Yes, investing in bitcoin can be a good idea

Gold standard of digital currencies

ethereum, bitcoin, Ripple, Litecoin, Dogecoin, Polkadot, Shiba Inu… Cryptocurrencies today number in the thousands. A constantly evolving sector in which, as everyone knows, Bitcoin (BTC) remains the most famous asset. And the most popular. Such a success that since its inception in 2008 it has become the gold standard for digital currencies, the price of most of which correlates with its own. This is how the oldest virtual currency convinces many investors who prefer it to others, considering it safer – at least less risky – than newer assets. So one thing is for sure: Bitcoin is a good place to start when you first consider investing in these cryptocurrencies. But not only.

Invest, but wisely

If for two years price spikes followed the most spectacular crashes, which drew criticism from many experts who consider such volatility too dangerous, then cryptocurrencies turned out to be encouraging in the end. And imposing myself little by little. Better: More and more people are predicting that BTC will soon become a safe haven. This is why bitcoin is seductive. Including those who strongly resisted him until now. As proof, one of his most violent detractors for a long time was the American investment fund JP Morgan. Recall, in particular, that in 2017, Jamie Dimon, CEO of JP Morgan Chase, called it a “scam” and even threatened to fire any employee who came to trade him. Four years later, the course changed: in July 2021, JP Morgan became the first major US bank to offer investments in BTC and other cryptocurrencies. An irresistible sign of the times that further proves the normalization process. And, therefore, the virtues of such investments, which, if well advised, can only bear fruit. Thus, Bitcoin is unique in that its supply is limited to 21 million BTC. Due to a very likely explosion in demand, it should become scarce, which will inevitably lead to an increase in its value. Recently, the same JP Morgan estimated it in the long run at about … $ 150,000!

Invest, but wisely

A word of caution: while the prospects for long-term profits are strong, let’s not forget that the market is still immature. Therefore, in order to invest in bitcoin, you will own an asset that is considered very risky. Therefore, advice: make a choice in favor of diversifying your investments. A wise decision, as you will not only reduce the risks, but also offset your assets with cryptocurrencies, which are certainly safer, but bring less profit. Thus, many experts advise investing about 10% of your asset portfolio if you decide to limit yourself to one bitcoin, and a little more if you want to be interested in other cryptocurrencies at the same time. In any case, keep in mind that specialized trading platforms can give you advice and help you buy, sell and manage your (future) portfolio. Among them, for example, Litebit offers more than 70 virtual currencies. The Rotterdam-based platform has won the Best Crypto Broker award multiple times. It stands out as one of the safest and most convenient platforms in Europe in this sector. Two values ​​that in the digital world have absolutely nothing optional!

Laurent Fialet