You may have heard about how much Bitcoin is worth, or that it’s the world’s first cryptocurrency. But what does this popular crypto mean for you? Should you sell your bitcoins right at this point or hold on to them? If you’re not sure where to stand in certain Bitcoin situations, just read on to learn what you should do in case of a Bitcoin crash.
Bitcoin Has Always Been Reaching All-Time Highs
While the beginning of 2018 is off to the races with Bitcoin reaching all-time highs, it’s not the only cryptocurrency. Ethereum, Ripple, and other coins have also seen their value increase over the past several months. The good news is that this means there are more options available to investors who want to get involved in cryptocurrency trading but don’t have thousands of dollars lying around.
However, as many investors learned firsthand during its dramatic crash last year, Bitcoin remains volatile and risky as an investment option. If you’re considering purchasing some BTC or another coin this year or next, consider that the price will likely fluctuate throughout 2018; don’t expect stability from day one, and you’ll need patience when holding onto your coins; don’t panic sell when prices drop.
Bitcoin Has Experienced Crashes Before
Bitcoin has experienced some severe crashes in the past. The most recent Bitcoin crash was in 2018 when it lost more than half its value before eventually recovering. This means that if you hold onto your Bitcoin when it crashes, there’s a chance that you could lose money on it – but there’s also a chance that you’ll be able to buy back into the market at a lower price point and make more money.
There Are A Lot Of Factors That Affect The Current Value Of Bitcoin
Bitcoin is a highly popular cryptocurrency, which means it’s not backed by any government and is not a physical commodity. This crypto is also unregulated by any government or financial institution. The value of Bitcoin is determined by supply and demand, just like other commodities.
When the price of a certain commodity goes up significantly in value (like gold), people usually want more of it because they think they’ll be able to sell it later for even more money than they paid for it when they first bought it – and this is called speculation.
Bitcoin has become popular as an investment vehicle because some people believe that its price will continue to rise over time. However, many experts say that there isn’t enough information available about this digital currency yet for you to know whether or not these predictions are true.
