The rise of cryptocurrency changed the financial sector for good. Currently, there are hundreds of crypto traders. However, Bitcoin is the largest, most popular, and most traded. As you seek to join crypto or invest in Bitcoin, this article gives some insights on whether the time is ripe to jump into the crypto world.
Bitcoin Overview
Bitcoin is the first ever crypto born in 2009 to replace the fiat currency. Since its introduction, it has significantly changed the financial industry. It has also attracted millions of investors and unlimited opportunities for anyone interested in crypto. With 19 million Bitcoin tokens in circulation worth over $1.26 trillion, it has prompted the rise of cryptocurrency exchanges. As a result, whether it’s your first Bitcoin buy or an experienced trader these days, it’s easy to invest in crypto.
What are the Observed Trends in Bitcoin?
Since its introduction, Bitcoin has seen a rise in popularity compared to rivals controlling over 50% of the crypto market share. Usually, a slight change in the price or regulations results in significant media attention. High unpredictability is a normal trend in the crypto market, and Bitcoin isn’t an exception.
The price trend hasn’t been smooth, and it’s a mixture of ups and downs. For instance, in 2010, someone on Reddit claimed to have sold 160 Bitcoin for $0.003, representing the lowest-ever recorded Bitcoin sales. However, the price skyrocketed in subsequent years, but not without bumps like the crash of 2013.
Within a decade, Bitcoin has seen huge price gains, and according to USA Today, Bitcoin recorded its highest price in history in March 2024 trading at $74,000. Crypto has not yet reached the climax, and more is expected as the market continues to grow. Actually, some sources predict that by 2030 Bitcoin will hit $300,000 signifying a potential long-term investment opportunity.
Investing in Bitcoin
Investing in Bitcoin isn’t hard. All you need to do is to join the crypto exchange and Bitcoin tokens. Once you buy the tokens, they’re securely stored in your wallets. The wallets are then secured by private keys, which are required when receiving or sending token coins. When buying these crypto assets, it’s important to know that various wallets exist to store them. They include hardware wallets, offline storage, crypto exchange, and software wallets.
- Hardware wallets: They are USB-like devices that store your private keys. They are more secure as they don’t require the internet to access and manage your assets.
- Software wallets: These are downloaded apps that manage and secure your cryptos assets. They are referred to as ‘hot wallets’ since they require internet connectivity to function.
- Offline storage: These wallets are downloaded to secure and manage your crypto assets without connecting to the internet. Due to this, they are commonly known as ‘cold wallets’ and enhance your crypto security.
- Crypto exchange: If you don’t have any of the three wallets, you can open a crypto exchange account. The account serves as a wallet where you can store and manage your crypto assets.
Why Invest in Bitcoin
Buying crypto is one of the ways to achieve financial freedom. One of the main reasons to invest in Bitcoin is its high acceptability. As more people become conversant with crypto, Bitcoin boasts high acceptance in many countries, businesses, and financial entities.
Another one is divisibility, whereby Bitcoin can be divided into small units. The crypto is subdivided into eight decimals with small units known as Santoshi. With Bitcoin being scarce, there is also an assurance of increased demand, hence the possibility of making a profit from your investments.
Besides the aforementioned reasons, Bitcoin is also portable and durable as long as there is a digital storage area. Although crypto offers many pros, you also need to consider cons like money laundering, scams, and others when investing.
Endnote
Investing in Bitcoin can be a great idea. Considering the upward trajectory over time and promising forecasts, it’s evident that buying Bitcoin should be one of your investment ideas. While crypto has some shortfalls, it has shown great potential where investors can reap big.
