As the digital economy has become part and parcel of our financial lives, Bitcoin has also maintained it’s status as the face of the digital economy. (BTC) has seen meteoric growth in recent years. In May 2016, you could buy BTC for about $500. As of February 2023, a single Bitcoin is worth more than $23,000. That’s growth of approximately 4,500%.
Over this period, we’ve seen extreme volatility, with BTC reaching an all-time high of $69,000 in 2021. There is enormous potential in recognizing trading opportunities, while at the same time we should not ignore the risks associated with speculation in the financial markets and with BTC specifically. As traders, and investors, we are always looking to minimize our risk wherever we can. This starts with choosing the right working partner.
Bitcoin is the largest cryptocurrency by market cap and as a result its performance has become the standard gauge in measuring the cryptocurrency market. The vision of Bitcoin should be entirely fulfilled by enabling everyone to instantly acquire BTC and exchange it on a safe, regulated platform. Using the INX platform and app, you can quickly list and trade Bitcoin at any time and location while guaranteeing that all transactions comply with applicable regulations and industry-standard security measures that protect your privacy and security. INX (one.inx.co) features a simple three-step procedure for account creation:
1) Create and verify an account.
2) Fund your account/wallet with no minimum fee to invest.
3) Place your Bitcoin order.
The INX app makes buying and selling straightforward for seasoned investors and crypto newcomers. Using the INX app, you can instantly purchase Bitcoin while keeping track of its price and reading news about it, allowing you to plan your financial future with this digital currency. Following your purchase, there is the matter of how to keep your asset.
Crypto is reflected on the blockchain but held in a digital wallet. Therefore, while your assets are retained on the blockchain, only you have access to them. Your private key gives you control of the digital currency and allows you to make transactions. There are three main types of wallets you can store your cryptocurrencies in: hot, cold and biometric encryption.
1) Hot wallets are connected to the internet and can be accessed at any time. These wallets are convenient but more vulnerable to hacking than other types.
2) Cold wallets are not connected to the internet and must be accessed using a device that is connected to the internet. This makes them more secure than hot wallets, but they are still vulnerable to hacking if your device is compromised.
3) Biometric encryption wallets use biometric authentication technology like fingerprint scans or facial recognition software to ensure only authorized users can access their funds.
The ease of use and setup of hosted wallets have made them quite popular. Because they are “hosted” directly on the exchange where you purchased your bitcoin, these wallets are referred to as “exchange wallets.” There are only a few crypto wallets today that are regulated and can commit to this, for which INX checks all the boxes.
There are several factors that indicate potential buying opportunities. Fundamentally, the fact that Bitcoin has shown tremendous resilience in the face of a severe crypto winter, which has contributed to the positive sentiment for this asset. From a technical standpoint we have seen a solid support base established, followed by strong demand has resulted in the bullish bias we have seen since the start of the year.
It is essential to have a predetermined strategy with definite and realistic goals. Your strategy should dictate whether your plan is long-term or short-term, and how long do you intend to hold your position? Neither of these options are right or wrong and there could well be opportunities on different time frames – hourly, daily, or weekly. The only “wrong” is when the strategy is continually changed mid-stream and there is no distinction between investing and trading.
Once you have chosen the right working partner, and you have developed a trading strategy that suits your particular needs, the next question you may have is “how much to invest?” This is subjective and every person must trade at their particular comfort level. Remember you are in control of your account and can be as conservative (or risky) as you choose.
Diversifying your portfolio is an important part of investing. It is never a good idea to put all your eggs in one basket. You can diversify by buying different cryptocurrencies or tokens, or you can buy other types of assets, like shares, commodities or currencies. Whichever assets you are trading, it’s important to stay informed of market trends and relevant news to ensure you are making informed and educated trading decisions.
Rules and laws relating to regulations are constantly changing and it is important to keep abreast of any changes that might affect your trading business. It is certainly reassuring to know that INX.One is regulated and operates within all applicable state and federal regulations. As a trader this means you are working in the safest environment possible.
Buying Bitcoin can be a potentially rewarding investment opportunity. Online platforms allow you to trade conveniently and simply. As traders we always aim to eliminate risk as best that we can, and to this end you can take comfort in buying your BTC from a regulated exchange.
What is the highest price that Bitcoin has reached and will it get there again?
Bitcoin reached as high as $69 000 in November 2021. As traders we should not anticipate where the market may go, but act on where it is now and adapt our strategies to real-time live market conditions.
How much do I need to invest?
There is no minimum deposit amount. Trade with an amount that suits your comfort level and be realistic in your goals and expectations.
How do I know when to buy?
Develop a trading strategy and stay informed with news, data and information. Look for trading opportunities that fit your strategy, and don’t trade for the sake of it.
How long can I keep my Bitcoin?
You can choose to invest for the long-term (weeks, months, years) or you can choose to be a short-term trader(hours, days). Also, you can do both and apportion your funds accordingly.
Can I buy Bitcoin if I don’t have $23 000?
Yes. If Bitcoin’s current price was around $23,000, you’d need to invest that much to buy 1 BTC. If you invested less, say $1,000, you would get a percentage of a Bitcoin equal to about 0.043 BTC.
The INX Digital Company inc. is an expert in the field of finance, crypto and digital securities.