Things to consider for long-term bitcoin investment

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Most investors are putting their money in bitcoin because it is all hyped up. Also, they are reading articles online to know the top 5 ways to add bitcoin to an investment portfolio that every investor needs to have.  Undeniably, bitcoin attained that prominence that no investment asset could attain in a short span, but does that mean bitcoin is a great long-term investment asset?

 In short, investors are putting their money in bitcoin for two reasons firstly, it is all hyped up by media, and secondly, it is all about the digital currency, which could be easily converted into dollars and have a massive use case as an investment asset. So let’s discuss things to consider for long-term bitcoin investment. 

Bitcoin is the best investment asset for high returns in less time. It has outperformed almost every other investment asset. Undeniably, bitcoin is giving good returns and high ROIs to investors, but that doesn’t mean bitcoin is a great long-term investment asset. 

Investors are putting their money into bitcoin because it has generated massive returns in a short time, but does that mean it will generate high returns in the long term? So, let’s discuss things to consider for long-term bitcoin investment. 

Reasons to invest in bitcoin:

1. Bitcoin is an investment asset for the first time since its introduction, which doesn’t mean it will generate high returns in the long term. 

2. Bitcoin is based on blockchain technology, which doesn’t mean it will be helpful in the future because of massive technological advancements over time. 

3. Bitcoin has limited use as an investment asset due to limited use cases and lack of regulation that automatically makes bitcoin an illiquid asset. 

A Safe cryptocurrency wallet:

Bitcoin is still new to the vast majority of people, and investors are still reluctant before making their first transaction with bitcoin. Bitcoin requires software that will generate a set of private and public keys, but if you lose your private key, you lose your money. 

Therefore, it is highly imperative to have a safe cryptocurrency wallet that will secure your investment. Electrum is one of the best bitcoin wallets in terms of security, reliability, and speed; you can read more about it here. 

If you are looking for a long-term investment in bitcoin, go for a hardware wallet, which is highly secure and the best thing you can do to keep your investment safe. If you choose a paper wallet, there are many things to consider for long-term bitcoin investment. 

  • Bitcoin address – You will be given an address that you need to share with others, who will transfer money into your account.
  • A private key is an alphanumeric number, and copy-paste it very carefully because if you lose it, no one can recover it.      
  • A seed phrase combines all the information mentioned above (Private Key, Public key, and seed phrase).

 A hardware wallet ensures your cryptocurrency is secure and in your control. Still, hardware wallets are often bulky, slow, and not as user-friendly as a mobile phone or desktop computer. In addition, the six factors of Multi-Signature transactions are also significant for securing your bitcoin investment.

Choose A Perfect Time to Make Your Investment!

Investors need to consider the right time for making their investment. When bitcoin was at its peak, investors were making massive investments in bitcoin. There are only a few days in the month when you can make your investment which is the right time to do so, but most investors don’t have the patience to wait for a long time. So how to choose a good time for your bitcoin investment?

  • Watch the trend
  • Consider the current market conditions and compare them with the last few days and weeks.
  • If there is a significant fall in price, wait for a few days for the price to stabilize, but if there is any significant rise or slump in price, wait till it settles down.
  • Major bitcoin exchanges like Bitfinex, Poloniex, Bitstamp, and much more have 24/7 trading hours, so you can quickly go for around-the-clock trading but keep in mind that if you are making a short-term investment then, only day trades can be profitable.
  •   If you have already made a few investments in bitcoin, then wait for a few days to make your next investment, keep in mind that if the value of bitcoin keeps rising, then only wait for some time to make your next investment.
  • Keep a close eye on the charts, and earlier you see that bitcoin is overvalued or undervalued, then invest in it, but what if you don’t know how to read the charts then it is always better to go with market experts’ recommendation.

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Written by Guest User