Consider these three things before you invest in bitcoins!
News

Consider these three things before you invest in bitcoins!

February 14, 2022

For the cryptocurrency investors, 2021 came out to be a rollercoaster. Initially, towards the beginning of 2021, there were lower prices of bitcoins, but as soon as Elon musk described bitcoin as an incredible asset, it started to increase prices. Later on, Elon musk added bitcoin as a payment method for the new cars, and therefore, the prices of bitcoins increased further. After that, Elon Musk also said that he would make a $1 billion investment in bitcoin which led to the massive increase in the prices of bitcoins. There was an almost 400% increase in bitcoin prices just because of the statements given by Elon musk. However, if you are considering purchasing bitcoins, you cannot just go with the statement given by some prominent players in the market. You have to rely on some of the most important statistical data and some important considerations if you want to keep yourself safe from any fraud and long investment.

The few days of 2022 have not been the best for cryptocurrency investors because the bitcoin prices are falling. Bitcoin reached the highest price in November 2021, but now, the prices are decreasing. Even though there was a slight recovery in the bitcoin prices every day, they came back down and hovered around the $40,000 mark. You need to note that it is not only the price you have to check when you buy a cryptocurrency. There are undoubtedly other factors that you have to keep in mind if you want to make a suitable investment. However, according to experts, there are certain essential things that you need to keep in mind and check the financial behaviour of the crypto coins.

READ ALSO  Bitcoin boom in India and 5 best bitcoin trading apps for Indians

You are supposed to keep in mind certain essential things if you want to make a suitable investment. Investing in the right place will lead you towards making profits while investing in the wrong place will make losses. Hence, certain essential things you are supposed to keep in mind are given in this post and make sure to read them carefully to understand bitcoins more.

Being suspicious want to save you

If you are a cryptocurrency investor, you might be very well aware of the term called a bubble. It happens when a commodity’s price increases for more than its actual value. It is something that has happened with bitcoin also. Many experts believe that bitcoin has already become a bubble of the cryptocurrency space, and it will explode anytime soon. Still, cryptocurrency investors are not scared of the same. They are investing in this digital coin with a little bit of caution. They also state suspicious about the bubble situation which is going on in the prices of bitcoin.

However, many experts believe that it is widespread for people to purchase far more valuable things than the exact value. It is human nature, but you should know that everyone invests in bitcoin because they believe that they will exit the situation before the bubble crashes. However, it is not the same always. Click this image below to start your bitcoin journey.

Sometimes, FOMO backfires

You may have heard stories about people purchasing houses with the money they make with cryptocurrencies. Well, everything which is related to these things is in existence because of bitcoins. How can you not experience the fear of missing out because of the stories? Unfortunately, many people who invest in cryptocurrencies like bitcoin fall prey to herding bias. People do something that many people are already doing, and it is not the right move to make. People believe that they cannot miss the opportunity that people are taking up, and hence, they invest their money in crypto coins. Well, this always does not turn out to be the right move. The thing is, the crowd is already doing it because they have seen someone else doing it.

READ ALSO  Let's grab some knowledge about the basics of bitcoin!

It’s still evolving

To understand the value of an asset, you have to go through a lot of technical analysis. However, this will be even more difficult when dealing with something that does not even exist in the physical world. Bitcoin does not exist physically, and therefore, the tools you may use in the stock market will not work. For the traditional stocks, you can get the price earning ratio which can further tell you how much a company is willing to pay for a commodity. Hence, the price valuation is a little bit easier.

ABOUT

Mysuru’s favorite and largest circulated English evening daily has kept the citizens of Mysuru informed and entertained since 1978. Over the past 41 years, Star of Mysore has been the newspaper that Mysureans reach for every evening to know about the happenings in Mysuru city. The newspaper has feature rich articles and dedicated pages targeted at readers across the demographic spectrum of Mysuru city. With a readership of over 2,50,000 Star of Mysore has been the best connection between it’s readers and their leaders; between advertisers and customers; between Mysuru and Mysureans.

CONTACT

Academy News Papers Private Limited, Publishers, Star of Mysore & Mysuru Mithra, 15-C, Industrial ‘A’ Layout, Bannimantap, Mysuru-570015. Phone no. – 0821 249 6520

To advertise on Star of Mysore, email us at

Online Edition: [email protected]
Print Editon: [email protected]
For News/Press Release: [email protected]