Has Bitcoin Hit Bottom? Here’s What You Need To Know
by Arnab Dey Finance 07 December 2022
The cryptocurrency market has lived on a rollercoaster ride over the past few months. With BTC bitcoin leading the way.
After hitting an all-time high of nearly $70,000 in a huge rally that lasted most of 2021, BTC spent most of the following year in free fall. After several false bottoms, the price has been rocking around $16,000 for months.
Facts Which You Must Know Before Investing In Bitcoin
So, has Bitcoin hit bottom? And if so, is now the time to buy back in for a long-term investment? Let’s take a closer look.
The Cryptocurrency Market Is Volatile
First and foremost, it’s important to remember that the cryptocurrency market is incredibly volatile. This means that prices can swing wildly up or down over relatively short periods of time.
As such, it’s often difficult to predict where the market will be at any given moment. So, while BTC bitcoin may have hit bottom, for now, there’s no guarantee that it won’t drop even further in price.
Long-Term Potential
With that said, some experts believe that Bitcoin still has a lot of long-term potential. For example, Michael Novogratz—a former hedge fund manager at Fortress Investment Group—has predicted that BTC could reach as high as $100,000 by the end of 2025.
While this may seem like an impossibly optimistic forecast, it’s worth remembering that a decade ago, BTC was completely unknown and barely worth anything, so anything is possible in the world of cryptocurrency.
What You Should Learn From The Collapse of FTX
The recent collapse of FTX serves as a reminder that the bitcoin cryptocurrency market can be incredibly risky, and it pays to do your research before investing. Even the biggest players in the space are not immune from fraud or hacks.
Make sure you understand exactly what kind of asset you are buying into and how much risk is involved. And always remember to diversify your portfolio; never put all your eggs in one basket.
Crypto experts also recommend learning about cold wallet storage and planning to move your long-term investment cryptocurrency offline to keep it secure.
What Should You Do?
Ultimately, whether or not you should invest in Bitcoin right now comes down to your personal risk tolerance. If you’re the type of person who’s comfortable with taking on a bit more risk in pursuit of potentially higher rewards, then buying BTC at its current price could be a smart move.
On the other hand, if you prefer to err on the side of caution, you may want to wait until BTC stabilizes at a certain price point before investing.
Careful Trading
One thing is for sure—if you’re thinking about investing in Bitcoin or any other cryptocurrency, make sure you do your homework first and always remember to tread carefully in this volatile market.
Many experts agree that in times of pullback, it’s best to divest from smaller cryptocurrencies and instead focus on the biggest ones, if not Bitcoin, solely. In the past, BTC has been the cryptocurrency to rebound first and strongest, so it’s a good bet.
Understand The Risk Factors
As the world of bitcoin digital currencies continues to evolve, it’s important to stay informed, be proactive and understand the risks involved in order to make educated decisions about investments.
Only by doing so can investors protect themselves from fraud and market fluctuations. By being mindful and taking the time to research, crypto investors can be well-equipped to make informed decisions that will help them achieve long-term success.
Crypto Investments To Research And Consider
Cryptocurrency IRAs are one of the safest and most secure ways to invest in bitcoin cryptocurrency.
By investing with a reputable custodian, investors can maintain control of their assets with the added assurance that qualified retirement accounts will remain tax-advantaged for all eligible contributions and earnings.
MyDigitalMoney is a cryptocurrency IRA with a focus on security. They partner with Genesis Custody to guarantee their customers military-grade security while making investing in cryptocurrency more accessible, transparent, and user-friendly, especially for those who are looking to invest in crypto for retirement.
Crypto Mining Share Investments
Shares in a Crypto Mining operation are another option, allowing investors to purchase shares in a company that operates cryptocurrency mining centers.
This helps Bitcoin miners earn substantial profits without having to buy and maintain the expensive hardware themselves.
Although your mining operation will pay out in crypto, you are not able to directly withdraw the currency, as it is held in the company’s custodial account.
Other popular crypto investments include ETFs, and Decentralized Finance (DeFi). ETFs are a type of investment that tracks the performance of an underlying index or asset. DeFi is a system of financial services built on blockchain technology that offers higher yield potential than traditional investments.
Wrapping It Up:
The cryptocurrency market is notoriously volatile; however, some experts believe that Bitcoin still has a lot of long-term potentials. Ultimately, whether or not you should invest in Bitcoin right now comes down to your personal risk tolerance.
If you’re thinking about investing in Bitcoin or any other cryptocurrency, make sure you do your homework first and always remember to tread carefully in this volatile market.
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