Bitcoin is highly volatile and is as likely to reach all-time highs as it is to collapse. However, that doesn’t mean that now is a bad time to invest. If you agree with those predictions, now might be a good time to get into bitcoin. If an investor thinks that the history of cryptocurrencies develops, then it’s okay to just avoid the asset class altogether.
You maintain full control of your account and can take over the transaction or stop copying a trader at any time. There are also some investment funds and trusts that are exposed to cryptocurrencies, which is a less risky way to invest than buying the coins themselves. It’s only a matter of time before more cities buy Bitcoin and soon after countries announce it. And if they haven’t already, maybe they have a reason why they’d rather buy in the future.
Market volatility is why investment experts recommend keeping any investment in cryptocurrencies at less than 5% of your total portfolio and never investing anything that you are not okay with losing. The average volume based on the time of day shows that the highest volume occurs around 10 a.m. ET and then gradually decreases until it peaks again around 8 p.m. ET.
Amazon isn’t the only tech giant branching out into cryptocurrencies; rumors are circulating that Apple will use some of its large cash reserves to invest in bitcoin. Putting your hard-earned savings into opposing asset classes is difficult when investors you admire say it’s a bad idea. While P2P lending is risky, it is a proven model for many years, while Bitcoin remains a much riskier investment that can go either way depending on many factors. Read about how cryptocurrencies are taxed around the world or how cryptocurrency investors have scored big with Portugal.
This opened up investment in Bitcoin to millions of users who previously didn’t have the confidence or skills to get Bitcoin, but can now buy it through a familiar interface. That said, it’s not a tangible investment like a stock or a bond, it’s not regulated, and sharp price fluctuations are common. Recently proposed legislation could make it easier for the IRS to find cases of tax evasion when it comes to cryptocurrencies, although investors should already keep records of any capital gains or losses in their crypto assets. This potentially indicates that investors were accumulating in “cash”, or at least crypto cash equivalents.
