Bitcoin investment is known to be a good and profitable investment. For more information, you can check out (https://bit-indexai.com/). The examples of massive profit-making of bitcoin are many from the Winklevoss brothers to Changpeng Zhao. But, the recent price fall of bitcoin from 2021 to 2022 made many people question its investment worth.
As the currency had just been born 13 years ago, volatility is a very common thing to happen. But, it is the main thing on which your profit in investment depends. So, the way to understand if investing in bitcoin is a worthwhile investment or not is by analyzing its price movement. In the journey of doing this, it will also be clear what strategies are to take to make an investment worthwhile in a particular situation.
What You Need to Know About Bitcoin’s Price Movement and How to Plan Your Investment
- Everyday price fluctuation & making a fruitful investment out of it:
Bitcoin has excessive volatility. If you focus on a small fragment of the price chart of bitcoin that generally shows the price movements of each day, you can notice that on some days bitcoin has fluctuated values several times in a day. It seems very risky for investment. But it is actually a great market characteristic to do short-term trading.
With the right strategy, if you can do short-term trading in a volatile market, it will be a fruitful investment for you. For that, you can choose a day trading strategy that allows enter and exit the market on the same day. You can also do multiple trading in a single day. Just make sure that you are buying bitcoin at a low price and selling it at a relatively higher price, the in-between spread is your profit.
- Can a one-year investment be worthwhile?
Investment during a few months or a maximum of one year is a middle-term investment. This can’t be directly said whether a middle-term investment is worthwhile or not because it depends on various factors. The main factor is bitcoin’s price movement.
Before you invest money in bitcoin you have to predict its future potential to some extent. This will be easy after some practice investment and studying the market. You can learn from experts how they do it. However, if you see that the price is on an upward journey you are good to go for a longer investment than just doing a day trading. Hold your coin till the price increases. If it consistently goes up for several months and you hold your coins you just successfully made a middle-term investment.
You have to keep your eyes on the price chart and keep predicting what tomorrow would be like. Once you notice a fall, you must be ready to sell your coins and earn a good profit.
- How the profit will be if you plan for long lime investment?
So many experts suggest long-term investment for bitcoin. Like in the early days, from 2010 to 2017, the price movement of Bitcoin was comparatively low. But the facilities that bitcoin gives to the people increased its popularity and its price too, and people started investing in it. As a result of the factors of popularity and demand for investment, bitcoin’s price went exponentially high in 2021 over $68,000. So, the early investors made a huge profit out of it.
This is called a long-term investment because the investors who have gained profit hold the coins for years. So, if the scenario will be like that in the future again, it is good for long-term investment.
But, how will you know that prior? Well, there is no option other than predicting it. Experts are predicting that bitcoin’s price can increase up to $100,000 in the future. The current price is around $20,000 as of June 2022. So, a chance can be taken by the investors at that point in time if bitcoin indicates an upward journey.
By the end of this article, it might have been clear to you how the price fluctuations of bitcoin work in determining the Bitcoin trading strategy. So, what makes you wait to start your bitcoin investment journey today?