Yes, you should buy Bitcoin (BTC) and other cryptocurrencies in 2020-21 and beyond. If you invest in bitcoin and other cryptos in the long run, you can get a higher return. In fact, it’ll provide a well-deserved risk-opportunity balance to your portfolio. With regular investment in BTC and other cryptocurrencies, you can start earning passive income, which has the potential to make you rich. Long-term prospects and returns from cryptocurrency investment are much higher than investing in stocks and stock markets.
Cryptocurrency is always in the discussion, especially in the personal finance and investment domains, in the last few years.
2027 Projection for Crypto Market:
The global cryptocurrency market was US$754 in 2019. It is expected to increase at a CAGR of 11.2% and is projected to reach US$1,758 million by 2027.
Year-To-Date BTC Rally in 2020:
Till now in 2020, the market price of Bitcoin (BTC/USD) has increased by 170% YTD (year-to-date). If you had invested US$100K in Bitcoin at the beginning of the year, you could have earned US$17,000K by now.
BTC Rally since COVID-19 Crash:
Bitcoin price crashed in March due to the COVID-19 crisis. From yearly lows after the COVID19-induced crash, Bitcoin has rallied more than 400% till now. If you invested in Bitcoin just after the crash, your US$100K investment could have become US$40,000K by November-end in 2020.
Bitcoin Reaches All-Time High & Higher Projection:
BTC price has increased to an all-time high on December 1, 2020, and touched US$19,920.53. Though US$20,000 is acting as a strong resistance currently, many financial and crypto analysts believe that US$25,000 is the next logical target. Some crypto experts are also of the opinion that by 2021-end, the BTC/USD price will touch the US$100,000 target. So, if you invest in Bitcoin now, you can expect your portfolio’s value to increase by multiple times by the end of 2021.
YTD Performance of Other Crypto Coins:
Bitcoin is not the only digital currency that is giving a robust performance in 2020. There are different types of cryptocurrency in the market that have performed well this year. Some of them in the crypto market this year are:
Bitcoin and the other 10 cryptocurrencies mentioned above are outperforming all other asset classes in 2020. To date in 2020, the Gold and MSCI World Index for securities have grown by 17% and 12.7% respectively. Bitcoin has outperformed the Gold and MSCI World Index for securities by 10-times and 13-times respectively.
Now, it’s up to you to do the maths and come to a conclusion about investing in cryptocurrencies. Invest in bitcoin to beat inflation and swell your investment portfolio by multiple times in the coming years.
To trade bitcoin or invest in bitcoin for a longer time period, you should use a renowned and reliable crypto exchange account or online broker account, which you can fund with the help of bank transfer (from your savings bank account or checking account), credit cards, business credit cards, debit cards, and other payment options. They should choose an exchange wisely. Crypto investors can also buy Bitcoin from Bitcoin ATMs. Their greatest advantage is that they can be done anonymously.
If you have invested in bitcoin and holding bitcoin for a short period of time, you can use hot wallets such as mobile digital wallets. You can also keep them in your cryptocurrency exchange’s wallet. In case, you are doing longterm investment in BTC, always choose cold wallets such as hardware wallets (especially from Trezor or Ledger).
For a more informed move, you can seek help from asset managers, wealth managers, or financial advisors. They can guide you when you buy and sell bitcoins and other digital assets. Inquire whether you should include cryptos in your retirement accounts or IRA accounts (such as Roth IRA). On the basis of your age and risk potential, they can guide you on whether you should include cryptocurrencies in your portfolio.
In fact, central banks are also offering CBDCs (Central Bank Digital Currency) in various countries. Look into their prospects and ask your financial advisor whether you can invest in CBDCs.
If you are day trading, you can’t afford to lose all your money. So, allocate only a small portion of your tradable money in daily trades. You can also take trading courses to learn more about crypto investment, various investing strategies, and improving your personal finance. To maintain maximum security, don’t share your private key with anyone else, and try using cold wallets such as hardware wallets.
When you invest in traditional financial assets such as stocks, bonds, real estates, or others, it is generally time-consuming, complicated, and bothersome. In the case of real estate investment, they have a high entry threshold. You can’t buy it for US$100.
However, all these complexities are not there with bitcoin and other cryptocurrencies. You are not required to sign papers, visit banks, or deal with any institution. To invest in bitcoin and other cryptocurrencies, you simply have to create an account, get a crypto wallet to store your bought crypto coins, and track your crypto assets effortlessly.
