Source: https://pixabay.com/photos/bitcoin-money-decentralized-2007912/
It’s amazing to check out how Bitcoin went from being worth less than a dollar to become worth more than $40,000 in over a decade. Due to its amazing price movement over the last couple of years, more people are interested in investing some of the money towards this cryptocurrency. Of course, it pays to be smart when it comes to any investment plan.
Before you buy into the crypto or bitcoin market, you need to learn more about it first. It can be a lucrative venture but only if you are prepared for not just the rewards, but also the consequences too. Here’s everything you need to know about it.
Know The Rates
Whether you are buying or selling bitcoin or any other cryptocurrency, it’s a must that you know the rates. Exchanges each have their fees when it comes to cashing in and cashing out your money. Other than that, bitcoin prices move relatively fast so it’s better to stay updated with regards to their pricing.
Source: https://pixabay.com/photos/bitcoin-dollar-president-washington-2730220/
It’s also vital that you understand the exchange rates of the currencies you are trading. Keep in mind that GBP –> BTC rates do vary from USD –> BTC rates, as well as other currencies. This matters especially if you are hoping to do short trades instead of making long-term investments.
Prices Change Abruptly
One of the unique things about the crypto market is that prices can move greatly in a short amount of time. Bitcoin, ethereum, and many other cryptocurrencies are prone to these rapid changes so it is a must that you study the market to somewhat get a feel of the possible future movement of bitcoin.
Last Dec. 2017, bitcoin rose to a high of $24,000. However, less than a month after, the price dropped as low as $7,000. A few years later, it set a new record by rising to over $40,000 which took many investors by surprise. The last thing you’d want is to buy bitcoin at a certain price only to have it drop significantly after a few days or so.
In truth, no one can actually predict the price of bitcoin. However, if you are up-to-date with the recent changes on the blockchain or on the market cap of bitcoin, then you can get an idea of what the movement can be to some extent.
Crypto Bubble
Simply put, the crypto bubble is a concept wherein prices of coins such as bitcoin will eventually drop to zero after reaching all-time highs. While some experts claim that the recent price surge isn’t going to result in the crypto bubble popping, it’s still better to be prepared for what could eventually happen
Bitcoin and other cryptocurrencies can actually be a good venture especially if you know what you are doing. It’s a must to be up-to-date on the market at all times before you make any purchases. Even those with a relatively large experience at investing in cryptos study the market every once in a while. You should too.
