If you are reading this article, it indicates that you also felt the hype around Bitcoin and other cryptocurrencies and wish to know if you could make some money.
Through years of news about the ups and downs of cryptocurrency prices, you might have wondered what if you had invested in Bitcoin at the right time. What if!
You might also wonder, is there still any profits to be made? Should I buy Bitcoin in 2021??
But before we jump to any conclusions, let us first try to understand what are the risks and challenges involved in buying Bitcoin in 2021.
Legalities in buying Bitcoin
From many MNCs to some private hospitals- there are now a lot of places where you can pay via cryptocurrencies like Bitcoin.
Many governments have also clarified about cryptocurrencies’ regulations and guidelines, and we see an overall positive future for cryptocurrencies being the new norm.
All of this has resulted in the rise of many cryptocurrency exchanges like Binance, Coinbase, WazirX, and Giottus.
You should always thoroughly understand your local rules and regulations for buying cryptocurrencies before you are involved in any such activities.
Rise of Customer-friendly Cryptocurrency Exchanges
We have explored them in brief in our answer to How do I buy Bitcoin.
These cryptocurrency exchanges have different approaches to providing the best platform to their customers to buy and sell cryptocurrencies.
With competition among these platforms, comes a better experience for its users.
Many cryptocurrency exchanges have introduced features like referral programs and waiving off fees on a transaction to differentiate themselves from others.
Thus, the real benefit is for all the users who are getting more for their time and money.
Not all Cryptocurrency Exchanges are the same
If you have a positive answer to ‘Should I buy Bitcoin in 2021’, you should invest some time looking into your options for cryptocurrency exchanges.
The best one for you would depend on the country you live in and the rules and regulations of the governing body and the exchange’s service.
We have seen that many cryptocurrency exchange platforms are leaning towards making buying and selling Bitcoin more straightforward for the user.
But, each exchange has different structures in the way they charge their fees. Also, almost all of them have limits on the minimum and maximum transaction values. Hence, a deep dive into your best options is a must before you buy Bitcoin.
Highly Volatile nature of Bitcoin price
Before you put any of your hard-earned money into Bitcoin, you have to get yourself around the fact that the risks are very high.
The cryptocurrency prices keep fluctuating, and there are examples of people who have lost money due to their mistakes and hastiness.
Patience is the key, as Bitcoin has been renowned for multiplying your investment over the long term. Even after the drop in prices after the 2017 Bitcoin price rise, people who kept their Bitcoin instead of selling to avoid further losses have already got their money back.
What is at stake for you?
Are you looking at Bitcoin trading as your full-time profession to earn your meal or as the only investment? Then the answer to ‘Should I buy Bitcoin in 2021’ is a big fat NO.
Maybe, you have some extra cash and look to invest it for a longer-term. Maybe you do not depend on its returns. In that case, Bitcoin might be a smart investment for you.
If you think about it, in traditional financial markets, nothing is considered a safe investment. From stocks to commodities and even forex, everything has a flavor of risk attached to it. However, such risks are amplified in cases of cryptocurrencies like Bitcoin.
Hence, we would suggest that you should invest responsibly and invest only as much as you can afford to lose. If you are one of those real adventurers, you can invest 10% of your savings in Bitcoin. But if you do that, you have to pretend that you have already lost your money.
The answer to ‘Should I buy Bitcoin in 2021’ differs from person to person. Not everyone has equal knowledge of the risks and challenges involved in buying cryptocurrencies like Bitcoin. Hence we wrote this article to help everyone make smarter decisions.
Before putting your hard-earned money into cryptocurrencies like Bitcoin, ample research is necessary for everyone. You can’t just register on any cryptocurrency exchange and go about buying and selling Bitcoin and expect good returns every time.
But, if you do proper research, and put some quality efforts into it, buying Bitcoin and holding on to it can lead to a great investment. Even in 2021!
I hope this article helps you and if you have any queries related to it then do leave your comment below. If you have not joined our community then you can now. We are very active there and have been sharing important information there.
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