Crypto trading and investment is so simple that you can also automate the trading process and keep earning even when you are sleeping. The cryptocurrency market keeps on trading 24×7. With the help of AI-driven automated trading bots (such as NapBots), you can let the bots scan the market in real-time and automatically trade for you. Therefore, you can keep earning money when your peers sleep.
The liquidity of cryptocurrencies, especially Bitcoin, is very high, making them easy to buy and sell. Every time you are at the crypto market to buy or sell your crypto coin, there is always a counterpart waiting to buy or sell your cryptocurrencies. You can also carry out algorithm-based trading, thanks to the availability of a wide array of tools and tactics that makes it easy for you to buy or sell cryptos. While price volatility is good for day traders, it can be painful too for beginners. In fact, the price of BTC moves extraordinarily with the tweets of Elon Musk, the CEO of Tesla (which is one of the largest holders of bitcoin).
The protocol of Bitcoin restricts the maximum availability of BTC coins at 21 million. With high demand and possible mass adoption (as institutional investors are parking their money in this asset), there will be excess demand. It will give rise to scarcity and in turn generate value for Bitcoin. The 21-million maximum limit can’t be changed by a single person or central authority. Therefore, there will always be a scarcity of Bitcoin in the crypto market, thereby creating upward pressure on its price always.
You can earn passive income from cryptocurrency by staking it to lending it out. Let’s check out 6 popular ways of earning passive income from your crypto:
Bitcoin mining refers to the process of using the computing power for securing a network and in turn receive a reward. It is one of the most tried and tested methods of earning passive income in the cryptocurrency market. You’ll need an initial investment as well as some technical expertise to set up and maintain mining equipment. Mining is a resource-intensive way of earning cryptos and therefore tough to inch forward in a highly competitive mining market, dominated by corporations.
Staking is yet another popular way of earning passive income through cryptocurrencies. Staking usually involves setting up a staking wallet and then hold coins in it. In some cases, you can also stake by adding or delegating funds to a staking pool.
If you are looking for an easy way to make passive income, staking is one of the most viable ways. With minimal effort, you can increase your cryptocurrency holdings.
There are some bitcoin exchanges that offer staking services to do this for you. All the technical requirements will be taken care of by them and all you need to do is keep the crypto coins on the exchange. A wide array of cryptocurrencies are supported by Binance Staking, which will help you earn staking rewards.
Many peer-to-peer (P2P) lending platforms are there that enable you to lock your funds up for a specified time period so that you can earn interest payments. The interest rate you earn through lending can either be set by you based on the current market rate or a fixed rate (as per the terms set by the platform). The lending procedure to earn passive income is most suitable for long-term cryptocurrency holders.
There are some cryptocurrency businesses that offer rewards to their users if they bring in more users to their platforms. If you introduce a new user to the platform, you get a referral reward.
Lightning Network is an off-chain micropayment network, a second-layer protocol that runs on top of a blockchain. Therefore, you can use the lightning network for fast transactions, which have not been transferred immediately to the underlying blockchain.
The Lightning Network’s capacity and liquidity increase by using the lightning nodes. This happens because these nodes help to lock up Bitcoin into the payment channels. The fees of the payments that run through their channels are then collected.
If you are a non-technical bitcoin holder, it can be a challenge to run a Lightning Node.
There are many AI-driven trading bot platforms (like NapBots) that enables you to trade in autopilot mode. The AI-driven bot helps you earn money 24×7, even when you are sleeping. You can earn passive income round the clock without requiring any significant supervision.
NapBots is the ultimate crypto trading bot that scans the market in real-time and automatically trades for you, helping you to earn money 24×7. It gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.
With the help of NapBots.com, you can connect to major exchanges such as Binance, Bitmex, Bitfinex, OKEX, Kraken, Bitstamp, and Bitpanda. Even with zero skills, you can start trading like a pro and earn money with this unique trading tool.
If you are a novice in the cryptocurrency market, you can put your cryptocurrency trading on autopilot, get excellent ROI, and keep earning your passive income round the clock, even when you are sleeping. However, always keep in mind that NapBots is not a get-rich-quick scheme. You can have a look at the reviews on NapBots to make a wiser decision.
If you still need assistance, you can refer to the following guides: