If you’re thinking about buying Bitcoin right now in 2024. Bitcoin (BTC), the largest cryptocurrency, has been doing well. It gradually went up in 2023 and hit a new high of over $70,000 in March 2024.
It is very unpredictable and can change value quickly. It’s a high-risk investment. In this guide, we provide advice on Bitcoin investment and help you determine whether now is the right time to buy BTC.
Quick Insights
What is Bitcoin?
Bitcoin operates on a decentralized Bitcoin network without a central authority, like a bank. It was created in 2009 by an anonymous person or group known as Satoshi Nakamoto.
Bitcoin is earned by “miners” who use computers to verify transactions. It can also be bought on various online exchanges. It’s the first and most famous leading cryptocurrency to the creation of many others.
Is Bitcoin is good investment?
- Bitcoin is a digital money that you can use to buy and sell things, just like regular money.
- When it first started in 2009, not many people knew about it, so it wasn’t worth much. But as more people learned about it and started using it, its value went up.
- Around 2017, a lot of people got a growing interest in Bitcoin because its price went over $1,000 for the first time.
- Some people thought it would keep going up, so they bought some Bitcoin and planned to keep it for a long-term investment.
- Others saw it as a way to make quick money, so they started trading it like stocks, buying and selling it often to try and make a profit.
- The price of Bitcoin went high, reaching around $69,000 in 2021. But then it crashed, which means the price dropped a lot, in 2022.
- It went from around $47,000 to about $15,000 in just a few months. But then it went up again in 2023, reaching around $31,000 before going back down.
- In early 2024, the price of Bitcoin went up a lot because people thought something called Bitcoin Spot ETFs would be approved.
- When they were approved, meaning people could invest in Bitcoin through these special funds, the price went even higher, over $65,000.
- Bitcoin’s price can be a bit unpredictable going up and down quickly. It’s influenced by stock market changes and big news.
- People investing in Bitcoin watch the news closely to predict its price movements and manage their positions in Bitcoin effectively.
Is now a good time to buy Bitcoin
Is it a good time to buy Bitcoin? With the increasing interest in Bitcoin as an investment, many are pondering if now is an opportune moment to buy Bitcoin.
Historical Performance
Bitcoin has consistently outperformed digital assets since its inception in 2009. Its growth trajectory includes significant milestones, from being virtually worthless to trading at approximately $30,000. This immense growth, while promising, also highlights its volatility.
Technological foundation
Bitcoin’s underlying blockchain technology enhances its value proposition. It offers a transparent, decentralized ledger system and facilitates fast, low-cost cross-border transactions, making it a potential medium of exchange and store of value.
Limited supply
Bitcoin’s supply cap of 21 million coins and predictable issuance schedule make it resistant to inflation. This finite supply, combined with increasing demand, can drive up its value over time.
Decentralization
Bitcoin’s decentralized nature ensures that no single entity controls it, reducing the risk of manipulation and censorship. This independence is a key attraction for many cryptocurrency investors.
Current market conditions
Bitcoin trading is currently at a bear market discount, approximately 55% below its all-time high of over $68,000. Historically, purchasing Bitcoin during such downturns has yielded significant returns during subsequent bull cycles.
Approaching halving event
The next Bitcoin halving event BTC is expected in Q2 2024, reducing the mining reward to 3.125 BTC. Previous halving events have triggered substantial price increases, suggesting that now might be a strategic entry point ahead of the next potential bull run.
Inflation hedge
Bitcoin is increasingly seen as a hedge against inflation, particularly in countries experiencing high inflation rates. Its ability to retain value over time makes it an attractive option for preserving wealth.
Market liquidity
Bitcoin’s high trading volumes and market capitalization of over $550 billion provide ample liquidity, making it easy for regular as well as institutional investors to enter and exit positions.
Expert predictions
Some industry experts predict that Bitcoin significant long-term growth, with potential prices reaching $1 million per Bitcoin within the next decade. These predictions, while speculative, highlight the bullish sentiment surrounding Bitcoin’s future.
