Experts explained how potential investments in the first cryptocurrency are in the long term, and also gave recommendations on how to buy an asset and store it.
In the past five years alone, Bitcoin has grown by more than 7,500%. Invested in the first cryptocurrency in 2016, $ 100 could bring almost $ 75 thousand in profit. In April of this year, when the price of bitcoin peaked at $ 64 thousand, the profit could have amounted to more than $ 105 thousand. Topplabs.org experts explained why, with the right approach, investments in bitcoin can replace pension savings.
The choice is justified
At the moment, bitcoin is one of the most promising assets for long-term investments, says Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. According to him, investors are attracted by the limited emission of cryptocurrencies against the backdrop of the negative impact of quantitative easing on fiat.
“The attractiveness of bitcoin is enhanced by the digitalization of the payments market and support from such large companies as Tesla,” the expert noted.
Bitcoin is still a very young asset with a promising future, says Mikhail Karkhalev, financial analyst at Currency.com crypto exchange. He believes that the deflationary model, as well as the ever-increasing demand for bitcoin, will lead to an increase in its value in the future.
How to invest in bitcoin
The most profitable is the purchase of the first cryptocurrency during the "crypto winter", Soshnikov explained. According to him, "crypto winter" comes after bitcoin realizes its growth potential amid halving. During such periods, the value of the asset decreases to its minimum levels. The last "crypto winter" was observed in 2018. Then Bitcoin dropped to $ 3 thousand after rising to $ 20 thousand at the end of 2017.
If there is no large capital for investment, then you can buy the first cryptocurrency on a monthly basis for small amounts, Karkhalev recommends.
“Every month you can save $ 10- $ 100 in bitcoin. In 10-15 years the capital will turn out to be solid, ”explained the financial analyst of the Currency.com crypto exchange.
If you have significant capital, you can buy bitcoin during corrections, since it is better to enter an asset as quickly as possible, added Karkhalev.
Long-term storage of cryptocurrency
If the goal is investing with a perspective for several years, and not stock speculation, then the ideal option would be to withdraw Bitcoin to a "cold" wallet, says Karkhalev. The director of the cryptocurrency exchange service Alfacash agreed with him, adding that "cold" wallets exclude the possibility of stealing coins through the network.
Experts named several security rules for storing bitcoin:
- A "cold" wallet must be connected to the Internet as little as possible and only to update the blockchain;
- Split the seed phrase, which is used to restore access to the wallet, into several parts;
- Store the seed phrase in several different places and have a printed copy of it;
- Do not dwell on the availability of cryptocurrency, its quantity and storage methods.