Are you confused regarding your bitcoin investments? If yes, then you have arrived at your destined page. Bitcoin investment is such an exciting topic in today’s world that youngsters, youth, and even grown-ups go gaga over every inch bit of crypto world investments. But does anyone consider the factor of volatility? Even if they do, why do they still take an interest in bitcoin investments?
If you are one of those confused folks looking for legit answers to such questions, then the following article might be your best friend and companion for now. Go through the following article to find out the answers to your questions now!
Is Bitcoin Trade Market volatile?
If you are a novice in bitcoin trading, first thing to take care of is the volatility. The Bitcoin trade market is quite volatile, which means you are prone to facing huge profits and terrible losses at the same time. However, you can easily avoid the losses in bitcoin trading when you know the right way to roll your dice!
The volatility factor in the Bitcoin trade market is the only factor that keeps folks away from the trade market. However, there are huge percentages of people ready to risk their sums in bitcoin trading. But have you ever thought to yourself, why?
You will get the answers pretty soon in the following article, but before everything, let’s check out the reasons behind such high volatility of the Bitcoin trade market:
Supply vs. Demand:
As you know, today’s world has got high demand for bitcoins, mainly due to digitalization. People want to explore ways of getting out of the physical assets and step into the world of digital ones as they are well aware of the bright future that the bitcoin market holds. People expect bitcoins to become the global currency someday, where people worldwide would not know languages or area boundaries before making a transaction!
The low availability of bitcoins increases the market value. But once the availability of BTC gets sufficient in the trade market, the market value of bitcoins automatically falls. This is one of the main factors which leads to the high volatility factor of the Bitcoin trade market.
Another factor affecting the volatility of the Bitcoin trade market is none other than media-centric content. People who love to invest in bitcoins and other crypto enthusiasts and famous traders of the bitcoin trade market always stay updated regarding all the news on various social media platforms and television shows. Once they get to hear some negative news, most investors will start selling away their virtual assets in no time.
However, if the media speaks of something good about bitcoins, the market value also rises high! Thus, the cryptocurrency trade market conditions depend a lot on the sensitive, sentimental statements from the media!
You might be feeling scared of putting your money in bitcoin as you consider all the above factors. But why not consider the positive aspects as well? Let’s check out the profitability of bitcoin investments now!
Is Bitcoin investments profitable?
Are you one of those who choose to invest in bitcoins despite their volatility factor? If yes, then you must be aware of the profitability factor. The high demand in the trade market makes the bitcoin market value high. Bitcoin value touched $65000 quite recently in 2021. If you have enough patience, you can invest the sum you are ready to lose and keep it in your wallet or keep it open to trade for quite a long time now. Once you find the best deal when the market value of BTC is high, you can sell it all to gain massive profits!
When you rush to the banks for any emergency withdrawal of deposits or even transfers, you need to wait until the bank authorities look into your matter and give you allowance for accessing the transaction facilities. But when you invest in bitcoins, you would not have to do anything as such because of the decentralized regulations. Apart from these, you cannot ever get such top-notch security from any other blockchain ledger than Bitcoins. If you are looking for a suitable bitcoin trading platform, Bitcoin Era might be the right fit for you!