Bitcoin was to begin with presented in a 2008 white paper by a group or individual known as Satoshi Nakamoto. It is computerized cash that permits for peer-to-peer exchanges on the Web Blockchain can be defined as a shared ledger allowing thousands of connected computers or servers to maintain a single secured, and immutable ledger.Blockchain is a database of all transactions in a digital ledger.No single entity such as banks and governments can control it as its blockchain is distributed across a network.It has a finite supply of 21 million and therefore cannot be inflated.You can buy a fraction of one bitcoin making it ideal for new crypto investors.
Bitcoin Investment Planning
Investors should consider a few factors for optimal Bitcoin investment planning.
- Risk tolerance
Volatility have mainly three types they are relevant to the crypto market ancient volatility implied volatility and realised volatility.Each of these types of volatility measures the degree to which the price of a crypto fluctuates over a given period of time but they do so in different ways.
- Timing
Many of us only hear about Bitcoin when its price is booming as opposed to when it is stable or declining.This is because the media tends to only cover existing trends.The crypto market experiences repeated cycles lasting for 1 to 2 years. These cycles consist of a fast price surge, and these cycles also decline just like in any other market.So timing is vital when investors decide to buy Bitcoin.It is crucial to monitor these market cycles to find the ideal time to buy Bitcoin when you ask how much to invest in Bitcoin.
- Diversification
Investors are not only investing in crypto that means Diversification but also allocating their funds to different asset classes such as gold stocks and real estate.It is highly recommended to diversify your portfolio and not invest all your capital in one asset.
Learn more about How to buy Bitcoin in India
Bitcoin investment benefits
Many benefits of Investing in Bitcoin offers such as:-
- Bitcoin has witnessed significant growth since its launch. Moreover it is a deflationary asset and has intrinsic value.
- It is a decentralized asset, and no single authority controls it. Central banks control the operation of traditional assets like the US dollar.
- Central banks print new money to increase supply as traditional currencies experience inflation.This process devalues the currency, making it less valuable as inflation increases. Bitcoin is protected from hyperinflation due to its predictable fixed supply.
How Much to Invest in Bitcoin?
Experts say you should invest around 5% to 25% of your capital in Bitcoin. They consider 5% as safe and 25% as risky investment strategies. So it is ideal to invest in this range ideally closer to the 5%–10% mark in Bitcoin.Ultimately the decision is with the investor and they should consider the factors mentioned in this blog before taking a decision.
You can trade BTC to INR with ZebPay India’s oldest and most trusted crypto exchange.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky.There are no regulatory recourse for any loss from such transactions.Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided with no guarantee of completeness accuracy timeliness or of the results obtained from the use of this information.
