The cryptocurrency markets have been plummeting for days now. But as of last night things started to turn back around. That means it’s a good time to buy Bitcoin and other cryptocurrencies. They’re at a low price now, but they won’t be there for long and one could turn a quick profit.
Why Buy Bitcoin?
Bitcoin is a decentralized, cryptocurrency with a highly speculative price structure. Essentially, it’s worth what people are willing to pay for it. Right now, people are willing to pay just under $12,000 per coin. On January 6th it was $17,712.40 but the markets took some hits on bad news and that price dropped to a low of $9,402.29 yesterday.
However, things took an upturn and the price is starting to climb again. So if you buy Bitcoin now, you could see a good return on that investment in the very near future. People expect that Bitcoin will rise back up to pass the $20,000 per coin point again soon. Looking at a four-hour trading chart for the past two days shows that six of the last nine four-hour periods saw gains in the price.
If You Buy Bitcoin
Say you buy Bitcoin today at it’s current price of $11,794. If it rises back to the $20,000 you would see a 69% increase on your investment. That’s the kind of return that you can’t get on the majority of stocks or securities. It’s a return on investment that you’ll never see from putting money into savings or putting into a bank-driven account.
Looking at the cryptocurrency markets shows that almost all of the top 100 cryptocurrencies have been down for the past week or so. A lot of that was because of news coming out of Asia, specifically China stating they’d crackdown on cryptos and South Korea announcing they may try to ban crypto trading. While that all drove down prices, because of major sell offs in those countries, it won’t last. What it really did was create an entry, or re-entry point to buy Bitcoin and other cryptocurrencies.
Now is the time to buy Bitcoin for several reasons. Cryptocurrencies are getting a lot of mainstream news coverage. Many believe we are at a point of acceptance and adoption as a technology. Blockchain, the underlying technology, is starting to be applied to numerous other industries. Many implementations will have their own cryptocurrency which will continue to grow the market and offer other investment opportunities. As the technology evolves through its next several iterations, it will come with more opportunities for investment as the technology matures and becomes even more useful. Each iteration of blockchain technology, and whatever it evolves into in the future, will have ways of getting in and making money.
How to Buy Bitcoin
If you’re not familiar with cryptocurrencies and Bitcoin you may not know how easy it is to get into it. There are several trustworthy companies that you can work with to quickly get into cryptocurrency trading. Coinbase is one of the first places you should sign up. It’s an online wallet with limited trading between cryptocurrencies that it lists. The current cryptocurrencies on that platform are Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. From there you can then start looking into cryptocurrency exchanges. Coinbase is also part of GDAX, an exchange, similar to stock exchanges, where you can day trade those same currencies.
If you want to get into trading other cryptocurrencies there are several other exchanges that list a lot more of them. Binance is a popular one, as are Kraken, and BitFinex. Bittrex is quite popular and offers over 250 trading pairs which means there are lots of alternative coins (altcoins) to choose from and trade. Another popular exchange, KuCoin, is based in South Korea. However, with the potential that South Korea will shut down cryptocurrencies in the country, you may want to steer away from them. Gemini is an American-centric exchange, which only allows American investors. Other options include Bitstamp, Coinone, CEX.IO, Bithumb, Poloniex, and HitBTC.
Words to the Wise
This article, and other like it, are not financial advice. They are information that may lead you to make a decision but no one can be held responsible for your actions except you. We simply provide information to help better inform those who may want to get into cryptocurrencies. The old investing adage, only invest what you can afford to lose, is a good rule to guide you. The cryptocurrency markets are highly speculative. These are not stocks that rise and fall based on the performance of a company. You are not buying a portion of a company. What you are buying is a digital currency, one that may rise or fall more than 50% in a single day. If you are fidgety in your investing, this may not be for you.
Finally, learn before you get involved. Read as much as you can from places like ValueWalk, CryptoWorldNews on Twitch. Check places like YouTube, but be aware that some people may be shilling for scams. See our recent Bitconnect article as a warning.