Bitcoin – the crypto that started a whole financial revolution, has been ruthless for some investors, while rewarding for those who play the long game. Recently, it experienced a dramatic 28% plunge, wiping out $367 billion in value. Yet, despite this shocking drop, investors seized the opportunity to buy the dip, demonstrating that playing the long game can be rewarding.
The acceptance and integration of Bitcoin into mainstream financial systems is slowly gaining momentum, with more than 500 million people investing in and using cryptocurrency. Major corporations are beginning to accept Bitcoin as a legitimate payment method, and financial institutions are offering Bitcoin-related investment products. The industry is viewing Bitcoin as “digital gold,” and even former president Trump sees its full potential and promises that he will “invest hard” if he wins the presidency. However, there is still some skepticism regarding investing in this coin because of its volatility and uncertainty. So, what makes Bitcoin a worthwhile investment despite its volatile nature?
Institutional Confidence
One of the most valid reasons to invest in Bitcoin is the growing confidence among institutional investors. When Bitcoin’s price plummeted, many big institutional players, including those investing in ETFs, saw it as a buying opportunity. This influx of institutional money not only stabilizes the market but also signals that the future value of Bitcoin will only continue to grow.
Market Maturity
Since the start of the “crypto golden age” during COVID, the cryptocurrency market has matured, with more sophisticated financial products and services becoming available. For instance, Morgan Stanley’s decision to allow its financial advisors to pitch spot crypto funds to high-net-worth clients is a testament to this maturity. Not only that, but court cases (missing text) SEC, and their inevitable loss, has given even more power from big players to invest and stick with Bitcoin. This led to the market evolving and becoming more resilient to volatility, making it a more attractive investment.
Hedge Against Inflation
Bitcoin, the “digital gold” of the 21st century, has a potential to act as a hedge against inflation. In times of economic uncertainty, traditional fiat currencies can lose value due to inflationary pressures and regulations. Bitcoin, on the other hand, with its capped supply of 21 million coins, offers a decentralized and deflationary alternative, giving stability where other financial systems fail.
Technological Innovation
The technology behind Bitcoin, known as blockchain, continues to revolutionize various industries. No other technology so far can match its transparency, security, and efficiency in transactions. And we are just at the start of its development and widespread. Thanks to these factors Bitcoin’s value proposition strengthens, attracting more investors.
Global Adoption
As we said before, there are more than 500 million crypto users worldwide. This trend in the next 5 to 10 years will double or even triple. Through Bitcoin’s adoption, more businesses and individuals will adapt and start using it as a payment method for purchasing their goods and services. From being accepted as a payment method by major companies to being integrated into financial systems, Bitcoin’s use cases are increasing by the day. This adoption drives demand, which can lead to price increase over time and reaching its bronze goal of $100k.
Diversification
Investing in Bitcoin provides diversification benefits to an investment portfolio. Traditional assets like stocks and bonds can be affected by market conditions in similar ways. Bitcoin, being a relatively new and independent asset class, can offer diversification, potentially reducing overall portfolio risk.
Potential for High Returns
While Bitcoin’s volatility can be daunting, it also presents opportunities for high returns. Historically, Bitcoin has experienced significant price increases following periods of volatility. Investors who can tolerate short-term fluctuations may be rewarded with substantial long-term gains.
Thinking about purchasing Bitcoin? Here is how!
Where to purchase Bitcoin?
Cryptocurrency exchanges: These platforms are designed to have a more easy user experience for new investors. They offer digital wallets that nearly all crypto can be stored in. Through cryptocurrency exchanges, users can trade Bitcoin using various payment methods like bank transfers, credit/debit cards, and even PayPal. They offer a secure and user-friendly interface for managing your cryptocurrency investments.
Bitcoin ATMs: These machines allow you to purchase Bitcoin using cash or a debit card. The Bitcoin is then transferred to your digital wallet. Bitcoin ATMs are becoming more common in many cities in the USA and throughout Europe.
Peer-to-Peer (P2P) Exchanges: P2P platforms like LocalBitcoins and Paxful connect buyers and sellers directly. You can negotiate the price and payment method with the seller, which can include bank transfers, PayPal, or even cash in person.
Mainstream Brokerages: Some traditional brokerage firms, like Robinhood, offer Bitcoin trading. This can be a convenient option if you already have an account with one of these brokers.
Money Transfer Apps: Apps like PayPal, Venmo, and Cash App allow you to buy Bitcoin directly through their platforms. This can be a quick and easy way to get started with Bitcoin. If you’re interested in learning more about how to buy Bitcoin with PayPal, you can check out this extensive guide.
Purchasing Bitcoin Through Crypto Exchange
If you’re considering investing in Bitcoin through cryptocurrency exchanges, here are some steps to get you started:
Choose a Cryptocurrency Exchange: Select a reputable exchange where you can buy Bitcoin. Popular options include Coinbase, Binance, and Kraken. Make sure the exchange you choose has good security measures and user reviews.
Create an Account: Sign up for an account on your chosen exchange. You’ll need to provide some personal information and verify your identity. If you want to avoid this – you can always create a software wallet like MetaMask or a cold storage wallet that supports Bitcoin.
Secure Your Account: Secure your account with all the securities possible. Use email, phone number, authenticator and everything else available on the crypto exchange. Enabling two-factor authentication (2FA) adds an extra layer of security to your account.
Deposit Funds: Once you’ve set up your account, it is time to add some funds to your account. You have a bit of freedom here – purchase as you go or have a set amount of $ so you can purchase Bitcoin directly. Deposit the funds into your exchange account and start buying.
Buy Bitcoin: Once your account is funded, navigate to the Bitcoin trading section and place an order. You can buy Bitcoin at the current market price or set a limit order to buy at a specific price. You can play around once you’ve purchased your coin. You can set your crypto to be sold if it reaches a certain price, so losing your initial investment is protected.
Store Your Bitcoin Safely: After purchasing Bitcoin, it’s crucial to store it securely. You can keep it on the exchange, on their digital wallet, or for better security, you can transfer it to a personal wallet.
Conclusion
In the end, Bitcoin, despite its volatile nature, has a lot to offer for eager investors. As slowly events all over the world slowly unfold, the potential for high returns all contribute to its attractiveness. As with any investment, it’s essential to conduct thorough research and consider one’s risk tolerance, but Bitcoin’s potential for growth and innovation makes it a worthy consideration for your future investment.