Bitcoin has experienced a roller coaster ride. How can ordinary consumers invest rationally?

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The price of Bitcoin is infinitely approaching 20,000 U.S. dollars. Looking back three years ago, after the highest point exceeded 19,000 U.S. dollars, Bitcoin will be like a waterfall that flows down rapidly. The currency once again set a record high.

Perhaps many bearish investors have regretted it now, and even slapped their thighs and shouted: Why didn’t they buy low-priced bitcoins?

However, even if the current Bitcoin price has broken through a new all-time high, after the price peaked last week, it began to take a sharp turn, falling more than three thousand US dollars in a short time! This roller-coaster-like market not only tested the leverage of position holders in the market, but also tested the heart of users. Many investors instantly changed their views on the Bitcoin bull market, and the market was bearish for a time.

Fortunately, after a short period of adjustment, the price has been soaring all the way, which dispelled everyone’s worries. Coincidentally, yesterday’s rush of 20,000 failed, and it ushered in a huge shock. Although the 8-hour closing decline stopped at -1.25%, the difference between low and high prices was nearly $2,000, and the hearts of users also fluctuated with the K-line.

Although this plunge did not turn the market from bull to bear, it has made many investors in the currency circle feel inexplicably fearful. Is Bitcoin worth investing in? If you invest, how can you rationally walk on the edge of risk and return? What is the source of this round of plunge?

This round of Bitcoin prices plummeted for two reasons.

First of all, after the price of Bitcoin is close to its historical high, many institutions are already full of vitality, so they will continue to sell. As a result, the selling pressure of the entire market is huge, and finally the price has a flash crash.

In addition, according to the price trend of Bitcoin, it can be seen that the short-selling increase for several months has caused the Bitcoin price to accumulate too much risk in the short term, and the risk and pressure have not been released for a long time. The market is worried and bearish. Strong, so it will indirectly lead to price flash collapse.

As an ordinary user, how to invest in Bitcoin? How can we avoid risks?

At present, the maturity of blockchain technology is getting higher and higher, and the entire market is generally optimistic about the development prospects of blockchain. As more blockchain-based applications land, it can be foreseen that the future blockchain technology Will occupy a great weight in daily life, there is no doubt.

Although the prospects are promising, in the short term, due to the mixture of many sloppy blockchain projects, they often wear the cloak of blockchain, so that users cannot distinguish between true and false. In case of investment mistakes, the losses caused will be irreparable. Therefore, don’t invest blindly, especially don’t let your funds in risky projects without professional technical support.

With the spread of the global new crown virus, the role of Bitcoin in asset allocation is becoming increasingly unignorable. Many investors have begun to diversify their investments.

Not only that, most institutions have begun to invest in Bitcoin, such as pension funds (IRA), etc., which can be favored by big funds, and the investment value of Bitcoin is self-evident.

Throughout the whole year of 2020, the number of Bitcoin holders has been rising. In many European and American markets, Bitcoin is increasingly regarded as a mainstream asset by institutions and ordinary consumers. In the face of the current inflation trend, buying Bitcoin to resist inflation is undoubtedly a good choice.

Libra is coming soon, which is another substantial benefit for Bitcoin.

In summary, the investment value of Bitcoin has been recognized by the vast majority of funds. For ordinary consumers, it should be a good idea to allocate investment assets reasonably and invest in Bitcoin appropriately within the risk range that they can bear. Investment method, what do you think about this?