Watching ups and downs of Bitcoin can be like watching tidal waves. It was a pretty depressing site for Bitcoin investors as Bitcoin took a huge fall last week dropping as low as $11,000 after reaching the heights of $20,000. You can say it out loud, this is hella fluctuating as Bitcoin witnessed its worst week since 2013.
Rest assured as Bitcoin recouped half of its losses from last week, touching midway point in the price at $16,000. While Bitcoin experts believe this fall was inevitable due to the hype created around Bitcoin and the entrance of the common man in trading of Bitcoin.
The digital currency has risen by twenty times since the start of the year, climbing the ladder from an initial price of $1,000. It is hard to evaluate the correct valuation of Bitcoin but it seems it has found its sweet spot.
How to make a profit while trading Bitcoin?
Some might say extracting profits is the right way to go about it while some may believe buying into long-term projection is the correct method. Regardless of what others might say, the most optimum method totally depends on your needs. Let’s try to understand this with the help of an example, if you are looking for fast profits then removing profits from your investment can be suitable although there is a high chance your profit would be small. For someone who does not want fast returns and has no urgent use of the investment, they can dive into long-term investments to witness a bigger profit over a longer period of time. In much simpler words, if someone bought Bitcoin at the start of this year and held on till the end of the year made a much bigger profit than someone who bought Bitcoin in November and sold it in December.
While some country has accepted Bitcoin cryptocurrency with wide arms, some countries have banned any companies related to Bitcoin. No one can truly determine the fate of Bitcoin as it still remains a highly speculative investment. Only time will tell whether Bitcoin is a bubble or not.