Personal Finance

Is It Too Late to Invest in Bitcoin?

Are you among the many who follow the cryptocurrency markets? If so, you’ve probably wondered whether there’s still time to invest in Bitcoin (BTC) and other leading coins in the niche. It’s not too late. In fact, 2021 might be the perfect time. Here’s why.

History is a Good Indicator

Sometimes the best way to make an educated guess about the future is to study history. If there’s any sense in that technique, then Bitcoin could be in for more ups and downs for at least several years. That means there are plenty of investing opportunities for those willing to take the associated risks. Chances are, the leading cyber coin has not reached its highest high, but that doesn’t mean you should expect a direct ride to the top. Quite to the contrary, the entire history of BTC has been one where the price undulates unpredictably for a while before each new high. Anyone who thinks that Bitcoin has settled into a long-term sideways price mode hasn’t studied the coin’s history very carefully.

Trading Technology Makes It Easy

If you like to buy and sell cryptocurrency, this is an excellent time to get involved. The main reason is the large selection of Bitcoin trading apps that offer all sorts of functionality. The apps make it easy to manage, place, and track all your trades. When cryptos first appeared and become available to everyday investors, it was challenging to buy and sell them quickly, measure profit and loss, and keep track of coin portfolios. Modern technology has made it as easy to trade Bitcoin as a typical share of corporate stock.

Supply is Finite

There’s a theory that BTC will continue to work its way upward, with stops and starts, because the supply is limited to 21 million units. Unlike national currencies, most stocks, bonds, and even precious metals, there is a hard cap on the number of Bitcoins that will ever exist. This restriction is unique in the world of finance, and seems to be propelling the value of the leading crypto to new levels every so often.

The Pandemic Has Helped the Market

It’s seems counter-intuitive in a way, but the COVID pandemic has actually helped clarify a lot of things for crypto traders. First, it become clear from the first days of the virus, back in March of 2020, that BTC did in fact respond to real-world conditions. As the global economy came to a screeching halt, the value of all cryptocurrency fell, but only temporarily. After a few months of sideways trading and stalling, the price of Bitcoin began to rise slowly, perhaps as large numbers of investors viewed it as a hedge against stocks and other traditional securities. Then, late in 2020, the leader of the crypto market began to soar to new heights. That rise has continued, with just a few corrections, since then. So, the entire COVID experience was a sort of test. It demonstrated that the world’s leading crypto coin could not only withstand a financial crisis but come out smelling like a rose.

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