Is BTC a Good Long-Term Investment?

During its existence, Bitcoin has become the most effective investment asset in the history of mankind. Not surprisingly, more and more people are trying to make money on it.

What is Bitcoin and why is it attractive

Bitcoin is the first successful cryptocurrency that was created as an alternative universal payment tool, free from centralized control. With Bitcoin, the formation of the digital asset market began.

If in 2009 the possibility of using digital money looked very vague, now any cryptocurrency owner can exchange BTC to BCN or other currencies, including fiat, trade on the stock exchange, spend their coins to pay for goods and services, accumulate for the purpose of investing.

A virtual coin with an initial value of fractions of a cent in the fall of 2021 reached unimaginable heights, its price briefly exceeded $69,000.

Now Bitcoin is going through a rather difficult period. The bullish rally was replaced by a bearish one, and during the first half of 2022, coin No. 1 consistently updated multi-month local lows. Since mid-June and at the time of writing, the coin has been trading in a relatively narrow range of +/- $20k. Analysts still do not exclude the possibility of a further fall to $10,000 before the start of a new cycle of growth.

Fundamentally, digital currencies are on the rise. Each new local minimum invariably turns out to be higher than the previous one. A fairly weighty argument in favor of an optimistic forecast for the future of cryptocurrencies is the fact of their accelerating integration into real economic processes.

How to get Bitcoin

Like any other money, Bitcoin can be bought or earned. There is a third way – mining, but it is very expensive and in modern realities it can hardly be called fast.

There are a lot of ways to buy digital coins now. Several hundred cryptocurrency exchanges operate on the network. In addition to them, there are exchange services, including offline. You can use the services of intermediaries or choose a multi-currency cryptocurrency wallet with the function of replenishing from a bank card.

The safest, simplest and most understandable for an absolute beginner is the purchase of digital money on the stock exchange. The algorithm is generally the same for all traditional crypto exchanges with relatively minor differences in details.

• Register a new user account according to the standard procedure.
• After confirming the registration, replenish the deposit in a convenient way for you in the currency available to you.
• Create an order to buy BTS.
• If you do not plan to conduct active trading, after the execution of the order, withdraw coins to an offline wallet.

Please note that many large trading platforms require identity verification in addition to registration. It may be required or optional.

Is Bitcoin a good investment?

The purpose of investing is to make a profit. The quality of investments is determined by the ratio of the risk of loss and possible profit. Good investments are those in which maximum profit is possible with minimal risk of loss. In the world of cryptocurrency, there are many exchanges that offer different cryptocurrencies and allow exchange for example 0.001 eth to usd.

Bitcoin retains its value in the long run and is not subject to inflation, as is the case with sovereign fiat currencies.

In addition to the actual saving of funds, Bitcoin provides opportunities for earning. The simplest strategy is hodling, long-term storage of an asset in anticipation of its rise in price.

It should be supplemented with at least averaging, buying more crypto at local minima. Active trading is a riskier activity, but a trader has the opportunity to make more profit than a hodler and much faster.

Of course, for competent averaging, and even more so, trading, some efforts will be required. At a minimum, you will need to study the coin itself, market trends, the basics of market analysis and monitor the changing market situation.

Buying coins for the purpose of investing at a multi-month low is a perfectly reasonable decision. However, do not neglect your own market research and weigh your options before investing. Cryptocurrencies are a very attractive asset, but the risk of losing everything here is much higher compared to securities and other conservative assets.