Blockchain based financial systems entered the global market just over a decade ago, taking traders and financial brokers the world over by storm. The massive success that was seen in the very first digital token lead to the mass development and implementation of many others that made use of the very same operational principles. Today there are thousands of crypto coins on the internet, a number of them being categorised among high end coins. However, if there is one cryptocurrency that has withstood the test of time, it is Bitcoin, having gone through so many, from massive breaches and thefts, to huge price drops. Despite all this, the platform remains on top, far ahead of the next crypto in line, ETH. As of the time that this review was created, a single digital Bitcoin token was worth just a little bit shy of $48,000, a long shot from its so called competitors. At such large values, Bitcoin purchases are considered to be very lucrative investments, where the market values may even increase through time.
As the fame of the crypto increases, more and more users are seen to be attracted to the trade. However, it is also seen that quite a number of these users end up encountering some problems while running the set up process, and even before, when they would be selecting the most appropriate amount to work with. It is in response to this that we provide this quick guide on cryptocurrencies, with particular emphasis on how much you should invest in Bitcoin.
Should you invest in Bitcoin?
Well, this depends on what you are looking for; if that is a secure crypto network that is trusted the world over for being user friendly and reliable, then yes, BTC is for you. Generally, there are some factors that may push one to invest in BTC, one such being their relative intentions with the funds, where digital payments are proven to be nearly impossible to hack, and very efficient in running transactions. That said, the ultimate decision is up to the trader, though we would definitely recommend that they do invest in BTC.
Factors to consider before investing
The world of cryptocurrencies is basically uncharted lands, where anything may happen. To such ends, one must make sure to be in the right mind when looking to invest in BTC. This is simply because a clear head is key to the overall consideration done prior to making the investment. Such considerations include:
Recognition of Standing Risks
Well, there is no better way to say it than it really is; the crypto market is of high volatility, and is somewhat unstable. This means that coin values are known to be under constant fluctuation, where prices may suddenly drop or rise, without any warning whatsoever. In other words, this translates to constant changes in purchased stocks. It is because of this that any who wish to invest should simply make their investments in regards to amounts that they are prepared to lose altogether if the worst comes to the worst.
Profit Capability
This goes to touch a bit on the factor mentioned above. Put into simple terms, one should also be aware that as much as they may lose their entire investments, they may also get them multiplied a thousand times over when they become rich, simply because they made the decision to invest in large amounts, the very thing that was discourages above.
Time Consciousness
This comes into reality as people generally tend to buzz around about crypto during times of price spikes. These periods must all be put into consideration as they have direct influence on token profitability. This is because periods of large value surges are seen to come with large profits, but only for the duration of those periods. They are usually followed by immediate lows, investing during that time may not be so ideal, as one might even end up inquiring losses.
Market Diversification
This is quite smart, ultimately increasing a trader’s chances at making large profits. it basically sees the trader making staggered investments over multiple markets, the likes of cars, houses, clothes and other potentially valuable assets. One may even start out small, spread out strategically across all areas, then gradually increasing stock investment prices as time proceeds. It simply evens out the odds a bit.
How much to invest
Well, the overall decision on how much to invest is up to the trader, it is their money after all. The official reply to this would be for one to make conscious investments that they can afford, investments that won’t leave them dead in the water if all goes wrong. However, there is a statistical response too, which suggests that it would be best for one to invest around 5% to 30% of their overall capital, where 5% is simply safe as is, and the latter is somewhat of a highest, the highest risk at that. Once more, the decision is not at all others, where one can even make a 75% investment, it just isn’t recommended.
With the amount in place, the trader can now worry about how they ae going to purchase the tokens. Luckily enough, there are quite a number of independent crypto exchange platforms that facilitate in just that, and more. That said, here are a few crypto exchanges in which traders can purchase Bitcoin:
Binance – this crypto exchange is one of a kind, facilitating in trades of large volumes. The main interface is very easy to understand, and some of the more crucial settings are automatically placed, making it much more convenient to purchase the coin. The purchases can be funded in many ways, inclusive of a number of fiat options.
CEX.io – this exchange is based in the United Kingdom, with services that expand across the globe. It is quite competitive, with similarly large trade volumes. Traders can initiate all kinds of operations, and pay for them using either from a variety of options.
Conclusion
If you have ever ventured into the crypto world at all, you have at least asked yourself ‘’how much should I invest in Bitcoin?’’ If so, it is our greatest hope that this short guide saw to it that the problem was fixed. Any crypto purchase is generally a complicated decision, more so for a token of such a large value.
