Is it worth investing in Bitcoin in the UK
Cryptocurrencies are recently celebrities among financial investments. It is a topic of endless, very intensive discussion, where everyone has their own opinion and it is hard to convince them to take a different look. How many times have you heard the stories of people who become millionaires every day? How many times have you heard about those who have invested in cryptocurrencies life savings to lose them within a dozen or so days?
If you are wondering whether it is worth investing in cryptocurrencies and whether it can be done in a safe way, this article is for you.
What does the cryptocurrency rate depend on?
For each type of investment the main economic factor driving the price is demand. This simple rule has been repeatedly confirmed before our eyes. For example, the crisis at the end of the first decade of the 21st century in the face of the crisis, the demand for investments in shares, for example, has significantly decreased. Another important factor in determining the price of an investment is supply. Would you like to learn more about earning money on crypto currencies? Check out the Earnings Ninja website.
What can lower the price of crypto currency?
• High quantity – if a coin has a large supply, its price is low. For example, Ripple has almost 40 billion coins in circulation and Bitcoin has released several million. That’s why Ripple can be bought under 1 dollar.
• Unknown currency – the newly created cryptocurrencies is much cheaper, because nobody has heard about it yet, or prefers to invest in known names. If you find a new crypt currency that shows potential, you can consider investing.
• From high to low price – cryptocurrency, which had a high value before, but with time it has fallen probably will not reach the same profitability again.
How to invest in order not to lose?
Investing in cryptocurrencies in the short term is very risky due to huge price fluctuations. If you want to try your hand at short term investments, you need to pay more attention to technical analysis than to the current price of the selected coin.
The opposite is true for temporary investments. If you play long term, you must pay special attention to the basic value of the cryptocurrency in which you invest. What is more, diversification of risk by choosing several types of crypto-nuts is a prerequisite for such investments.
Many people wonder if 2019 is suitable for buying Bitcoins or when they should invest in cryptocurrencies. Although there are some general price trends, nobody can say exactly when it is best to buy cryptocurrency. There are two main factors that you can observe when trying to decide if now is the right time to buy crypto: seasonality and market cycles. Cryptocurrencies usually cost the most in February, March and late December. Many people call it “alt season” because that’s when Altcoins generate very high profits.
Forecasts for 2020
As in previous years, 2020 will bring many ups and downs in the general market. This means that there is still a chance to get rich – you just have to make the right bets. Due to the recent quite serious fluctuations of Bitcoins, players are changing their betting stakes in favour of Altcoins. Bitcoin remains the undisputed king of cryptocurrencies, but many people have questioned its usefulness. First of all, new and exciting cryptocurrencies have appeared and Bitcoin himself has suffered from serious performance problems.