Is bitcoin a good investment?
The quality of an investment depends on your horizon and expectations. That said, bitcoin has been called “the investment of the decade” as it has vastly outperformed popular investments such as the S&P 500 and gold since its conception.
Am I too late to invest in bitcoin?
With Bitcoin only in existence for 13 years and binance technology for fewer, crypto should have a long runway ahead. Other trends that could give it momentum include:
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Institutional adoption
While it would have been impossible to believe just five years ago, these days, a growing number of high net worth individuals and funds allocate a portion of their portfolio to bitcoin. If this trend continues, we can expect to see extremely large inflows of capital into Bitcoin, which will have positive effects on its adoption and price.
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Growing infrastructure
Many established companies like Block (formerly Square), PayPal, Robinhood, Venmo, and others have created an infrastructure that makes it easy to buy, sell and transact bitcoin with others. This seamless on-ramp to participating in the Bitcoin network is essential for widespread adoption.
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Legal tender and increased use
With technological upgrades over the past few years, many holders have started using bitcoin for its original use case, a medium of exchange. El Salvador, the first country to declare bitcoin as legal tender, has set a precedent many countries are likely to follow. If these trends continue, then the price of a bitcoin will most likely continue its upward trend.
When is the best time to buy bitcoin?
Most long-term investors adopt a strategy called dollar-cost averaging, which is buying a set amount at certain time intervals (e.g. daily, weekly, monthly) to continually increase their exposure and automate the decision-making behind timing the investment.
You can set up a recurring buy in your Binance Wallet today to start dollar-cost averaging into bitcoin.
What are the downsides to investing in bitcoin?
Volatility. Bitcoin does swing more widely than stocks. However, the trend-line in its price over time has been upward.
Risk. No investment comes without risk, but there are a few risks and responsibilities that are inherent to owning Bitcoin. The most important being that the owner of Bitcoin is responsible for keeping their private key and funds safe from criminals. For more information on keeping your crypto safe, view the Account Security section of our support center.
How do I start investing in bitcoin?
Great question! If you’re verified at Binance, you can get started right now in your Binance Wallet.
