Bitcoin was unveiled in 2009, and its starting price was $0 till July 2020, when it increased to $0.9. It was during this period that Laszlo Hanyecz paid 10,000 bitcoins to Jeremy Sturdiant for two boxes of Papa John’s pizzas.
As the years went by, this digital currency gained stardom as its value continued to rise. However, this upshoot wasn’t constant as it has unexpectedly fallen many times beyond expectation. So, purchasing cryptocurrency today requires some serious research.
This broods the question for the crypto trader: how much Bitcoin is worth purchasing based on the history of this coin? This blog entry provides an answer to that question and lists five things to think about before buying Bitcoin this 2023.
5 Things to Take into Account When Deciding How Much Bitcoin to Purchase
Here are expert-researched factors to consider before buying Bitcoin in 2023:
There’s a lot of risk in the cryptocurrency market, and this volatility has defined this market from the onset. So, if you want to purchase Bitcoin, pick an amount you’re comfortable forgoing entirely.
How would you feel if you lost every penny you put into it? is a vital question you ought to ask yourself. Would you still be up for another try at changing your fate, or would you start entertaining thoughts of defeat?
If your answer to the above questions is “no,” then you might not be fit for the cryptocurrency trading environment. Only people who answered “yes” possess the right mindset to purchase Bitcoin. That’s because they can accept the potential losses that come with the cryptocurrency environment and are fit to buy digital coins.
Many Bitcoin investors have been known to “panic sell” and save some of their investments when they observe its price plummeting. These individuals regret their emotional decisions most of the time, showing that the cryptocurrency market requires high-risk tolerance.
The Right Timing
There’s a tendency to follow trends in today’s society. Now, cryptocurrency is the talk of the day, with success stories everywhere. A few years back, things were much different.
When Bitcoin was unveiled in 2009, many saw it as a fad. It wasn’t trendy, so no one cared about the people who bought it. By 2011, however, that wasn’t the case, as its value rose to $1 in February and $33 in June.
During this period, many investors bought Bitcoin, seeing it as a profitable asset. Of course, this was when this digital coin displayed its volatility, as its price violently dropped a short while later. This was the first bubble of Bitcoin, a dramatic rise and fall in its price.
These bubbles have appeared many times like this, with the value of Bitcoin going very high before it bursts once more. Hence, timing is crucial for a Bitcoin investor. You need to make your investment before this bubble bursts.
When Is the Right Time?
The best way to get the right timing is to study and understand the Bitcoin price chart. Visit a website like Coinmarketcap and go through the price history of this digital coin.
Go through the price records of this coin and check when last a bull run occurred. Also, check if Bitcoin’s current price is close to an all-time high.
If there has been no bull run in a while, then it’s okay to invest. If the value of this digital coin is close to its all-time high, then it’s time to stay away.
Investing in a bull run will offer little return as the coin’s price will be at its peak already. Investing when it’s close to an all-time high puts you at risk of experiencing a bubble burst when its value will fall violently.
So, you should only purchase this coin after a bull run. Once the price hits a record high, it’s the right moment to begin withdrawing.
The cryptocurrency market has been likened many times to betting in Vegas. You can enter a casino like a pauper and return a mega-millionaire or enter a millionaire and return a pauper. This market has drastically changed the financial status of many people, making it very popular.
So, how would you respond to a 25x increase in your Bitcoin investments? Would you spur yourself on to invest more in the cryptocurrency market so you can make more money? Can you keep your cool and continue with your regular investment plans?
Many become too emotional after a big profit on the Bitcoin market, forgetting its volatile factor. This was the case for Bitcoin investors in August 2017. Their investments rose to six times its original value by December of that year, as the Bitcoin price became $19,000.
This sudden profit spurred many investors to pour more funds and even their life savings into the cryptocurrency market. By the time December 2018 came around, the Bitcoin price had reverted to the original $3,200 of August 2017. As such, those investors lost all their investments and life savings, and some fell heavily into debt.
This situation might occur once more in the future as countries start to accept cryptocurrency slowly. So, if you can’t resist the allure of inappropriately investing your profits, then this cryptocurrency market isn’t suitable for you.
Are You Able to Commit Long Term?
Unlike what you might see online, most crypto investments do not yield visible returns in a short while. So, investing in Bitcoin now doesn’t guarantee a few thousand dollars in profit within three months.
The Bitcoin market has always rewarded the patient. So, if you want to buy this digital coin, you should be prepared for the long game. Sure, there may be a few dips here and there, but this doesn’t mean much for truly patient investors.
Is Bitcoin Your Only Investment?
Naturally, many investors are drawn into the cryptocurrency market with the promise of riches. They expect to make it big with a few timely investments and funnel all their funds into purchasing Bitcoin.
One mistake you should never make is having Bitcoin as your only investment. The Bitcoin market is never stable; a rise or drop in this coin’s value is inevitable. This implies that if luck doesn’t seem to be on your side, you should be ready to lose your assets.
As such, it’ll be better to have a backup that you can fall back on when your Bitcoin investment collapses. This backup can be other investments like real estate, stocks, forex, gold, etc.
As a result, you should only think about purchasing Bitcoin if it joins your investing profile. It ought not to constitute your entire investment portfolio.
How Can I Pick the Most Effective Bitcoin Crypto Exchanges?
