What to Invest in After Bitcoin (Is Bitcoin a Worthwhile Investment?)

08/17/2023 15:59 • Blockchain Buzz • 109 views

What to invest in after Bitcoin? After experiencing a bull market, it is now a good time to buy in. Many people may wonder what to choose if they don’t have enough money or time to invest in Bitcoin. In my personal opinion, the simplest choice would be “dollar-cost averaging.” As we have mentioned before, dollar-cost averaging is a relatively safe asset allocation tool. Therefore, I see Bitcoin as a very secure investment. However, at this point, one must consider its inherent risks as it does not have the same volatility as stocks.

Therefore, when making investment decisions, it is important to consider both risks and returns. For example, when you find a coin, you should first manage the risks and then sell it, ensuring the safety of your principal. However, this scenario is unlikely to happen. Moreover, many investors would not do this, which is quite laughable – once you know where its value lies, you are sure to suffer losses. Another point to note is not to panic in a bear market, as it is easy to become the one being trapped. For large funds and retail investors, such operations are often not worth the investment. “Consistent wins” are the most important thing, and stability can support price increases.

Is Bitcoin a Worthwhile Investment?

In the past few months, the cryptocurrency market has undergone significant changes. The price of Bitcoin has risen from around $22,000 on January 7th to nearly $44,000 at its peak. Although the price of Bitcoin is still in an upward trend, unlike the bull markets of 2017 and 2018, this downturn may be a temporary event – when the global economy was in a very severe situation.

However, this time the downturn did not surprise or worry investors because it created fear and a lack of hedging ability. “If I spend all my time on investment, ‘you don’t know what the future holds.’ If you really want to get involved, don’t rush to make any meaningful investment decisions.” However, the situation seems to have changed now: because Bitcoin is digital gold rather than a store of value, its valuation will become more complex and expensive. “We are going through an exciting process,” he explained. He also mentioned the recent price volatility of Bitcoin: “Bitcoin has become an asset class.”

As more and more people allocate cryptocurrencies in their portfolios, Bitcoin is seen as an attractive technology challenging traditional financial institutions.

Therefore, despite this, some people still see Bitcoin as a long-term diversified asset type. However, these investors are aware of the risks and express concerns that Bitcoin could lead to “disastrous losses” and other potential problems. “It is a major question when considering whether Bitcoin can appreciate like stocks.” “This is a technological breakthrough,” or “real change,” which is even more likely to happen than many people expected. On the contrary, they are actually just a small part. In addition, according to Bloomberg’s data, most analysts expect Bitcoin to reach peaks between $100,000 and $200,000 before the end of this year. However, this prediction is not accurate for those who are unaware of this possibility, as their average return is only 5% to 10%.

On the other hand, for those who are hoping to achieve higher returns through Bitcoin, it means they can buy more BTC.

Original source: zycrypto, compiled and translated by Blockchain Knight, English copyright belongs to the original author, please contact the editor for Chinese republishing.

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What to Invest in After Bitcoin (Is Bitcoin a Worthwhile Investment?)

Is Bitcoin a Worthwhile Investment?

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