The world of cryptocurrency can be a scary one for an investor. With so much news about hacks and price drops, it’s no wonder that so many people shy away from investing in digital currencies. However, as with any asset, there are ups and downs. The key is to find the right time to invest and not panic sell when the market dips. Here are some reasons why you should invest in crypto now and why you should keep investing in it moving forward.
Blockchain is here to stay
The first and most important thing to consider before investing in any cryptocurrency is the underlying blockchain technology. Blockchain is the digital ledger where everything is recorded. It is decentralized, tamper-proof, and transparent. It has the potential to change many industries beyond crypto. We’ve already seen blockchain being tested in the healthcare field for patient records, supply chains for tracking goods, and even voting systems for more transparent elections. If you’re considering investing in crypto, you should be looking at the technology behind it. Blockchain is here to stay and will continue to expand beyond the crypto industry.
Extreme volatility is normal for now
The second reason to invest in crypto now is the extreme volatility. Bitcoin reached a high of $19,000 in December 2017. That same month, it dropped below $10,000. In 2018, it went down to below $3,000 and then bounced back to above $11,000. This extreme volatility happens in the world of crypto. While it might seem like a bad thing, it’s actually a good thing. The extreme volatility is a sign that people are interested in investing in this digital currency. When the price drops, more people invest. More people investing means that the price will increase in the long run. The volatility also works in your favor as an investor. It allows you to buy low and then sell high. While no one can predict the future, the volatility gives you more room to make mistakes. You can buy at a higher price and still sell at a profit. If you’re investing for the long term, you’ll want the volatility to stay the same or even increase. A trading platform can help you track these changes more easily.
Bitcoin will eventually rebound and continue growing
The third reason to invest in crypto now is that Bitcoin will rebound and continue growing. This might sound strange after we’ve explained how volatile Bitcoin is, but it’s still true. Bitcoin is the first and most popular cryptocurrency in the world. Over time, investors have become more comfortable with other altcoins, but Bitcoin still dominates the market. For this reason, when other altcoins are crashing, Bitcoin tends to hold its value or even rise. The first sign of Bitcoin rebounding and growing again will be the emergence of altcoins. When altcoins start bubbling and people start buying again, that’s when you know that Bitcoin has started growing again too. Bitcoin will continue growing until it controls the majority of the entire crypto market, that’s why you might want to invest in Bitcoin at some point.
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