Should I Invest in Bitcoin?
Should I Invest in Bitcoin is one of the most asked questions out there in 2018. The main reason why many people are interested in investing in Bitcoin is that of what we are hearing around about people making minor investments in Bitcoin when it was new and turning out millionaires recently.
So, should you invest in Bitcoin in 2018?
This is the question that we will try and answer in this article today.
Bitcoin is a very volatile currency, and so is all the cryptocurrencies out there. This volatility in the market value of Bitcoin happens because Bitcoin is not created or evaluated by any government or centralized bank out there. The value of the Bitcoin currency is currently merely dependent on the demand of the currency out there.
However, there is a limit on the total number of Bitcoins that will ever get generated. So in the distant future, Bitcoin is expected to reach a very high and constant market value as it is the first and the most popular cryptocurrency out there.
Now, if you are interested in investing in Bitcoin, then you should be aware of the two most common investment strategies used by most of the investors out there while making an investment in Bitcoin.
Buy and Hold Strategy
Buy and Hold strategy is one of the strategies used while investing in Bitcoin. In this strategy, investors buy Bitcoin at the current market rate (or wait for the rate to depreciate) and then buy a considerable sum of Bitcoin and will hold their Bitcoin asset until the market value is considerably higher than their purchase rate to make a big profit out of their investment.
Bitcoin Trading is another form of Bitcoin investing where people wait until the market value of Bitcoin reaches a very low range in comparison to its normal market value and when this happens, they invest in buying Bitcoin. When the market value of Bitcoin again shoots up, these investors sell off the Bitcoins that they own to make quick profits.
Difference between Buy and Hold and Trading Strategies:
Even though both the strategies mentioned above appear to be the same, the main difference is that in Buy and Hold strategy, investors make a really huge investment and does not wish to sell their Bitcoin when the market is temporarily gaining as they are interested in the higher financial gains that they can make out of what they have.
Whereas in trading strategy, investors sell off without taking any risks when the market is considerably high.
Did the above article help you in making a decision on “Should I Invest in Bitcoin?”?
Do you know Indian Exchange to buy bitcoins?
Do share your views about investing in Bitcoin as comments below.