Bitcoin has had it hard in the last few months. The leading cryptocurrency saw its price plummeting by 40% after its record high of $65,000 in April this year.
At the moment, it seems like you can hardly ignore the cryptocurrency phenomenon, whether a crypto investor or not. For that reason, you do not have to be a Bitcoin investor to learn something from its recent roller-coaster fluctuations. Here are three lessons from Bitcoins swings that can improve your investment game.
Short-term Gains Are Risky
You know that the stock market is for those interested in a long investment game. For that reason, the “get-rich-quick narrative” with the current trending investment opportunity can be appealing. You can find yourself fantasizing about the BTC’s meteoric rise. What if you had invested in Bitcoin some five years ago? How much profit could you have earned?
However, their recent Bitcoin drastic declines prove that there is no such thing as get-rich-quick quick in the crypto market. Moreover, short-term gains can be hazardous.
Though, this is not to say that Bitcoin will not plunge or it is a worthless investment. Nevertheless, buying Bitcoin to get rich overnight is something you should not dream of as a crypto fan.
Not All Promising Investments Are Safe
Celebrities such as Elon Musk believe in the power of technology to change the world. These individuals have been promoting cryptocurrencies via social platforms such as Twitter. However, not all investment opportunities that seem promising are safe.
There is no doubt that Bitcoin is vital in our future economy. There are chances that the coin might go mainstream somedays to come, earning early investors enormous returns. However, remember that the crypto market is highly volatile. You can reap losses in this lucrative space.
It Is Challenging to Time the Crypto Market
Over the year, Bitcoin has witnessed wild swings, and the recent drop is not something new for this digital asset. In 2021 alone, the coin has seen many steep price declines. Although timing the prices to buy and sell can sound like the best idea, practicing it is nearly impossible.
Cryptocurrencies took the market unpredictability thing to another level.
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