If you’ve been watching the world of finance and investing this past couple of years, you probably know about Bitcoin and its meteoric rise. A very cryptic asset that popped up in 2009, Bitcoin went from $1 in 2011 to an all-time-high of $66,000 roughly a decade later. For an investor, the question remains – should you buy BTC right now? Here are some reasons why it might be a good time to buy as well as some reasons not to.
Pros of Buying BTC Right Now
Perhaps the strongest argument that investors who are bullish on Bitcoin have is the cryptocurrency’s increasing adoption in the real world. Over the past decade, an increasing number of businesses have started accepting BTC to complete transactions. These include Baskin Robbins, Crate & Barrel, GameStop, Home Depot, Whole Foods, Starbucks, AT&T, and Microsoft to name a few.
Another reason to purchase BTC is its global value and use case. Since BTC and other cryptocurrencies, like ETH and LTC, have the same value in every country, people who travel can use their available cryptocurrency for consumer goods and services at the same value. There are no exchange rates that can lower the value of your cryptocurrency, unlike traditional currencies, such as USD and JPY.
Cons of Buying BTC Right Now
Perhaps the most notable drawback of buying BTC right now is its price. While the price of BTC at the time of writing is around $50,000, which is $16,000 lower than its all-time-high price, there is still a lot of room for the asset’s value to drop relative to the upside.
And while BTC is less volatile than other newer cryptocurrencies and tokens, like DOGE and SHIB, it’s still relatively more unpredictable than traditional investment vehicles, such as growth stocks, ETFs, and bonds. The value of Bitcoin is predominantly driven by market sentinment rather than actual value prospects or quantifiable data, which is why the crypto’s price can move significantly in either direction on a daily basis.
How to Buy BTC
The simplest way to buy Bitcoin is through exchanges, like Coinbase and Gemini. These exchanges have their own dedicated trading platforms where you can buy and sell cryptocurrencies, monitor prices, and manage your account.
Before you sign up for these trading platforms, it’s a financially responsible move to allocate only a portion of your savings that you can afford to lose. Better yet, make sure to establish an emergency fund and max out your retirement savings account contributions first. Any money left over can then be put into your BTC trading account.
Another way to purchase BTC is through SoFi Invest. Buying Bitcoin with SoFi Invest, a growing finance platform, can yield you up to $100 worth of free BTC for new users. You also get access to 25+ coins and trade 24/7, so you can diversify your cryptocurrency portfolio and distribute risk. However, experts recommend that before you purchase crypto through SoFi Invest, it is important to understand the volatility of its value, and therefore its inherent risk.
Trading in cryptocurrencies, like Bitcoin, always involves some degree of risk. It’s best to familiarize yourself with the market, its merits, and the economic factors that drive BTC’s price before you open a live trading account.