Like everything else that has been going on over the last 9 or so months, the world of cryptocurrency is somewhat uncertain at the moment. The destructive events that 2024 brought upon the world are still hard to grasp, and all industries have suffered dearly, with some still suffering.
Coronavirus has lead the way for the disastrous year that 2024 has proven to be, and with so much loss and uncertainty, one cannot clearly grasp reality and predict what the next logical move could or should be. The same goes for large companies and the individuals dealing with digital currency, the supposed next step in business and finance. Does it make sense to invest and buy cryptocurrency in 2024?
The question is quite a complex one to impose, and trying to find the correct answer is even harder. Therefore, for the topic of this article, we decided to explore the topic of buying digital currencies in the year 2024 and just how risky it is.
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Table of Contents
General Overview
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It is worth mentioning right away that cryptocurrencies have always been very high-risk things to invest in. This is mostly due to their high volatility on the market, that is their nature of suddenly rising and plummeting in value almost on a daily basis. This is both good and bad, but of course, depending on your luck and skill, both of which you have to have a lot, you can either become wealthy or poor almost overnight.
That being said, cryptocurrencies are also very difficult to judge and estimate because there are no clear indications of how the market will change other than their history. Considering that history is also unclear and often challenging to track, one is left with more questions than answers.
For example, from its initial release some 10 years ago to 2016, Bitcoin, the most popular and valuable digital currency, was not even worth $2,000 per coin. Then between 2016 and 2017, the sudden rise began to take place, and soon in December Bitcoin reached its peak of nearly $20,000 per coin. Before the end of 2019 however, it plummeted to less than $5,000 only to cement its worth between $10,000 and $11,000 for the better part of 2024. From this paragraph alone it is easy to see how sudden and inexplicable these variations in worth can be.
A Good Investment
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All of that being said, cryptocurrencies have always been a good opportunity to invest in as they always find a way to get back to their highest values, and then some. The only inconvenience is that you cannot really know when that will be. Because of this, your safest bet is to buy when it is low and sell when it is high, making a clean profit in the process. Sometimes you will buy more since the currency will drop to below-average prices, while at other times it may drop even lower and stay low just when you bought it.
However, when done as carefully as possible and over an extended period in time, you will begin to see the patterns and become more proficient on when the best time to buy, sell, and trade is. It takes time and practice to become better, and the only obstacle is the need for patience and determination. Another key thing is not to get your hopes up too much and remain realistic. Your chance will come as long as you keep doing what you do and making the right moves.
Amount of Risk
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If you wish to have as little risk as possible while investing in digital currencies, you should consider investing in stablecoins, a sort of cryptocurrency model in which the currencies have assets behind them and are more like traditional currencies. However, these are often less valuable than true cryptos.
Low risk gives very low and limited income, so your best chance at getting something out of your investment is cryptocurrency trading platforms, especially Coinbase, Binance, and Gemini. These digital exchange services allow you to buy, sell, and trade all sorts of cryptocurrencies, as well as learn about them and follow the news and developments. In combination with cryptocurrency and Bitcoin ATMs (BTMs) that are more and more common in major cities, you will have all the tools you need to turn your investment into clean profit.
Near Future
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According to most experts, right now is as good a time as any to make your first investment towards cryptocurrency, mostly Bitcoin. This is because a sudden rise is bound to happen after so many plunges, and the people closest to the matter say a scenario similar to the one from the end of 2017 is highly possible. Back then, BTC skyrocketed and nearly went over $20,000.
However, it was not already at $10,000 – $11,000 when it jumped. In January of 2017, 1 BTC was worth around $900. On October 21, it was $6,180. Then on December 15, the price jumped to $17,900 only to reach the record of $19,783.06 on December 17. By December 22, it was back to $13,800 and a year later in December of 2018, it was $3,300.
If a similar rise is to be expected, it could push 1 BTC to a six-digit value, making numerous people millionaires overnight. At the time of writing, 1 BTC is worth $10,944, the highest it has been in more than a year. The aforementioned experts and professionals have estimated that a new meteoric jump could happen by the end of this year, or at the start of 2011.
This should be enough of a guarantee for you to invest in Bitcoin right now as a bright future seems to be ahead. After all, we deserve some positives after the dreadful year of 2024. Even if the jump does not happen that soon, it is definitely close by and all you have to do is wait after you make that initial investment. It is an exciting industry so why not give it a shot!
