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Is Bitcoin a Good Investment?

Is Bitcoin a Good Investment?

Knowledgebase
22/06/2020 by Koinal
619
Bitcoin is a leading digital currency created by a group of developers in 2009. Operating under the name Satoshi Nakamoto, they conceived the idea of a digital replacement for government-issued money. They solved the problem of authenticity by proving the digital currency through a powerful system of decentralized ledgers called a blockchain. The blockchain confirmed the existence of the digital currency and supported transactions using Bitcoin.
Is Bitcoin a Good Investment

Buying and selling Bitcoin or other digital currencies was sometimes difficult. Cryptocurrency exchanges sprung up to accommodate buyers and sellers. While investors could buy Bitcoin and other cryptocurrencies on exchanges such as Binance, the exchanges often required special banking arrangements, wire transfers, or cryptocurrency. There was a divide between digital transactions and transactions using traditional currency.

Koinal has bridged the divide between the digital exchanges and the mainstream style of investing. Koinal partners with Binance and other leading exchanges to offer a convenient portal for using bank debit and bank credit cards to purchase cryptocurrency.

The Vast Potential for Growth

Cryptocurrency offers potential for use as a medium of exchange and as an investment. There are a growing number of retail merchants that accept Bitcoin for purchases. The increased use of Bitcoin, or liquidity, increases its value as a substitute for money. Bitcoin has also demonstrated the benefits of cryptocurrency as an investment vehicle.

The initial price of Bitcoin was less than one cent. Within three years, the price swelled to $1.00. Between 2011 and 2013 the price grew to $266.00. During the calendar year 2013, the price rose from $350 to $1,242.00. In 2017, Bitcoin passed the $5,000 mark and rocketed to a peak of nearly $20,000.00.

Bitcoin has gained and fallen in wide swings over the course of its existence. The soaring increases have demonstrated its potential as a lucrative investment. The steep declines show that the investment has risk. Taking a long-term view, Bitcoin clearly has gained value and established a place in global finance and trading.

Balancing an Investment Strategy

There may be many ways for investors to view a bitcoin investment. Like any investment, one must look at the risks and the rewards. Cryptocurrency is not like government-issued money. Traditional money has a fixed value and it may buy the same value wherever one uses it. Cryptocurrency has a unit value and a separate market value that can change. While one Bitcoin will remain a single Bitcoin, the value can change and increase. Unlike fiat currencies, the value of cryptocurrency can rise, and its value is only limited by the market.

Many investors seek to hedge against unexpected downturns in the markets by diversifying their portfolios. Cryptocurrency has features that are unlike traditional investments in stocks and bonds. Bitcoin or other cryptocurrencies may help some investors reach their goals. If your strategy includes investing in Bitcoin, Koinal is a convenient, accessible, and secure platform to purchase digital currency.

Cryptocurrency Adds Flexibility

Flexibility is an asset for investors; they can take advantage of market situations by acting quickly. In times of market volatility, flexibility can help create gains and avoid losses. Many cryptocurrency exchanges have complicated processes for converting cash to cryptocurrency. These include long wait times, transaction limits, and slow delivery.

Koinal offers a platform to buy and sell Bitcoin in convenient amounts using bank credit and debit cards. Our customers can quickly react to opportunities in the marketplace to buy or sell Bitcoin. The high levels of convenience and control will assist investors in managing risk and market volatility. Using Koinal services, investors can maintain the flexibility to react to the market and carry out their investment strategies.

Balancing an investment portfolio should include all the options to guard against volatility. Diversification is an established method of reducing risk. Cryptocurrency does not rise and fall in a direct link to other types of investment. It does not depend upon actions by central authorities like the Federal Reserve or any government agency.

Working through Koinal, buying Bitcoin and other leading currencies can be as easy as buying a traditional security or investment instrument. You can buy bitcoin using a bank credit or debit card in a safe and secured transaction. Buyers get instant delivery to their specific digital addresses.

Bitcoin Investment History

When introduced in 2009, Bitcoin might have been an easy investment choice. The initial price in the early years was under $50 US. When viewed over the course of its existence, the initial investment would have provided a stunning level of return at its height of about $20,000 US.

Most investments involve risk, and investments with high potential typically involve a high level of risk. Investors must always use caution and measure the extent to which they can manage a volatile investment. Bitcoin has had periods of relative stability and steady growth. The large market capitalization of Bitcoin suggests that it has wide acceptance and a growing number of users and owners.

Comparing the Bitcoin Investment

Is Bitcoin a good investment? The answer depends on one’s comfort level with managing risk. When deciding whether to invest in Bitcoin, the dynamics are much like any other security purchase. When is Bitcoin a good investment? For many investors, Bitcoin can add a manageable level of risk with a high-reward potential. Koinal offers safe, simple, and easy ways to invest in Bitcoin using bank credit and debit cards.

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