Cryptocurrencies have exploded in recent years. Bitcoin, Ethereum, Ripple, and other well-known cryptocurrencies are now household names. Ask your Uber driver if he’s heard of Bitcoin and he’ll probably tell you he has a stash already.
The price of Bitcoin has shot up in the last five years. It reached a peak at the end of 2017 and took a huge tumble last year, but this hasn’t stopped eager investors from jumping on the crypto-bandwagon. Because it is so easy to buy bitcoin online, anyone can do it.
One bitcoin is currently $3,500, which is a far cry from 2017 when it nearly reached $20k. Many experts believe that bitcoin will fall even further, as institutional investor take a few steps back. JP Morgan issued a stark warning before Christmas. They think bitcoin has a limited future and will soon be overtaken by other cryptocurrencies.
Make the Most of Bitcoin Volatility
Nevertheless, there are still plenty of investors who believe bitcoin isn’t over. They predict plenty of short, sharp rallies on the price front, as the market reacts to outside forces. Cryptocurrencies are very volatile, so it isn’t unusual for bitcoin to spike up and down by as much as 10% in a 24-hour period. It is important to be aware of the advantages and disadvantages of bitcoin, of course, but as long as you don’t invest more than you can afford to lose, day traders can make serious money cashing in on bitcoin price movements.
Jump into forex trading and look for a forex broker that offers crypto pairs. You can trade BTC/USD or XRP/USD. Instead of owning bitcoin, you can make money from price fluctuations instead.
Even if there are plenty of naysayers who think bitcoin has no future, it is still worth adding bitcoin to your investment portfolio. Bitcoin prices are dictated by supply and demand. The more people who buy bitcoin, the higher the price will rise. This is one of the reasons why the bitcoin price ballooned in 2017 – and then burst so spectacularly.
Of course, bitcoin investment is a risky proposition, as it could sink even further, but adding a small quantity of bitcoin is not a bad idea. Since bitcoin entered the mainstream, there are now plenty of places where you can spend your bitcoin. So, if all else fails, you can always swap it for Xbox store credits, a Namecheap domain, and even a KFC bucket if you live in Canada.
Be a Savvy Investor
Nobody really knows what the future holds for bitcoin, but if you want to do something different with your investment capital, bitcoin could bring a little excitement into your life. Track the price of bitcoin, read the cryptocurrency headlines each day, and form your own opinions.
Even if bitcoin does sink into oblivion at some point, there is no doubt that cryptocurrency is here to stay. Institutional investors are sitting up and taking notice of cryptocurrencies, and when the big boys get involved, the number of crypto transactions will rise.