Many of us are struggling to make ends meet while others add to their financial independence and “retire at 40” plan. This influx of money is all due to the boom of cryptocurrency. Cryptocurrency has certainly proved its worth to the world, and people see it as a fruitful investment.
In May 2011, Bitcoin was selling at approximately $3.50. So if you had invested only $500 back then in crypto, you would own 286 Bitcoins. By April 2021, Bitcoin was trading at $54.680. A decade later, you would have made over 7.5 Billion U.S. Dollars, given that you kept your money invested. Isn't that what everyone wants?
While cryptocurrencies are making people richer by the minute, not all investors can reap their benefits. So how likely is it for you to get rich with Bitcoin?
Understanding the Risk and Rewards of Bitcoin Investment
The top cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, have soared by 300%, 1500%, and 19,000%, respectively, in the past year. With provable growth, it was easy to lure in more and more investors. However, it is essential to remember that with great potential comes greater risk. The past statistics are surely promising, but they do not represent the fact that cryptocurrencies are highly volatile and high-risk investments.
The crypto market has been on the rise but also has dropped significantly numerous times in the past. In the past month, Bitcoin has seen its value drop by 26%. There is such a big
window for fluctuation in the cryptocurrency market because there are almost no key price indicators that make analyzing and predicting the digital currency market easier.
Getting Rich with Bitcoin
Currently, the world is divided into people who have already invested in the crypto market and people who are reluctant because of known and unknown risks. Last month, the business tycoon Elon Musk bought one and a half million dollars' worth of Bitcoin. The move heavily affected the crypto market.
However, due to the market swaying both ways in recent years, getting rich with Bitcoin mainly depends on your ability to bear the risk. Investors fear easily with a slight dip, and they are influenced by the exaggeration on social media and blogs. They pull out their money too early when it can bounce back in a matter of days.
Investing in Bitcoin is a gamble you should take only when you have sufficient savings for at least six to eight months without being in debt. Other steps you can take that guarantee you returns are:
- Choosing the correct broker
- Picking the best crypto exchange
- Choosing the right wallet to ensure safety for your money invested
Bitcoin is the first-ever cryptocurrency, and more than a decade later, it still is the most reliable one. Although it has seen its fair share of investment burning up, it rises higher every time. Given the unpredictability of the crypto market, a single Bitcoin may sell at $100,000 in only a couple of months.
There is no magical way that ensures profits on your Bitcoin investment. However, you can get rich with bitcoin if you make smart decisions and put in time and effort.