“Best Bitcoin Investing Strategy for 2021” – Content:
- Best Bitcoin Investing Strategy for 2021
- The reason for the Bitcoin crash
- Why did Bitcoin jumped and crashed the whole time?
- When does the next bubble burst?
- What are the trends for Bitcoin in 2021?
- Our successful Bitcoin investment strategy for 2021
- Tips for Bitcoin investors
Best Bitcoin Investing Strategy for 2021
So a lot of investors have stopped investing in crypto because they think it is a fraud. But they just invested in something that they have no clue about. And of course, it is not a scam. It is actually the opposite, it is an opportunity that just started. But before I can tell you the best Bitcoin investing strategy for 2021, first, we have to analyze what happened.
The reason for the Bitcoin crash
The Bitcoin crash wasn´t a big surprise. They blame scams and regulations for the big drop. They might have an effect, but that is not the main reason.
Many smart investors and crypto experts predicted the drop. They made a lot of money and left the sinking ship. But the majority of the people that invested in crypto lost most of their portfolio value.
7 years after the introduction of the Bitcoin whitepaper, the value of a coin crossed the 1.000 Dollar line for the first time. It then rallied to around 3.000 Dollar and dropped to 1.900 Dollar. After that, it continued his upward trend to 4.500 Dollar and, after that, dropped to 3.700 Dollar in a short amount of time. Shortly after Bitcoin skyrocket to around 20.000 Dollar. Then it crashed and a long-term downtrend followed. So Bitcoin crashes were not something new. It was a simple repeat of the market.
Why did Bitcoin jumped and crashed the whole time?
So Bitcoin, Ethereum and other cryptocurrencies grew mostly because many uninformed people tried their luck with the purchase of cryptos. Obviously, they are the once the lose the most when the bubble burst. It took Bitcoin 7 years to gather enough excited people to create the first crypto bubble.
When does the next bubble burst?
Bitcoins downtrend continued the past year. For now, it is holding quite well. So it looks like the hope of making big profits and getting rich fast is rising again. As a result, the next bubble will grow. But this time Bitcoin might reach 200.000 Dollars. This sounds not realistic. But if you compare it to the dot-com bubble with 9,5 trillion dollar value, the 800 billion crypto market is still quite small. Thus, Bitcoin has the power to skyrocket in the future.
What are the trends for Bitcoin in 2021?
The analysis has already shown, the cryptocurrency market and investors have suffered a lot in the past year. But a lot of Bitcoin believers like John McAfee, Sonny Singh, Tom Lee, Fran Strajnar and many more still believe that Bitcoin will skyrocket in the next few years.
Also, Bitcoin is the first and well-known cryptocurrency. Therefore it has a huge amount of integrity and people still believe in it. As a result, Bitcoin has the chance to survive most of the crypto coins.
But many people have lost huge amounts of money. As a result, there is a lot of frustration. Because of that, the trading volume dropped significantly.
This sounds negative, but it is actually good for us. Because of the low trading volume, the price volatility will below. So it is easier to realize when the cryptocurrency market bottomed and therefore we can much easier apply our bitcoin investment strategy.
Our successful Bitcoin investment strategy for 20120
Over the past years, Bitcoin gained and lost a lot of value. At the moment there is a downward trend. A lot of investors have turned their backs because of frustration. But that is your chance to buy Bitcoin at a low price.
Following the analysis and the predictions, we expect an uptrend again in around 1-2 years. In 3-4 years it might reach his high point and crash again. So Bitcoin still has the potential to reach 400.000 dollars per coin.
So be patient and wait until the downward trend ended. You don’t need to find the perfect time to invest. That is nearly impossible to do. You just need to find the timing to invest safely in Bitcoin.
The future for Bitcoin seems to be positive. Therefore, we advise you to wait to invest until next year. Then buy small amounts and wait to see if the market stabilizes. If that’s the case, invest in larger quantities.
Tips for Bitcoin investors
Based on our bitcoin investing strategy, we want to give you some investing tips. They can help you to execute our strategy.
1. Don’t go all in
It is important to spread your investments as well as possible. As a result, the risk to lose everything is small. So you should not invest all your money in Bitcoin. There are other cryptos like Ethereum, Litecoin, Ripple and other cryptocurrencies that offer an opportunity to make smart investments. Thus, you are able to balance your investment risk.
2. Don’t be scared
Bitcoin is making huge jumps in both directions. It is obviously not a stable currency at the moment. So don´t be scared when Bitcoin drops. You are trying to hold Bitcoin over a longer period of time. Thus, fluctuations are pretty normal.
3. Avoid advises from traders
A lot of people want to get rich with Bitcoin. Most of them don´t know what bitcoin or blockchain is. These people try their luck and hope for a better life. These people are just looking for good news. As a result, they only give positive advice. Thus, more people invest in bitcoin and the price rises. This is what these people want to achieve. Therefore you should only listen to yourself or to people you really trust.
4. Chart Analysis
Of course it is nice to see your investment increase in value. But you should avoid looking at the chart every minute. Your goal is to keep bitcoin for a longer period of time. Daily changes have little influence on the long-term goal. So try to keep yourself busy with other things. You can learn more about the underlying technology Blockchain.
5. Don’t trust trading pattern analysis
As I said before, there are some wannabe traders who try to convince others to buy bitcoin. Thus, the price rises and these people benefit. So after every big price drop, they announced that you miss an opportunity to get rich. They show you their pattern analysis and hope to convince you. But the chart pattern analysis doesn’t work with cryptocurrencies. They are confronted with many rules and other things that cannot be implemented in diagrams. That’s why you should be careful when looking at chart analysis.
6. Only invest money you can lose
Bitcoin has not been available on the market for that long. Therefore, no one can really predict how much bitcoin will be worth in 5 years. So it’s a lot of luck whether you will be successful with your bitcoin investment. Therefore only invest the money that you are prepared to lose. This takes the pressure off your shoulders.
7. Understand Blockchain
That is our most important tip for successfully investing in bitcoin. As Warren Buffet said, “The risk is not knowing what you’re doing”. It is really important to know exactly how bitcoin works. To do this, you need to learn about the blockchain technology. This way you can decide for yourself which news is important and which are not. This way you can invest more confidently in bitcoin.