How To Prepare For Investing In Bitcoin ?
Following an unprecedented surge that lasted throughout most of 2017, bitcoin has become a very trendy investment commodity. For the first time, people really saw its potential in action, whereas for years we had only heard arguments about whether or not it could establish sustained value. And when bitcoin flirted with a $20,000 value in late November, a lot of people wanted to find a time to buy in.
As promising as bitcoin can be, however, it’s also been labeled one of the riskiest investments of 2018, on the grounds that it simply seems to be unpredictable. Even now, following a fairly significant crash from those late-2017 peaks, some believe bitcoin was a bubble that has burst and is now fading away slowly, and others think it’s going to surge to new highs. With the caveat that bitcoin is risky, however, it should still be acknowledged as a popular investment option – and strategy should still be discussed.
Should you be considering this risk – and we wouldn’t advise you one way or the other – these are some of the things you can do to prepare.
People have been trying to figure out what exactly influences bitcoin’s price for years now, and the answers are not immediately apparent. Because bitcoin is global, decentralized, and unbound by sweeping restrictions, it can evolve in different ways in different places. That said, some factors that influence the price have become clearer over time, and government regulations are at the top of the list. Government rulings that affect the trade of bitcoin can by extension affect the price immediately. As a hypothetical, imagine that the U.S. government suddenly made it illegal for Americans to deal in cryptocurrency. This would immediately remove a massive market, shrinking demand in a moment. Because of the possibility of scenarios like this, it’s important for anyone considering investment to study regulatory news closely.