Bitcoin jumped 3% when the first U.S. bitcoin futures ETF launched on the market. While 2021 has been a crazy year for cryptocurrency investors, it’s undeniable that more folks than ever are investing in Bitcoin.
Some market experts warn against a deep investment in crypto, but a smart investor must realize that bitcoin currency isn’t going anywhere. Are you thinking about expanding your portfolio to include bitcoin?
Read on to learn more about the benefits of Bitcoin.
Any Speculative Investment is Risky
Experts and analysts can make educated predictions about speculative futures investments and often be correct. The truth is there is always a level of risk involved with investing. You accept those risks to make profits.
A rule of thumb for any market investor is to have a diversified portfolio. You don’t want to sink all of your money into one sector or type of investment. While you could see potential high returns, you also risk losing all of your money.
Gold, silver, and other precious metals are a way for you to safeguard your stock portfolio. These metals rarely lose and often gain value during market downturns. Bitcoin is fast becoming a way to achieve portfolio diversification due to its easy processibility.
Fiat Currency’s Declining Value
The world economy is now seeing the dire, long-term consequences of the COVID-19 pandemic. The U.S. and other countries propped up their economies with pandemic relief programs and short-term economic stimulus. Unfortunately, that formula could only last so long.
The current “labor crisis” is now having dire consequences on the supply chain. The threat of inflation now looks like a reality. As prices rise through the winter due to scarcity, the value of the U.S. dollar and other fiat currencies will drop.
Bitcoin is one of the best investments against this declining value because it exists outside fiat currency. The value may increase when the dollar’s value drops.
Because cryptocurrency like Bitcoin is decentralized, all transactions are anonymous and tax-free. While this may seem like a shady way of doing business, moving large sums of money without worrying about flagging the IRS is an advantage to high-leverage investors.
A Bitcoin OTC broker will help you move your coin anonymously. They can handle large volume buys and sells, allowing your crypto portfolio to have maximum liquidity. Using an OTC broker will also help you avoid any price slippage during a transaction.
Should You Start Investing in Bitcoin?
There isn’t a consensus as to whether you should include cryptocurrency in your portfolio. Some market experts don’t like market volatility, while others love the anonymity and decentralization investments provide. Bitcoin is still very new, and nobody is 100% certain of the market’s future.
What’s certain is that Bitcoin and other forms of crypto aren’t going away any time soon. Investing in bitcoin now may help you get ahead of the market to see significant gains.
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