Cautious Investment Decisions: Is It Wise To Put Your Eggs In One Basket?

If you ask any crypto trader whether Bitcoin is the only cryptocurrency worth investing in, they will probably tell you otherwise. There are tons of crypto tokens with lots of potential and ROI with such coins can be massive to say the least. However, the value of such altcoins could also plunge almost overnight in a technological world that is evolving rapidly. 

If you’re not someone who knows the ins and outs of different altcoins, their pros and cons and the problems they are able to solve, then you might want to stick to the proven Bitcoin that seems to be one of the most stable coins in the crypto world – even with its recent plummet. 

So, unless you’re willing to obsess over graphs, trends and trades every second of every day, it’s simply too overwhelming to keep up with all the other coins that come and go. You might choose to simply invest in some BTC and hold it for the long run. But, is Bitcoin really a good investment?  

With all its ups and downs, Bitcoin’s fluctuating value doesn’t seem to be faltering when compared to other cryptos. While certain altcoins like Ethereum are anticipated to explode in value – they’re still no comparison to the mighty BTC. 

This is why the usage of Bitcoin shows no signs of slowing down or dwindling in popularity. It’s easy to see this because people are shifting from fiat to crypto payments very willingly and easily – be it for work related endeavors such as business transactions or pastimes like playing at Bitcoin no deposit casinos. Case in point, there is an increasing demand in online casinos specializing in crypto payment methods (many even do so exclusively) – some of these are here on this page.

The Pros and Cons of Bitcoin

Anyone that gives you investment and financial advice, even professionals, will wash themselves of liability should things go south. At the end of the day, you can listen to everyone’s opinion, but the call is yours to make. 

However, certain facts can definitely help you make an informed decision. As an investor, you must be mindful of the pros and cons of Bitcoin. Here, we list some of the principal advantages and disadvantages of Bitcoin as we know it thus far. 

Pros:

  • The very first crypto was Bitcoin.
  • Digital paucity makes bitcoin precious and rare.
  • Since its creation, Bitcoin has had the highest return on investment of any type of financial asset.
  • Over the previous ten years, Bitcoin has beaten commodities such as gold, equities, and oil.
  • Bitcoin transactions are cheap, peer-to-peer, borderless and fast 

Cons:

  • Bitcoin, despite being one of the most stable cryptos, is still volatile compared to fiat currencies 
  • The regulatory framework around cryptocurrencies can be convoluted and change drastically between jurisdictions 
  • Bitcoin can be environmental burdensome given that it consumes a lot of electricity (127 TWh/year). This is because the proof of work mechanism required to verify BTC transactions is highly energy intensive. 

How Should You Invest in Bitcoin? 

If you have the time, inclination and know-how, you might want to get into trading. However, trading can be a slippery slope. There are different types of trading but the idea is to buy when the price is low and sell when it is high and do this over and over again. 

For most folks looking at Bitcoin as an investment, simply buying some BTC and holding it could prove to be the better course of action. Long term holding is a lot safer than most other types of Bitcoin investment. But still, it is volatile and the price can go up or down pretty drastically. 

However, if you look at where it started and where it is today, there is no denying it has been one of the most profitable assets ever for those that bought early and held for the long run. That’s not to say that there are some other altcoins like ROSE that may be worth a look. 

How Much Should You Invest in Bitcoin? 

Bitcoin is volatile and the question of how much you should invest can vary from one person to another depending on how much money they have. Generally, it is not recommended to invest more than 50% of your capital into just Bitcoin. However, the decision is yours and taking a bit of risk can even pay off handsomely. The question is – how much risk are you comfortable taking? 

For most people, the recommended amount to invest in Bitcoin would be somewhere around 5% to 30% of their investment capital. Basically, you should be able to afford to lose it all and still be fine. 

If you’ve never invested in any cryptocurrency, a good way to go about it would be to invest a very small amount (maybe $100 or so for a middle-class person) into Bitcoin or another crypto currency and just watch how it plays out over the course of a few weeks or even months. You will get a better idea of how Bitcoin wallets and exchanges work, how the value of the coin is unfolding and what real world events that cause observable ripples in the crypto world and their eventual corrections. As a result you will get you much more comfortable with investing a larger sum of money.

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