Should You Invest In Bitcoin
Bitcoin is all over the news these days, and with good reason: Over the past few years, the cryptocurrency has seen a massive rise in its value, thanks to increasing demand, a shift to digital currency, and the backing of celebrity investors and major companies. As of this writing, Bitcoin’s value stands at $51,650 – just off of its all-time high. This increase in value has helped make the coin even more popular, with many asking when to buy cryptocurrency.
What is Bitcoin?
As noted by the experts at SoFi, Bitcoin is a type of cryptocurrency: “Crypto is decentralized, meaning that it is not controlled by a central authority like a bank or government and instead is exchanged person-to-person. Bitcoin was the first cryptocurrency.”
As the first, it is also the most valuable. The entire market capitalization of cryptocurrency is at roughly $1.58 trillion, and Bitcoin is more than half of that, with its market capitalization currently sitting at $961 billion. The past month has also seen a massive boost in Bitcoin’s price. Thanks to positive tweets by Elon Musk, the announcement that Tesla would accept Bitcoin as cash, and a concentrated effort by social media to buy the coin, Bitcoin’s value has increased this month at a rate almost faster than any other point in its history. It started the month at roughly $36,700 and has increased almost 40% during that time period.
Is it a Good Investment?
There are a few points about this. First, obviously, Bitcoin has seen a massive spike in value that has made investors a lot of money. However, it’s also worth noting that Bitcoin is an extremely volatile investment. For example, in December 2017, Bitcoin was as high as $19,650 before the bottom dropped out, with the price hitting as low as $4,100 less than a year later. The price of Bitcoin unquestionably fluctuates wildly. You need to have the stomach for this. You also need to have the money for it. Given the obvious challenges and volatility of Bitcoin, investing all of your retirement in the crypto is probably a terrible idea. However, if you have a slice of your portfolio dedicated to riskier investments, Bitcoin may work well.
How Can You Invest in Bitcoin?
One of the easiest ways of investing in Bitcoin is by using the SoFi app. It is safe, secure, and convenient: Using the app, you can make purchases 24/7. They’ll also give you $10 in Bitcoin when you first open your account. The app comes from the financial experts at SoFi, so not only do you get access to their world-class research and transaction platform, but you can use the app to purchase a variety of other instruments, including stocks, bonds, ETFs, other types of cryptocurrency, and more.
Bitcoin can be a great investment. Just make sure that an investment in it fits your overall financial goals and that you are able to stomach the risk that comes with it. If you need an app to purchase Bitcoin, make sure to check out SoFi.