If, somehow, you’ve only heard of one cryptocurrency, it’s probably Bitcoin. It is the biggest cryptocurrency — it currently has a 40% share in the total cryptocurrency market cap! It is the oldest cryptocurrency and it still dominates in the market. So, if Bitcoin continues to increase as it did in 2017, then investing in Bitcoin might be a good idea for 2021.
The price of Bitcoin changes a lot every day, and has seen many highs and lows over the last few years. Take a look at the following chart and you will see just how much the price changes.
The price of 1 Bitcoin has gone from around $76 (07.09.13) to as high as $20,000 in December 2017. But then, after Bitcoin reached its highest point in December, the price of Bitcoin dropped to around $6000 in February 2018 and has been fluctuating ever since. It’s crazy!
With the price changing so much in such a short space of time, how do you decide what the best time is for investing in Bitcoin?
Well, we can try to find the answers by looking at some important past events — when the price went up or down by a large amount.
- One major event was when Bitcoin split into two cryptocurrencies — Bitcoin and Bitcoin Cash. This happened on August 1st. Investors who knew about this invested their money before the split and made huge profits, almost doubling their investment!
- The price of Bitcoin dropped to around $10,000 in January 2018, almost half of the $20,000 it was worth in December 2017. Many investors became worried at this point and started selling their Bitcoin. This caused the price to fall to around $6,000 in February 2018.
If you’re interested in obtaining Bitcoin, you can easily do that using Coinbase or Binance. Both of them are highly secure and reliable.
If you want to invest in Bitcoin then you need to stay up to date with the latest news and trends around Bitcoin. When news is released about a new technical improvement, you might want to think about buying Bitcoin. If there is a huge fall in price of the cryptocurrency in question, then that too might be a good time to buy Bitcoin because you can buy it at a low price.
If you have already decided to invest in cryptocurrencies, then it might be a good idea to start by investing in Bitcoin. Even though you have missed the first major opportunity to invest, investing in Bitcoin could still be a good idea.
It all depends on whether or not you believe in the future of Bitcoin. If you’re a believer, you should think about investing in it. If you’re not, then I recommend that you stay away from it. It’s the same as with any other investment!