In the section above, we covered the factors worth knowing before you decide to purchase certain amounts of cryptocurrency. Now is the right time to do so, but you must first go to a cryptocurrency exchange. For the best experience, while making this purchase, it’s always advised to visit the best exchanges.
Hence, we’ll be showing you how to choose the best crypto exchanges to visit.
Choose a Crypto Exchange That Supports Your Preferred Payment Methods
Do you want to pay for your Bitcoin with an online crypto wallet or debit/credit card? Then, you should find an exchange that supports these methods. Visiting an exchange that doesn’t support your preferred payment methods means you won’t be able to purchase anything.
Select a Trading Platform That Accepts Your Local Currency
If you’re a resident of the US, ensure your chosen exchange supports dollar purchases. Make sure the exchange supports the Rand if you’re an inhabitant of South Africa. Always remember to choose an exchange that supports your local currency.
Currency conversion costs can chip away at your funds, so using your local currency can prevent that. It’ll also increase the speed at which you purchase your digital coins since no conversion will occur.
Since you want to purchase Bitcoin, your chosen exchange should support it. Go through the list of supported cryptocurrencies on the platform to ensure that Bitcoin is among them. If you’re still unconvinced, contact the customer support staff on the platform to be sure that Bitcoin is available.
Most countries in the world today regulate all cryptocurrency exchanges that operate within their borders. Recently, Binance had some questions to answer as regards regulatory and transparency when the U.S. Senators called. They do this to monitor any form of money laundering that might occur through exchanges. The government also ensures that these exchanges meet certain requirements to guarantee the safety of their users.
As such, whatever exchange you want to visit should follow the cryptocurrency regulations for your country.
24/7 Customer Support
Your chosen crypto exchange must have reliable customer support, as things can sometimes go wrong. When things go wrong, responsive customer support can resolve things quickly.
It’s also important for numerous customer support channels to be available. This way, you have multiple channels to reach the exchange’s customer support representatives.
Low Trading Fees
Purchasing cryptocurrency from an exchange could come with trading fees, especially when you use bank transfers. These fees usually come from your bank, but sometimes, the exchange can take care of some of them. This will reduce the trading fees you’ll eventually have to pay for your transaction.
Hence, you should always review the fees an exchange demands for its transactions. This way, you can find the ones with the lowest prices.
User Interface (UI)
A good user interface would make purchasing Bitcoin easier for beginners and advanced traders. With a good UI, you won’t need to read instructions on how to use a platform, as everything will be intuitive. You’ll be able to find the tabs or pages for depositing funds and purchasing cryptocurrency with ease.
Know Your Customer (KYC) Requirements
Anonymity today isn’t as cryptocurrencies advertised when they came onto the scene. Today, KYC procedures are compulsory for using many online platforms. So, many crypto exchanges will require traders to confirm their identity during registration or before withdrawals.
However, there are still a select few that provide true anonymity, allowing you to purchase cryptocurrency without revealing your information. These exchanges do not require that you go through any KYC procedures to use their complete services.
These are some of the places you should visit if you wish to remain incognito online. Of course, if you don’t mind revealing your information, you can just visit any crypto exchange of your choice.
Security is another factor to take note of when you’re purchasing Bitcoin. No one wants to visit a platform that can’t protect their funds or personal information. So, your chosen exchange should be able to offer adequate protection.
Cold storage, proof of reserve, two-factor authentication, and secure socket layer (SSL) encryption are some of these safety features.
What can you use Bitcoin for in 2023?
There’s a lot that you can buy with Bitcoin in 2023 besides trading it, and they include:
- Buy cars: Bitcoin is accepted as a payment method by many car dealerships. The most predominant of which are luxury car dealers.
- Pay for online purchases: This includes shoes, clothes, kitchenware, furniture, food items, and other household purchases.
- Buy jewelry and watches: Luxury jewelry and watchmakers like Patek Philipe and Rolex accept Bitcoin as a payment method from their customers.
- Pay for insurance: Many insurance providers, like AXA, accept Bitcoin as payment for many insurance policies. Although life insurance cannot be purchased with Bitcoin, it’s suitable for other forms of insurance.
- Purchase gaming consoles online: Sites like Crypto Emporium allow the purchase of the latest XBOX and Play Station with Bitcoin.
- Purchase laptops and smartphones online: Online platforms like Crypto Emporium allow customers to pay for the latest iPhones and other gadgets with cryptocurrency.
- Pay for real estate: Many real estate companies today permit their customers to purchase digital coins like Bitcoin.
- Trade forex: Today, you’ll find many forex trading platforms that accept cryptocurrency as a payment method along with fiat currency. Some trading sites are primarily cryptocurrency trading platforms.
- Play at an online crypto casino: Various crypto-friendly casinos allow players to gamble via Bitcoin on casino games and play sports bets. A reputable crypto casino will allow for payment and withdrawal via Bitcoin.
Many people have rushed into purchasing Bitcoin and ultimately wasted their funds. Some even fell into the hands of fraudulent gambling platforms by not using a trusted Bitcoin casino. This article offers five factors that would act as a guide to buying the most popular cryptocurrency. When you consider these factors, your purchase of Bitcoin will occur with the right conditions to improve your chances of getting a profit.