When investing in cryptocurrencies, it is best to receive valuable information from expert investors. Their knowledge allows making the best decisions regarding existing risks and opportunities.
Bitcoin is indeed an asset with a lot of volatility, which could be attractive to those interested in investing in the cryptocurrency. In recent days, the price of the pioneering cryptocurrency fell from its all-time high of USD 42,000 to around USD 32,000.
In this situation, many people do not know whether they should invest in Bitcoin right now. The following information could be very helpful in resolving that concern, as well as factors such as risks and opportunities.
The Best Time to Invest in Bitcoin
Financial advisor and stock market analyst Andrés Moreno believes that the best time to invest in Bitcoin will depend on the investor’s risk profile. He divides these profiles into three categories: conservative, moderate, and bold. “If you have the bold profile and enough capital, and also believe in volatility, it is time to invest. If you think that the price of the asset will reach USD 100,000, it is also time to invest,” says the expert.
Regarding conservative people, he believes that investing in Bitcoin is not for everyone. “If you do not have much capital to invest and are risk-averse, this is not the time to invest now or ever. The reason for this is that this cryptocurrency is a high-volatility, high-risk product,” he adds. He explains that “the best investments are not the ones that yield the most, but they that give the most security.”
“The best time to invest will depend mainly on the timing of the investment,” according to Erick Rincón, director of Colombia FinTech. “The prospects are positive in the long term, given that economic uncertainty and the massive adoption of Bitcoin will continue. Besides, the authorities are looking for a regulation to legitimize it and integrate it into solutions for the traditional financial system,” Rincón stated.
Professional investor and enthusiast for new technologies Aldo Riot thinks that “it is always a good time to invest”. He thinks that cryptocurrencies are “emerging assets” with an uncertain future. However, he says that “Bitcoin has gained significant global traction in 10 years.”
This expert said that the most difficult thing for Bitcoin was to go from having 0 users to reaching about 30 million. “If Bitcoin fulfills its promise of value it could reach billions, potentially multiplying its current value.”
Risks and Opportunities when Investing in Bitcoin
Director of Colombia FinTech, Erick Rincón, highlights three risks: the market, the counterpart, and the security and backup of the keys. He says that the market depends on rapid price fluctuations, which is likely to correct downward. The counterpart implies researching the platforms well before trading cryptocurrencies to avoid scams or fraud. The security of the keys and their backup are relevant since it is necessary to have strong keys and other security elements.
Stock analyst Andrés Moreno says that, among the opportunities, volatility can be interesting. He considers that “you should manage risk well to be a good trader. This is advisable when you want an alternative investment where you do not need to risk more than 10% of your capital.”
Regarding risks, professional investor Riot cautions that Bitcoin’s main risk is losing consensus and traction. That would mean the loss of 100% of its value, but there is an opportunity for the consensus to grow.
“Bitcoin is a high-risk investment, as well as a complex asset to understand and manage. If you believe in a future of alternatives to traditional monetary systems, then this is an opportunity to buy Bitcoin. This asset can become a successful and valuable asset in the future,” highlighted the expert.
By Alexander Salazar
