People are madly investing in bitcoin nowadays. The concern is not for the investors who are proficient in bitcoin or any kind of investment or trade. But, it is very risky for new investors to get into the market without knowing the Best Trading Option actual facts of it. Checking the volatility of the market is the primary requisite
Volatility is that feature that indicates frequent ups and downs of an asset. And, the intensity is so high for bitcoin. Bitcoin started getting value in October 2013. Till January 2017 it was under $1,000. After that bitcoin’s value started gaining height and in December 2017 it reached $13,000 for the first time. After that, with a sudden swing bitcoin again reached $12,000 in January 2019. By the time so many ups and downs happened. In the middle of 2021 bitcoin’s price skyrocketed to over $64,000. But, again at the beginning of 2022, its value decreased to $ 28,000.
1. Unpredictable future:
You might have heard about some experts’ predictions on bitcoin’s price in the future. Well, there are some ways to guess the price movement that an experienced and skillful person can do. But, you have to understand that they are all predicting, and not assuring.
When in 2021 bitcoin reached its all-time high, many investors hoped that the price of the cryptocurrency will continue rising. In this home, so many people also invested at that point in time. But, unexpectedly, the price fell down in the year 2022 and the investors of 2021 are under the water right now.
2. Risks associated with trading:
As the market is not stable, there are risks involved in bitcoin trading. As previously said that 2021 investors are in deep tension 2022, this is the result of volatility. Think if you had invested all your savings in bitcoin in the middle of 2021, what would be your feeling in 2022. So, risks are always associated there. That’s why experienced investors suggest investing only less than 5% of your life savings into bitcoin.
3. The current value is getting down:
Bitcoin’s valuation is on a downfall after October 2021. In the last 2-3 months, the price went so down that was never expected. On 28th May 2022 the value was $28,600. Some experts, at that point in time, are saying that the price will increase and we can also witness that with the current price of $31,800 on 1st June 2022. But on the other hand, some are saying the price will become as less as $10,000 in the middle of 2022. So, It is very tricky to understand whether to invest or not. To mitigate the risk you can only do research and study how to understand the price of bitcoin and how to play with the volatile market to earn profit.
4. Not yet legalized by so many countries:
One thing every new investor must know is that bitcoin is not legalized by so many countries yet except for some. But, there is good news tax is been going to levy on that cryptocurrency and this can be the way to legalization. There are many countries like Japan where the ideas of Bitcoin has been rampant, but in case of UK or USA, there has been a slow yet steady growth.
5. Prone to online fraud:
Bitcoin circulates on the online platform and the whole network is digital. So, there are chances of fraudulent activities. Though bitcoin’s cryptographic encryption technology assures you the safety, remember that hackers are also getting updated day by day. The keys and all the wallets should be saved from any kind of fraud or phishing activity.
6. Fake platforms identified:
There is an uncountable number of bitcoin exchange platforms today. Some are coming in the form of mobile applications too. Finding the right platforms can happen only when you go through some of the branded websites, and then find out if they are fake, or whether they give you the anticipated return. So, take care that you chose the old, reputed platform that has good customer reviews. You can also explore BitIQ, where you will get a detailed overview on cryptocurrency market. Moreover, this is also a trading platform where you can invest safely.
Conclusion:
So, now you have a much better idea about the real world of bitcoin. It will surely help you a lot in your next investment as you will be more cautious and take every movement with care and proper knowledge.
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