Is now the best moment to exchange bitcoins? Will I get profits? And what should be done on my end? All these questions have been asked since the moment when bitcoin was first used for trading purposes on the exchange. Many things have changed, but these questions are still relevant for many.
And now, 11 years after the start of the first bitcoin trading on the bitcoin exchange, this issue went to the international level. There are already lots of analysts and experts who regularly try to find the optimal entry points. In this review, you will find out what factors make investments in bitcoin so profitable, why bitcoin holders prefer to keep it, rather than trade it, and what to do in your particular case.
Fundamental Background
As an investment tool, Bitcoin has recently begun to be used by many companies and corporations, media personalities, and ordinary investors. In addition, the beginning of 2021 has become fundamental in the crypto industry. It was at that moment that the institutional investors who were so awaited came to the market. As a result, a powerful foundation for cryptocurrencies has been created. The prospects are just amazing. Digital assets will simply not be allowed to depreciate because a huge amount of finances has been invested in them.
Unprecedented Growth and Not-so-Large Fall
Bitcoin surpassed the $65,000 mark on April 15, 2021. Interestingly, the new ATH was set one year and one month after the March crash when Bitcoin was worth less than $5,000. That is, the main cryptocurrency has grown 13 times over the year. This figure is impressive, agree?
Of course, there are cryptocurrencies that can generate much more profit in a shorter period of time. A simple example is Dogecoin, which has provided hundreds of crosses to its holders in just a few months. But let’s look at things realistically: Dogecoin’s story is the exception rather than the rule. Yes, the profit was really good, but in recent months, the market has stopped responding to news related to this token. So, its price is systematically decreasing.
According to the CoinMarketCap cryptocurrency rating, on September 1, the price of bitcoin stopped at $48,500, which indicates the growth of the cryptocurrency. Therefore, now, it is not the best time to exchange bitcoins; it is way better to do it the next time the rate falls. Why is it so?
- It is not the most profitable rate at the moment;
- The price for BTC is expected to change in the future;
- Long-term trading is known to be more profitable.
Conclusion
Summing up everything, it is worth noting that if you are still wondering whether it is a good time to exchange Bitcoin, we should answer that it is not the best moment. However, the crypto industry is evolving fast, so the more you think about the perfect moment, the more profit you lose. The more an asset is withdrawn, the more investors show that they are not going to sell it. Bitcoin holders prefer to store their digital money rather than trade it. This trend only encourages other market participants to also become long-term investors in bitcoin.
