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5 Significant Things to Consider Before Making a Bitcoin Investment

Well, these days, the most popular cryptocurrency that has buzzed in the financial market and get the interest of numerous investors in bitcoin. It is a digital currency which mainly used online for making transactions. Nowadays, the particular form of money is used at almost all platforms, or you can say many platforms accept payments made by bitcoins.

For some people, bitcoin sounds risky or suspicious. But it is a safe and secure digital currency, and thinking about investing in it is a better idea. It is because the price of bitcoin is increasing when it is more used or demand by the people. Once you buy or invest a good amount in bitcoin, then you can sell it when the prices are high to make profits. The concept is very simple, i.e., for buying bitcoin, one must require a bitcoin wallet.

There are various types of wallets present, and among them, they have to choose the reliable, reputable, or safe. Also, people need to buy bitcoins from a reliable platform and then store them into a wallet. After then, they have to wait for the right time and then use a bitcoin exchange to buy or sell them to make profits through websites like bitcoin revolution

Considerable things before investing in bitcoin

All the things described herein the post are very useful and help people understand what is necessary to keep in mind when going for investing in cryptocurrency. So, everyone interested in investing should pay close attention and then understand the things to get positive results only.

It is a decentralized currency

You hear right that bitcoin is a decentralized currency. Any third-party system or government does not control the particular cryptocurrency. It is a public currency, and the price is based on the demand and usage of people using bitcoins.

For investing in bitcoin, people don’t require permission from the government or any central authority. One can buy it from any platform, store it in a bitcoin wallet, and then perform bitcoin trading accordingly. People can freely use it for buying services and goods or use it at online casinos as well. 

It is real money

all individuals must know that, however, bitcoin is a decentralized currency, so the clients use it for buying ventures or merchandise. Nowadays, the majority of the major places or platforms accept the payments made by bitcoin. It means that there is no need to require cash when you already invest in bitcoin. You pay via it as it’s a real currency with the help of your wallet.  

It’s unstable and unpredictable –

these two are the major properties of the same cryptocurrency, i.e., bitcoin. For predicting its price, one has to make use of the investment vehicles that are reputed and popular. The price valuations of the bitcoin may vary from time to time. Therefore, before investing, one should know everything about the future bitcoin investment. Investors need to put all the measures of cash they can stand to lose to limit the misfortunes later.

Know the buying, selling, and trading procedure of bitcoin

yes, it’s the right thing to deal with when you are interested in making bitcoin investment. Before going to perform any activity, one should learn the process of buying and selling such coins. It means that all investors must know that from where they have to buy, how they can sell bitcoins, and the trading process.

For performing bitcoin trading at a great level with perfection, one must require access into bitcoin wallet and bitcoin exchange. The wallet is used for storing bitcoins, and the exchange is used for making transactions.

Don’t put much money in exchanges

well, in the process of bitcoin trading, investors don’t have to leave huge money in exchanges. It is because as technology rises, the number of hackers becomes high. So, to avoid the risk of giving an advantage to them, one should be careful regarding money present in bitcoin exchange. 

All these are the crucial things for the investors to know before taking any step regarding bitcoin investment. 

Diana Dsouza , 2020-09-18 13:03:21

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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