If you are planning to invest your money in cryptocurrency, then likely you may be eyeing bitcoin. Though there are thousands of digital currencies, bitcoin is one of the most favorites of all. When compared to other cryptocurrencies, bitcoin is pretty stable. It has been there for over a decade and still continues to witness rising popularity, besides increasing value.
In 2021, Bitcoin reached its all-time high. The BTC to INR rate today is equivalent to ₹3,244,624. And this price after five years is predicted to reach around $127,909.0324. This means Bitcoin has the potential for huge returns.
But what is it good for – long-term investment or short-term investment?
Let’s find out what works the best.
Bitcoin for long term investment
In the past few years, the price of bitcoin has increased and it is expected to grow further in value. In 2021, bitcoin value surpassed over 65,000 USD and its overall performance for the year recorded a 66.5% return. Considering its history and particular features bitcoin remains ideal for long-term investment. Indeed, its underlying blockchain technology is another aspect that enhances its utility as a long-term option.
Here are the key factors that make bitcoin highly valuable in regards to long term investment:
l Bitcoin is not only popular among traders but among developers as well. This implies the coin will progress, embed new features, and will keep on complying with changing market conditions.
l Bitcoin is highly versatile. It finds application in several fields across different segments. Therefore, it is expected to witness increasing adoption and price rise. Furthermore, this digital coin has a lot of functionalities that are applicable in the future thereby making the coin a great option for the long term.
Bitcoin for short term investment
Any coin whose price is subject to a lot of fluctuations is deemed suitable for short-term investment. In that regard, even bitcoin’s value changes frequently. However, when you plan for a short-term investment, you expect a decline in the coin’s value.
Contrary to long-term investment, short-term investments are considered time-critical. Their time duration is shorter than 5 years. This means if you aim for the short term, then you don’t have time to mine coins. Rather you need to buy them.
You can buy bitcoin in India through exchanges and resell them for profit. But this won’t provide you profit as high as the profit you can gain with long-term investment. Short term offers you quick return but lesser in amount than the long term.
Lastly, it all depends on your personal preferences. Whether you choose to invest in bitcoin for the long term or short term, make the decision wisely. Cryptocurrency investments always carry some amount of risk. There is an equal possibility of earning as well as losing.
So, remember to invest what you can afford to lose. Besides, make sure to consider halving occasions, volatility, and secure storage of bitcoins.