The last couple of years has been a roller coaster ride for cryptocurrencies, especially Bitcoin! Talking of the token which started it all,’ it has left the investors divided into a group of two. While many continue to see Bitcoin in a positive light and continue to skyrocket their investments in the particular token. We also have investors who continue to see the token in a negative light.
But with both individual and institutional investors claiming big with the currency, how far of a successful investment is Bitcoin today? Even if it is, what makes it a token worth investment in 2022? Let’s find out with this weblog that discusses the different market movements of Bitcoin and what makes it worth your investment!
If you’re a keen Bitcoin investor, the chances are that you already know of the things that make the first-ever crypto unique. Yes, we’re talking about the limited maximum supply of 21 million tokens, ease of transfer, and the reliability of ownership.
However, what if we told you that there are more than just the factors mentioned above? We’ve discovered some of the unique characteristics that make BTC a reliable investment tool in the section below.
The first thing you need to understand is the Blockchain technology backing the functioning of BTC & other cryptos in general! The open-source code creates a shared public history of Bitcoin transactions. These transactions are organized into different blocks chained together to leave no room for any tampering. Every Bitcoin user can access the network and view all transaction history from the permanent record.
Every Bitcoin wallet comes with a private and public key. This key is your only way to access your Bitcoins and even initiate transactions through digital signatures. This allows you to transfer and receive Bitcoins securely with no hassle.
Of course, it has now become effortless to buy Bitcoins with readily available payment processing platforms and Bitcoin ATMs. However, it was not always this easy! Conventionally, you need to mine BTC (No, not under the ground but over powerful computers). Mining allows investors to gather units of the token while solving complex mathematical problems via their computer systems.
With more people getting comfortable with the thought of investing and trading in crypto assets, the crypto market cap continues to grow, booming the crypto-economy and adding more visibility to Bitcoin in the process. In addition, with the growing BTC awareness, many investors often claim it to be the digital gold that can be used as a means to store value, similar to its physical alternative.
In terms of its market movement over the years, Bitcoin has come a long way since its inception in 2009. Currently, BTC yields a massive market cap of $588.26 billion alongside a 24-hour trading volume of $661.44 million. These figures remain untouched by any other cryptocurrency available in the market. So given all the factors that depict the performance of a cryptocurrency, it is safe to say Bitcoin is in a great position, and things are looking great for the future.
Offerings like these make Bitcoin a favorable trading option for many. Bitcoins are ideal for anyone looking to diversify their portfolio and invest in something other than conventional stocks or real estate. Besides, Bitcoin is very different from your traditional stock markets, where trading occurs within a given set of times. With Bitcoin and other cryptos, you can trade at any time of the day with its 24/7 market availability.
However, that does not mean you should ignore the high volatility of Bitcoin investments. Instead, it is recommended that you carry out your trading only after thorough research and when the trading activities are at their peak. This ensures you get a favorable price and enough liquidity to ensure safe and investment-worthy trading.
Besides, experts also suggest limiting your Bitcoin investments to 1-3% of your portfolio is best. This gives you enough room to breathe and mitigate the impact of risks associated with crypto investments.
You also need to understand that the correlation between Bitcoin and the conventional stock market is rising. This is primarily because the interest in Bitcoin is now peaking among investors who usually dabble in the stock market.
Given all the factors that influence the value of Bitcoin, it can be safe to invest in it on a long-term basis. Of course, the prices can go up and down in the short term, but things are certainly looking good for the future of Bitcoin.
Pro Tip: For the smart investors who want to lock in their crypto profits, they can use payment processors like Coingate to make BTC, BCH, LTC, ETH, XRP, BNB, PAX, DASH, XLM, TRX, ATOM, DAI, EOS, NANO, BUSD, QTUM, and USDT purchases.
Many factors make Bitcoin a favorable investment option for many. Therefore, it is recommended you evaluate your goals and requirements before investing. You must also get all the necessary information and understanding of cryptocurrencies to drive informed decision-making.