If you are considering a Bitcoin investment, it’s important to understand how the system works. First, you need to choose a broker who has a reputation for being reliable. Also, it’s essential to use a regulated broker. You want to avoid buying bitcoin from an exchange that is unlicensed, as these exchanges offer no regulatory protection.
An experienced investor will look to time the market, actively placing trades. For instance, they may invest in Bitcoin when the market is rising and then offload their position when the upward trend reverses. They may also wait until the market has recovered before entering a new position. Beginners, on the other hand, will be better suited to a longer-term investment approach, investing in Bitcoin and holding the digital asset for several months or years.
In order to avoid getting ripped off, you should always do your homework. Investing in Bitcoin should be done responsibly and only if you’re sure you can make a profit. It’s important to keep in mind that you shouldn’t invest more than 1% of your monthly income. You should also consult with a financial advisor before investing in Bitcoin.
In the past, Bitcoin has grown in value consistently. By late 2017, it had nearly reached $20,000 before plummeting to around $5,000. A year later, the mass media was quick to write it off, but Bitcoin rebounded in 2020 and broke the $20,000 barrier. In December, it reached $40000. During early 2021, it even reached $60000!