In recent live cryptocurrency news,you’ve probably observed the hype waxes and wanes. Cryptocurrency investing might seem confusing and late when the value of coins fluctuates. Determining your risk tolerance and the type of crypto investor you want to be is critical.
Before we begin, keep in mind that all investments involve risk, and that big gains frequently entail significant risk and volatility. Bitcoin, like all cryptocurrencies, is changing. There are hazards, unknowns, and unpredictability in this new and emerging field. The risk tolerance and risk management of any investment strategy, including Bitcoin and cryptocurrencies, should be considered. Now let’s look at what you should consider when answering this question.
What type of cryptocurrency investor do you consider yourself to be?
Is it too late to invest in crypto? Is it too late to be a crypto investor? Nick Maggiulli, COO of Ritholtz Wealth Management LLC, says there are bitcoin traders and believers (those who hold). Some critics are leery of the whole enterprise. Cryptocurrency is seen as a long-term investment. According to Richard Smith, CEO of the Foundation for the Study of Cycles, “cryptocurrency will be the foundation for a new internet.” Much more is to come, so now is not the time to buy bitcoin, and this pullback may be a wonderful purchasing opportunity.”
However, the prospect of regulation — or lack thereof — can deter investors. Some are worried about China’s crypto ban in favour of its own coin. China produces more than half of the world’s Bitcoins, hence the country’s crackdown on mining is unknown. The Indian government has expressed interest in organising a group to explore crypto regulation.
What About Bitcoin in Particular?
Bitcoin was worth $1 in 2011. Ten years later, and as of this writing, the crypto is worth over $42,000. With this information, it’s safe to expect the coin’s value will continue to climb. No way. Its value is based on market tremor.
Some claim it’s too late to invest in Bitcoin because governments all around the world are cracking down on it. Fear that governments may ban currency acceptance and production, as China has begun to do.
Also, Bitcoin has no value as a money or a store of value, according to doubters.
Is that to say it’s too late to invest now?
The answer is the same as when it comes to stocks. Yes, always buy stocks. If the world looks to be ending, or if equities appear to be in a bubble, now is the time to purchase. Even a boring market is a good time to buy stocks.” But if you’re concerned about missing out on Bitcoin, Forbes advises you to hold off.
Because if you allow FOMO to take hold, the following will happen…
Rather than rushing into Bitcoin because it’s trendy, the Forbes columnist advises being strategic in your investments. This implies looking beyond Bitcoin. Not that investing in Bitcoin is a bad idea. Ultimately, it comes down to your comfort level with risk and your willingness to take it. This isn’t like the stock market, and its volatility can be influenced by several factors, such as Elon Musk stating that Tesla no longer accepts Bitcoin as payment.
Whatever you decide, take a moment to pause and reflect before acting.