IS BITCOIN TO ISKY FOR INVESTOR?
Bitcoin is often considered highly risky for the average investor. According to James Ledbetter, editor of the fintech newsletter FIN and CNBC contributor, Bitcoin is "a highly volatile, highly risky investment." Historically, Bitcoin has experienced significant price spikes followed by sharp declines. For example, after reaching nearly $20,000 in 2017, Bitcoin's price plummeted, losing a third of its value in a single day. By 2018, it dropped to as low as $3,122, erasing billions of dollars from the total cryptocurrency market value.
While such volatility can lead to substantial gains, it also poses a risk of significant losses. Investor Mark Cuban likens Bitcoin to gambling, advising that one should only invest money they can afford to lose. Ledbetter emphasizes the need to be mentally and financially prepared for potential crashes, which could happen at any time.
Despite Bitcoin's high price, it's possible to buy fractional shares, called satoshis, allowing investors to purchase as little as $5 worth of Bitcoin, as noted by Anthony Pompliano, co-founder of cryptocurrency hedge fund Morgan Creek Digital Assets and a Bitcoin investor. Pompliano advises starting small, conducting thorough research, and learning about the cryptocurrency. He supports holding Bitcoin long-term, believing that its limited supply will drive up prices as demand increases.
#Bitcoin❗