To understand whether bitcoin is a profitable investment.
Profitability of Bitcoin
- Since it's creation, Bitcoin has been profitable 92.8% days it has been on the market. Despite its viotility last year, it has still remained profitable.
- The cryptocurrency has had times of rapid increase, followed by slow, steady downfall until stabiization throughout its history.
Factors Making Bitcoin Profitable
- Since Bitcoin is global, it is not affected by a single country's stability or financial situation. It is also apolitical and, therefore not impacted by any governmental control or influence. In fact, global chaos is often seen as beneficial to Bitcoin investors.
- Bitcoin is scare with only 21 million. The more it is mined the scarcer it will become, making it even more valuable.
- Bitcoin is transparent so it is easy to see when new Bitcoin has entered the market and how much is in circulation at all times.
Tips for Investing in Bitcoin
- Use a crypto exchange for trading. With the violitility of the crypto market, a crypto exchange can offer experience and specialized knowledge.
- Use the conservative strategy of buying and holding Bitcoin. Many times it will become more profitable the longer it is held.
- Trust and follow trading signals. Rely on the analysis of professionals.
- Security of the investment is top priority. Bitcoins should be stored in a secure Bitcoin wallet.
Proposed next steps:
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Our initial research indicates that investing in Bitcoin can be profitable. We recommend further research to identify predictions for the future of Bitcoin in terms of investing and predicted future prices.
In addition, we propose further research to identify 2-3 best practices for investing in Bitcoin. For each, we will explain what the practice is and how it will benefit the investment.