The first half of 2018 was a rough time for Bitcoin. The value of this leading cryptocurrency dropped to $6,816. A dead drop considering the value of the coin was hovering around the $20,000 mark mid-December last year. Therefore, if you invested in Bitcoin in December 2017 you ended up losing about two-thirds of the money by April this year.
However, as is the case with Bitcoin, the value of the cryptocurrency started recovering by the end of April. In fact, it went on to rise 36 percent that month peaking at around $9300. For reference, if you had invested $10,000 on bitcoin at the beginning of April you would have secured a neat profit for $3,600 by the end of the month.
Is It an Opportunity Lost?
Definitely, yes. No matter what you are trading the best time to buy is when the market comes crashing down. However, unlike other investment units, Bitcoin’s market movements are somewhat drastic. For example, back in November 2017, the value of the coins increased 47 percent in a single month. It went from $6,750 on 1st November to a whopping a $9,916 on 30th November. In fact, it continued to grow the following month and reached $13,860.
It doesn’t take a genius to figure out that the beginning of November last year and 1st April this year were two of the most opportune times to invest in Bitcoins.
When to Invest in Bitcoins?
If you want to start investing in cryptocurrency, it’s important to realize that they are highly volatile. Back in December last year the value of the Bitcoin soared from $11,696 to almost $17,000 within two days. If you get the wrong end of the stick this can be really scary. This is why the first step is to have faith in the market and realize that fluctuations are a very much a part of the Bitcoin game. Seasoned investors know not to lose their nerves when the market crashes. They usually have the courage to put in more money to capitalize on these market slumps when everyone is busy counting their losses.
Once you come to terms with the drastic fluctuations, you need always remain updated on latest bitcoin news. Rely on a reputed Bitcoin news feed to understand market sentiments and investor predictions. When it comes to trading Bitcoins, news plays a very big role. Without a physical commodity to influence the price, the value of the coin is mostly dependant on the fundamental principles of supply and demand.
This means an onslaught of negative press can potentially cause investors to panic and dump their Bitcoins. This invariably causes the price of this cryptocurrency to go down, presenting an opportunity for you to invest. Even a seemingly small thing such as an expert predicting a positive shift in the market can have a huge impact. Recently, billionaire investor Marc Lasry predicted that the price of the coins is likely to reach $40,000 in the near future.
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