These factors influence Bitcoin to be a good time to buy Bitcoin, especially if you have a long-term investment horizon and are prepared for its inherent volatility.
How to invest in Bitcoin
As the crypto industry continues to evolve, investing in Bitcoin and cryptocurrency has become increasingly accessible to both seasoned crypto investors and newcomers alike.
Bitcoin Exchange-Traded Funds (ETFs)
Spot Bitcoin ETFs track the current price of Bitcoin. When you buy shares of a spot Bitcoin ETF, you’re essentially investing in Bitcoin’s current value. They trade on major stock exchanges and are available through traditional brokerage accounts.
Spot Bitcoin ETFs make it easy for regular people to invest in Bitcoin. They also open up new investment options for retirement accounts and other plans.
This is different from Bitcoin futures ETFs. Those are like bets on what Bitcoin will be worth in the future, not what it’s worth right now. They’re a bit more complex and involve predicting future prices.
Traditional financial stockbrokers
Some traditional investment brokers like Robinhood, Webull, TradeStation, and Fidelity also offer Bitcoin trading. Just like buying stocks, you can purchase Bitcoin through these platforms.
Cryptocurrency exchanges
These are online platforms where you can buy and sell Bitcoin. Examples include Kraken, Coinbase, and Crypto.com. Each crypto exchange has its fees and rules, so choose carefully.
Bitcoin ATMs
These are like regular ATMs but for Bitcoin. You can find them in places like convenience stores. You can buy and sell Bitcoin using these ATMs, but make sure to check the fees before you do.
Peer-to-peer money transfer apps
Apps like PayPal, Venmo, and Cash App allow investors to buy Bitcoin directly within the app. You can store, send, and sell Bitcoin using these apps, which can be convenient if you’re already familiar with them.
Wallet software
Some apps and online services allow you to buy and sell Bitcoin directly within the app. These can include crypto wallets, games, or other services that use blockchain technology.
Keep in mind that using cash in these apps might involve using a third-party service like MoonPay, which could have higher fees but quicker transactions.
Conclusion
The combination of its historical performance, technological foundation, finite supply, decentralization, current discount, upcoming halving events, inflation hedging potential, market liquidity, expert predictions, and increasing institutional adoption in financial markets make a compelling case.
Additionally, owning Bitcoin, which is one of the most significant assets in the world, can drive growth in your crypto investment portfolio.
However, it’s important to conduct thorough research and possibly consult with a constitute financial advice to align this investment with your financial goals and risk tolerance.
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Frequently Asked Questions
1. Is Bitcoin real money?
Bitcoin (BTC) is a cryptocurrency designed to function as money and a payment method without the need for central authorities like banks.
2. What are the benefits of investing in Bitcoin?
- Bitcoin has shown continuous growth and increasing value.
- It often surpasses previous all-time highs, showing strong recovery ability.
- Easy to trade for cash or assets like gold.
- Limited supply reduces inflation risk compared to traditional currencies.
- Simple trading process for investors of all experience levels.
3. Is it good to hold BTC?
Yes, Bitcoin holding can be good, but start small and focus on well-known cryptocurrencies like Bitcoin and Ethereum. These are generally less risky and solve real-world problems, making them good for long-term investments1. Is Bitcoin real money?
Bitcoin (BTC) is a cryptocurrency designed to function as money and a payment method without the need for central authorities like banks.
2. What are the benefits of investing in Bitcoin?
- Bitcoin has shown continuous growth and increasing value.
- It often surpasses previous all-time highs, showing strong recovery ability.
- Easy to trade for cash or assets like gold.
- Limited supply reduces inflation risk compared to traditional currencies.
- Simple trading process for investors of all experience levels.
3. Is it good to hold BTC?
Yes, Bitcoin holding can be good, but start small and focus on well-known cryptocurrencies like Bitcoin and Ethereum. These are generally less risky and solve real-world problems, making them good for long-term investments.
