The popularity of cryptocurrencies continues to grow. Although the current market situation is very different from the picture that was observed in the fall of 2021, it is possible to make money on the crypt.
Of course, the time when you can exchange 0.00005 BTC to USD and buy a car for the proceeds is unlikely to come as quickly as you would like. And yet, the road will be mastered by the walking one, and you can really start with a small amount.
Earning Potential and Simple Strategies
When you make an investment decision and invest in something, you plan to get more than you put in. The quality of investments is determined by the ratio of risks and potential profit. The lower the risk and the higher the profit, the higher the quality.
Despite the fact that Bitcoin is an asset of a fundamentally new class, traditional investment methods are successfully applied to it and they work well. The simplest of them is hodling, that is, long-term storage of an asset in your wallet. As the cryptocurrency market continues to grow, your asset will appreciate in value over time.
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The easiest way to increase the efficiency of holding is to average dollar costs. This is achieved by buying the asset on dips. This will require some effort. At a minimum, you will need to closely monitor the market situation.
However, it is worth remembering that cryptocurrencies mean a game for a long time. Crypto enthusiasts and crypto-optimists believe that in the foreseeable future, Bitcoin can rise in price to $100,000 per coin, and the most daring talk about even higher milestones.
It is possible that this is exactly what will happen, but no one is able to name the exact date of such a significant event. To put it bluntly, we are unlikely to see such numbers until the end of 2022, and after 2024 or 2028 the likelihood of new historical highs increases.
From the point of view of increasing profitability, trading looks more attractive. An experienced trader can make the same profit as a long-term investor, but much faster. Of course, the risks in trading increase significantly when compared with calm hodling.
Is it Worth Investing in Bitcoin
When choosing crypto assets for investment, almost all beginners pay attention to Bitcoin. First of all, because it is the most famous, most expensive and longest-lived cryptocurrency.
The ability of Bitcoin to store the value of invested funds has already been tested by time. For example, in the United States in March 2022, the inflation rate was 8.5%. Accordingly, people who did not invest in anything still suffered losses.
Those who bought Bitcoin during that period would have had a profit of 3.27% by March 2022. Yes, it’s not that much, but it’s still better than -8.5%.
In a much more advantageous position were those who not only bought BTS at a local minimum in the summer of 2021, but also managed to sell the coin between November 2021 and March 2022.
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Is 2022 a Good Time to Start Investing?
Now the market is dominated by bearish trends, but every recession will eventually end. The average price of Bitcoin is constantly rising and as blockchain technology becomes popular, growth will continue. Experienced investors are now cautiously buying up a fairly thinner asset in anticipation of the next market cycle.
If you are ready for a long-term investment, then Bitcoin is a very effective tool worthy of your attention. You do not have to invest large amounts at all, the threshold for entering the crypto market is several times lower compared to the threshold for entering the markets of traditional assets.
To begin with, you can risk the amount that is feasible for yourself, which is not afraid to lose. However, this rule remains relevant for all investors and traders.
The market lives its own life and is indifferent to your experience, as well as the decision to choose LINK vs MATIC. Conquering him is a very ambitious dream, but first you need to learn how to keep up with him. And for this you need a cold calculation, analysis of the situation and a well-thought-out strategy.
