Those that have been in the crypto space for a while have seen the highs and lows that cryptocurrencies, especially Bitcoin have gone through over the past year. While its price is more than 300% higher as compared to last year, slow economic growth and other reasons courtesy of a global pandemic have meant that Bitcoin’s price hasn’t been able to soar to its true potential.
While this has many new and experienced investors excited, and for good reason, the volatility of the crypto space has left many newbie investors asking if this is really the right time to invest in cryptocurrencies and Bitcoin in particular.
There are two answers to this – the first is – yes. According to the pundits of crypto investments, now is the best time to invest in Bitcoin and other cryptocurrencies as they are likely to experience a surge in value. However, if you are one of those people who are still on the fence when it comes to investing in Bitcoin, the following lines should help clear any misconceptions.
One of the first things that new investors have to ask themselves is whether or not they have enough savings so that they can get through at least a few months. Of course, it is not a good idea to make a large investment in Bitcoin if you are cash deficient. But for those who have enough money to go around, along with a fat emergency fund, then this is one of the best times to invest in Bitcoin, and here are the reasons why:
Low Economic Activity
It goes without saying that the COVID19 pandemic and the lockdown that has become pretty much part of our lives is currently in full swing (except, maybe for those in China). This means most businesses both large and small have hit the pause button for now. This, in turn, is not only responsible for bringing down the economy in many countries but is driving the markets down as well.
While this may look like a bleak time for any sort of investment, those who are smart know that now is the best time to invest in Bitcoin because of this dip in the prices. As Warren Buffett puts it, “Be brave when others are fearful.” Investing in Bitcoin or any other cryptocurrency now while the prices are still low almost guarantees a profit in the long term as the market is all but set to risk, resulting in massive gains.
More Time to Do Your Homework
Being stuck within the confines of the four walls of your home does not mean the end of the world. New investors in the cryptocurrency space can make good use of this time off to research more on cryptocurrency options, the best Bitcoin wallets, and the like, and compare features. For those who are interested in growing their cryptocurrency portfolio and making long-term gains, better research is the only way to equip them with the knowledge they need to make the best decisions based on what they have learned.
It is easy to see that Bitcoin is the future of digital payments, which in turn, is going to help drive Bitcoin’s popularity even further in a post-pandemic world. If you are new to Bitcoin trading and want to find out more about investment techniques and cryptocurrency security best practices, and more, be sure to get the Bitcoin community app today which will equip you with all you need to know about Bitcoin.