Is it safe for Cambodians to Invest in Bitcoin in 2021?
Bitcoin is evidently the most successful and popular cryptocurrency in the market. This is because bitcoin has been around for a long time and has increased in popularity. Bitcoin set different records in 2020, and it is still doing so in 2021. It is no news that Bitcoin reached its peak of about $63,000 in April but has currently retraced and is trading above $30,000. These are some of the reasons why many people are showing more interest in bitcoin investment.
Basics of bitcoin investment
In the last 1 year, bitcoin price has rallied from a low of $9,000 to a peak of $64,500, shattering the records of other investment options into shreds. Stock, Real estate, Gold, and stocks are all at the mercy of the inflation and economic meltdown while BTC was riding the moon.
The bitcoin surge that happened a few months ago spurred the interest of people in bitcoin and other cryptocurrencies. These sets of people believe they are late and can’t invest in bitcoin because of its current value. This notion is quite wrong. Bitcoin isn’t just an investment, it is a movement. A movement with the aim of delivering financial freedom to the masses and you can’t put a price on that.
True, bitcoin may be expensive at the moment but it is in the early stage of adoption and still has a long way to go. You can buy bitcoin in Cambodia at the best rate in the market on Remitano P2P.
To make money from bitcoin you can either trade it or invest in it. Bitcoin trading and investment go hand in hand. Trading is basically a form of investment but may be limited to the short term. Bitcoin investment simply means using your money to buy bitcoin with the hope that it will rise and you will be able to sell it at a higher price.
Bitcoin investment could be short-term or long-term, depending on your profits targets. Some people bought bitcoin for as low as $1 and they are still holding it to date.
Now that the price of bitcoin is on the high side, the majority of the world’s population can’t afford to buy one BTC. But we can buy smaller units of bitcoin called satoshis. This means whether you have $20, $50, $100, or $1000, you can still invest in bitcoin.
Think about the risks involved
Bitcoin volatility is the biggest risk factor affecting the leading cryptocurrency. In the past, the value of bitcoin went down about 80%, and since then, there have been other significant price falls. There is nothing bad about bitcoin volatility, this is what makes it profitable. Right now, Bitcoin is over 60% down from its all-time high of $63,000.
There’s also the risk of bitcoin theft. When buying BTC, you have to use a reliable exchange to buy and store your Bitcoin. However, many exchanges have been hacked in the past and billions of dollars worth of bitcoins were stolen.
The safest way to store your bitcoin is in a personal wallet, which could be a cold or hot wallet.
The crypto market is extremely volatile and a surge in price will be followed by a price correction or retrace. However, when bitcoin is on the rise, people FOMO (fear of missing out). They rush to invest in bitcoin when it is bullish but they end up losing because the price falls again.
FOMO leads to making irrational investment decisions. Instead of following the hype, conduct your own fundamental analysis and think it through before investing.
You can follow top crypto platforms, top crypto investors, and websites where experienced investors share their ideas on a bitcoin investment idea.
Base your investment on clear analysis, prediction and forecasts, and fact-based information. This will help you avoid investments based on FOMO.
Is bitcoin the right investment option for you in 2021?
Your level of risk tolerance and the style of bitcoin investment that you choose will determine whether or not it is the right investment option for you.
If you can hold on to your investment for years regardless of whether the market is bullish or bearish, then you can give bitcoin investment a try.
Ask yourself questions like what will be your reaction if the worth of your bitcoin investment drops by 15% or 30% in just one night. If your answer to the question is:
- I will be in a panic to sell off immediately.
- I will lose my sleep
- I can fall sick etc.
Then you shouldn’t bother investing in bitcoin or any other volatile asset.
Diversify your portfolio
From another perspective, if you have extra funds that you want to risk in crypto, you can buy and add bitcoin to your investment portfolio. Make sure to only invest the amount you can afford to lose. Diversification of investment portfolios is important for every investor. It helps you maximize your profits and cushion your losses. If one investment doesn’t work, you will have other investment options to rely on.
You can also diversify your crypto holdings. There are many impressive altcoins you can add to your investment portfolio.
The decision to invest in bitcoin Cambodia now lies in your hands. Spend some time to learn more about bitcoin and cryptocurrencies before you start investing. There is nothing wrong with spending more time to know what is right and if the investment option is right for you. Focus on reliable information from top players in the crypto world. Lastly, as stated earlier, invest only the amount you can afford to lose.
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