Are you one of the many people who want to invest in Bitcoin but think it is too late? You are not on your own, to be sure. After all, many believe that unless you were an early BTC investor, you might have missed your chance to make a significant profit. However, that’s not necessarily true.
In addition, crypto market volatility is a primary concern for many wanna-be Bitcoin investors. They worry about the constant ups and downs cryptocurrencies experience, especially the latter. They believe that if the price of Bitcoin falls to zero, they will go bankrupt as well.
Is this how you feel, too? If you answered yes, you cannot succeed in the cryptocurrency market. It can be a very profitable endeavor, but only for those with the patience and mental fortitude to survive the many plot twists the market presents over time. If that doesn’t sound like you, you might stay in your current living condition forever.
But if you think you might be able to take the plunge and bear the risks for the sake of the reward, we have some info you might be interested in. Continue reading to find out more about Bitcoin’s profitability and whether crypto is worth your time.
How Should Traders View Bitcoin Volatility?
Traders should not place a high priority on the current Bitcoin price. First and foremost, they must consider its potential. For instance, if you think 8,000 USD per BTC is a lot today, imagine how much more it will be when it hits 150,000 USD or 500,000 USD. If you do not invest now, you will miss out on the chance, and perhaps you will look back and say, “I should have invested when Bitcoin was 8,000 USD.”
In 2010, the situation was the same. The majority did not expect bitcoin to hit 800 USD in three years. Despite that, some individuals believed in its potential and willingly took the risk. Of course, before you do the same thing, you need first to learn how cryptocurrencies and the crypto market work. Patience, as they say, is the key. Do not rush. Examine how far the price of Bitcoin may rise.
Most of us crave instant gratification in our desire for quick wealth. We place a greater emphasis on the get-rich-quick schemes available to us. For this reason, we should not be surprised that so many people get easily duped — the majority of those schemes are total scams. It is also the reason why many of us like day trading. Many people believe they can make a lot of money this way. They prefer to earn a quick profit than waiting a lengthy period, yet they often wind up losing in the end.
But as the Immediate Edge website warns, “crypto trading remains a risky venture, and nobody can guarantee you significant money or profits overnight.” When you see websites or apps that claim they can make you a millionaire quickly with zero effort on your part, that’s a giant red flag.
The high volatility of cryptocurrencies might eat through your deposit in a day, but is not likely to multiply it in the same amount of time. Usually it’s the more patient, long-term trading that can earn you those impressive profits successful crypto investors boast of.
What Is Bitcoin Scarcity?
Traders should not focus only on forecasts and guesses. One needs to seek proof in the analysis of the value of Bitcoin. Make sure the information you’re using is backed up by data and proper research.
Knowing how beneficial BTC is will motivate an individual to keep using it. The crypto community knows that. That is why they often compare it to gold. But do you understand why?
Just like gold, Bitcoin is valuable because it is scarce or limited. According to Investopedia, the demand for Bitcoin ramps up because its supply is declining. As a result, investors fight for a piece of the continuously-increasing profit Bitcoin generates by trading its restricted supply. Right now, the cryptocurrency is only at 21 million BTC in circulation, and that quantity is considered a limited supply.
A thing becomes valuable because producing it is costly or because it is irreplicable. It is the same reason why antiques and gold are so expensive. Due to their original design and construction, they are impossible to imitate.
The same is true for Bitcoin. It is valuable because mining it under a proof-of-work consensus mechanism is getting increasingly more difficult and more expensive. To produce a new bitcoin, consuming high amounts of power is necessary. In addition to that, no one can fake Bitcoin.
There are so many reasons why you should invest in Bitcoin. Firstly, Bitcoin isn’t going anywhere, despite what the skeptics might think. It is not too late, and we can still invest in it. We are still in the early stages of the crypto era, so expect it will take a long time for cryptos to develop fully.
Also, Bitcoin is long-term bullish compared to other altcoins. Unlike other cryptocurrencies, it has no CEO, marketing team, or headquarters. Even amid constantly growing competition, Bitcoin has maintained its dominance in the crypto space.
Please note that this article cannot serve as financial advice, and it does not guarantee a particular outcome. You need to do your research and make your own decisions. However, we hope you can use it as a starting point for individuals planning to invest in Bitcoin.
If you want to learn more about Bitcoin, you can go to crypto educational sites like Coindesk and Cointelegraph. If you are a data-driven person, you can check the current numbers in the crypto market through Coinmarketcap. There are many ways to become educated in cryptocurrency. Always remember to proceed with patience and caution.