“Never put your eggs in the same basket”. How to store bitcoin safely, reasons to buy it today?

The bitcoin rate continues to hit historic highs — at the moment, the price of the most popular cryptocurrency is 48 thousand dollars. In general, over the past two days, Bitcoin has risen in price by more than 22%. Experts talked about whether it is worth investing in it now.

Stanislav Storozhev senior analyst at the Bitexfin cryptocurrency exchange notes that, according to the principle of operation, bitcoin and other cryptocurrencies are similar to other digital money, but cryptocurrencies are not currently controlled by any company, state or regulatory body. Also, the total emission of bitcoin is limited to 21 million coins.

Stanislav Storozhev calls the main advantages of bitcoin transparency, anonymity, ease of use, and the absence of intermediaries. Low fees and processing times for large transactions are also noted.

At the moment, at a rate of 48 thousand dollars, bitcoin can be considered a long-term investment, says Stanislav Storozhev. Now the cryptocurrency market is prone to volatility and it is difficult to predict its short-term movements, however, if you can invest for a year or two, then Bitcoin can be a very promising asset.

“It all depends on your investment strategy. If you assume long-term storage of bitcoin, then it does not matter at what rate you take it. There is even a special strategy when you allocate a certain part of your funds, say, monthly, and no matter what the price of bitcoin is, you buy bitcoin with this amount. Such a strategy is designed for the long term and it gives good results when it comes to investing for a period of five years or more. In five years, regardless of what the price would be, how it will change during this time, you will be in the black, since the cost of bitcoin will only grow in the foreseeable future, ” says Maxim Yudichev, head of the Coin-Galaxy cryptocurrency exchange.

If we are talking about shorter-term strategies, when you plan to buy and sell at a higher price during the year, then you must follow a simple classic trading rule: buy when the price falls — sell when the price rises. If we see a fall in prices, we can safely buy; if we see an increase in prices, we can safely sell. And the size of this movement must be determined by the time during which you plan to complete the transaction: the shorter the time interval, the less significant fluctuations you can try to catch.

According to the head of the information site about cryptocurrencies cryptonisation, Alexander Zyl, investing in bitcoin is very risky. The very absence of a regulator ensures that the price of bitcoin is determined exclusively by market mechanisms. There have been many cases in history when bitcoin has depreciated by 80–90 percent or more. And there are no guarantees and grounds to believe that this situation will not happen again.

What is the reason for the growth of the most popular cryptocurrency?

“The arrival of new institutional investors stimulates demand and propels the industry. The cryptocurrency market is gradually maturing, and large hedge funds and companies see the prospect of digital assets. Many of them willingly buy both Bitcoin itself and Bitcoin futures. Ordinary people see that cryptocurrencies are trusted by serious financial organizations and are also beginning to take an interest in bitcoin — already from the position of greater trust in cryptocurrencies. The other day, Tesla Ilona Musk invested $ 1.5 billion in bitcoin — this helped the cryptocurrency to add 8% to the value as soon as possible, “says Stanislav Storozhev.

According to Maxim Yudichev, there are several factors slowing down the increase in supply:

1. The constant complication of mining: every year it becomes more and more difficult to mine bitcoin, fewer and fewer enter the market using mining;
2. Many people have simply lost access to wallets. Access to a bitcoin wallet is possible only if you know the key to it. Keys can be stored on paper (paper can be lost), they can be stored on a computer (a computer can break down) — such everyday cases lead to the fact that a certain amount of bitcoins are constantly withdrawn from circulation, since, without knowing the key, no one can get into these wallets and withdraw bitcoins from them;
3. Increasing popularity of bitcoin. Its popularity grows with each peak wave , as there is more and more evidence that people are making a profit many times greater than the size of their investment in a short amount of time.

“The best way to store bitcoins is“ put your eggs in different baskets ”. Conventionally — keep a part of it in a cold wallet — a special device similar to a USB flash drive, part on a cryptocurrency exchange, part on an online wallet. If you store bitcoins this way and don’t forget your passwords, then the chances of losing your cryptocurrency are minimal. Choose trusted exchanges and beware of dubious resources”, concludes Stanislav Storozhev.

Translated from Russian.

Original article: https://mir24.tv/news/16447071/kladite-yaica-v-raznye-korziny-kak-hranit-bitkoiny-i-stoit-li-ih-seichas-pokupat