Should I Invest in Bitcoin? Our Guide To Bitcoin Investing
Everybody knows that cryptocurrencies are big news, but is Bitcoin a good investment? That’s the question that we’ll answer here. But we’ll give you a hint, and that’s that it is, and you can easily invest in Bitcoin at Zeply.
There are lots of misconceptions about Bitcoin. Some people think that it’s unsafe and little more than a speculative bubble. But we’ve found that cryptos like Bitcoin can be a valuable part of any balanced investment portfolio. So keep reading to get the full answer to the question of ‘Is Bitcoin worth investing in?’.
What does it mean to invest in Bitcoin?
Before we fully answer the question of ‘Is it worth investing in Bitcoin?’, it’s worth thinking a little about what we mean by investing. One of the easiest ways to define an investment is to simply use the example of buying Bitcoin on Zeply.
Let’s say that you bought £100 worth of Bitcoin yesterday. Since then, the price of Bitcoin had risen by 6%. You would then either be able to sell off your Bitcoin investment today to make a £6 profit, or you could keep your investment and hope that it grows even more.
Therefore the process of investing in Bitcoin is entirely reliant on the hope that it gains value over the course of your investment. It’s akin to the concept of ‘buy low, sell high’ that is the same for all financial markets from foreign currencies to stocks and shares.
But when you invest in Bitcoin it’s usually more of a long-term decision rather than a series of short-term, one-off trades. Some people will invest a significant amount of money in the cryptocurrency, while others have found that even a small investment has paid off substantial returns as a result of the impressive growth of Bitcoin. Just remember that there’s no guarantee that the value of Bitcoin will continue to rise.
Is Bitcoin a good investment?
Overall, we think that Bitcoin has been a positive investment for many people. It is this reason that led us to set up Zeply so that we could offer customers a simple and safe way to invest in cryptocurrencies like Bitcoin.
The main thing to remember is that Bitcoin is a speculative asset. This means that it is subject to the same kinds of price rises and falls like the British pound, Apple stocks, or the price of oil or gold.
However, when answering the question of ‘Should I invest in Bitcoin?’, it’s worth noting that the majority of cryptocurrencies are volatile. This means that their value is liable to rise and fall very rapidly. As a result, your investment in Bitcoin could either make you a lot of money, lose you a lot of money, or anywhere in between.
Thankfully, by investing in Bitcoin at Zeply, you’ll be given the tools to make sure that you avoid making too many common errors with your investment. We’ll be on hand to make sure that you know the latest price of Bitcoin so that you know whether to buy or sell. You’ll also get to see how the cryptocurrency is performing alongside other assets such as currencies like the euro. Don’t forget that we also include a variety of guides and tutorials that explain how to manage your Bitcoin investment.
Plus simply by asking the question ‘Is Bitcoin a good investment?’, it shows that you’re being cautious in how you approach investing in the cryptocurrency which is a smart move. Take a look below at a few investment examples that should help answer the question of ‘Is it worth investing in Bitcoin?’.
Is it worth investing in Bitcoin over the long-term?
We’ve seen the value of Bitcoin rising significantly over the long-term. As a result, we’ve made it easy for you to buy Bitcoin now so that you can save for the future. More and more people have started including the cryptocurrency in their investment portfolio alongside more traditional assets like stocks and commodities.
Much of this is due to Bitcoin’s phenomenal growth in value. The cryptocurrency was only launched in 2009, and since then it has reached the current price of $49,589.74 at the time of writing this guide. When you consider the fact that a Bitcoin was only worth $1 in 2011, it’s a truly remarkable rise in value. As a result, there will be plenty of people who managed to make a significant amount of money through investing early in Bitcoin.
So is Bitcoin a good investment despite having been in circulation for over a decade? We think so. This is because the cryptocurrency has shown remarkable rates of growth in the past few months. The value of Bitcoin was well below $10,000 at the start of 2020, but it was nearly four-times that amount one year later.
Of course, an investment can always go in the opposite direction. Take the time period between 2018 and 2019. This saw the value of Bitcoin slumping from nearly $20,000 to below $5,000. So if you’d invested in Bitcoin at the start of 2018, your cryptocurrency investment would have been worth less than a quarter one year later.
Such cautionary tales are an essential part of answering questions like ‘Should I invest in Bitcoin?’ At Zeply, we want you to be able to make an informed decision about investing in cryptocurrencies. So as long as you’re aware of the downsides of Bitcoin investing, you should be able to plan accordingly without risking your financial stability.
Understanding the short-term volatility of Bitcoin investments
Not all investments have to be made over the long-term. Many people have successfully invested in Bitcoin over a shorter amount of time and have still managed to get a decent return from their investment. Zeply gives you an easy way to do this.
By signing up to our crypto platform, you’ll find a quick and simple way to buy and sell Bitcoin in accordance to the changing market conditions. We’ll show you the constantly updated price of Bitcoin so that you know when to make your investment.
Such real-time data is hugely important as Bitcoin can have some rapid changes in value over a short amount of time. When we wrote this guide, we saw the value of Bitcoin hitting values of $51,445.67 and $45,275.44 within the same 24-hour period. If this cryptocurrency can show such volatility in one day, it leads to the question of how volatile will it be over the course of a month or a year?
Of course, it’s important to remember that the volatility of Bitcoin isn’t always a good thing. If you ask ‘Should I invest in Bitcoin?’ to somebody who bought a lot of the cryptocurrency at the start of 2018, you might not get a positive answer. This is because the value of Bitcoin dropped by a staggering 65% during January and February 2018.
While this is just one example of how Bitcoin can fall as well as rise, it’s important to note that this is a particularly nasty case study. Thankfully, investing at Zeply can help you anticipate all of the unexpected fluctuations in the market. While there will certainly be many more twists and turns in the story of Bitcoin, we’ll be by your side to make sure that you make an informed investment decision.
Consider your individual investment needs
It’s important to be realistic when you decide to invest in Bitcoin. When you ask the question ‘Is Bitcoin a good investment?’, you’ll have to think carefully about what you expect to get in return. This is because there are no guarantees that you will profit from your Bitcoin investment.
As such, many investors have found that buying Bitcoin can work well as part of a broader investment portfolio. Buying commodities like gold have historically been seen as stable investments that serve up solid, rather than spectacular gains over the long-term. By including more volatile assets like Bitcoin in your portfolio, it adds greater diversity while ensuring that you stay protected from the more violent fluctuations of the market.
We should also note how it’s always a good idea to make modest investments to begin with. After all, most investments have long-term goals and you shouldn’t expect to make rapid gains overnight. Plus you’ll never know which way the market is going to go.
All of which shows that there is no simple answer to the question of ‘Should I invest in Bitcoin?’. But as long as you remember to come to Zeply for your crypto investments, you’ll always be able to find an easy, secure and informed way to buy and trade Bitcoin.
