Can you really make money by buying Bitcoin now?

In today's wave of digital currencies, Bitcoin is undoubtedly the most dazzling star. Its price has soared from a few cents to tens of thousands of dollars, attracting the attention of countless investors. However, in the face of such huge fluctuations, many people are thinking: Can I really make money by buying Bitcoin now? This is not only about personal financial decisions, but also a deep understanding of the overall market trend.

First, the price of Bitcoin is extremely volatile and can rise and fall dramatically in the short term. For example, in March 2020, the price of Bitcoin fell from about $9,000 to $4,800, but in the following months, it quickly recovered and even broke through $60,000 in 2021. This volatility attracts many investors, but it also brings huge risks. For novice investors, it is crucial to understand the reasons behind this volatility.

Market sentiment is an important factor affecting the price of Bitcoin. Market sentiment represented by "FOMO" (fear of missing out) and "FUD" (fear, uncertainty and doubt) often leads to sharp fluctuations in Bitcoin prices. When there is good news in the market, investors may buy in large quantities due to fear of missing out, driving up prices; when there is negative news, investors will sell out of panic, causing prices to fall. Therefore, staying rational and analyzing the trend of market sentiment can help investors make more informed decisions.

Secondly, technical analysis also plays an important role in Bitcoin investment. Many investors rely on charts and indicators to predict price trends. For example, technical indicators such as moving averages and relative strength index (RSI) are often used to determine the timing of buying and selling. Although these tools cannot guarantee a 100% success rate, they can provide investors with a certain reference. In fact, many successful investors have gradually mastered the use of these technical analysis tools through continuous learning and practice.

Of course, another important aspect of investing in Bitcoin is to understand market trends. The price of Bitcoin is not only affected by its own supply and demand, but also closely related to the global economic situation. For example, in times of increased economic uncertainty, many investors will choose Bitcoin as a safe-haven asset, driving its price up. Conversely, when the economy recovers, funds may flow to other assets, causing Bitcoin prices to fall. Therefore, paying attention to global economic dynamics can help investors better predict Bitcoin price trends.

In this context, many people began to wonder: Is now a good time to invest in Bitcoin? The answer is not a simple "yes" or "no". For short-term investors, the volatility of the market means that they can make profits through rapid buying and selling, but they also face huge risks. For long-term investors, as an emerging asset, the potential value of Bitcoin may continue to grow over time. Therefore, investors should formulate corresponding investment strategies based on their own risk tolerance and investment goals.

In addition, there are many ways to invest in Bitcoin. In addition to buying Bitcoin directly, investors can also choose to invest through exchange-traded funds (ETFs), Bitcoin futures, etc. These tools have their own advantages and disadvantages, and investors need to choose according to their own circumstances. For example, exchange-traded funds are relatively simple and transparent, suitable for investors who do not want to directly manage Bitcoin private keys; while futures trading is suitable for investors who want to obtain higher returns through leverage, but the risks are also increased accordingly.

Of course, investing in Bitcoin is not just about buying and selling, but also requires investors to have a certain psychological quality. When the market fluctuates violently, many investors are easily affected by emotions and make irrational decisions. Therefore, cultivating a good investment mentality and staying calm and rational are the keys to successful Bitcoin investment.

Finally, it is worth noting that despite the huge investment potential of Bitcoin, investors should also remain vigilant. With the continuous development of the market, changes in regulatory policies, intensified market competition and other factors may affect the price of Bitcoin. Therefore, paying close attention to market trends and adjusting investment strategies in a timely manner are capabilities that every investor should have.

In summary, whether buying Bitcoin now can make money depends mainly on personal investment strategy, market analysis ability and psychological quality. In this era of information explosion, only by deeply understanding the market and constantly learning can you succeed in investing in Bitcoin. Whether it is short-term trading or long-term holding, rational analysis and scientific decision-making are always the principles that investors need to follow. I hope that every investor can find a path that suits him or her in the Bitcoin investment journey and achieve wealth growth.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

According to market data, BTC has risen in the short term, breaking through the $19,000 mark and now at $19,000.96, with a daily decline of 1.37%. Although it is currently in a state of decline, there are still many investors who want to make money through Bitcoin trading. However, for newcomers in the currency circle who know nothing, they are still in doubt about whether buying Bitcoin can make money. It can be said that this type of investors want to buy Bitcoin, but are afraid of losing money, and if they don’t buy it, they are afraid of missing this opportunity to make money. So, can buying Bitcoin now make money? The following editor of the currency circle will give you a comprehensive analysis of whether buying Bitcoin now can make money?
 Comprehensive analysis: Can you make money by buying Bitcoin now?
1. Long-term holding of Bitcoin:
Compared with short-term trading, quantitative trading, and futures, hoarding coins should be a relatively low-risk way to invest in Bitcoin. But it still has risks, such as the Bitcoin halving effect will fail in four years, the cyclicality will not hold, and the price will not break a new high.
Even though historical data has proven that selling after holding for four years at any point in time is profitable, some people still doubt whether this idea will continue to work in the future. In other words, whether the Bitcoin halving effect can continue to be replicated is the biggest risk of hoarding coins. In the circle, only a small number of people who have personally experienced the previous two successful halvings will be extremely sure to believe this, while the rest of the people have doubts in their hearts.
Bitcoin is still an extremely high-risk investment. It is extremely volatile and unstable. For this reason, too many people who hoard Bitcoin will tell you that if you want to invest in Bitcoin, you need to be prepared for the money to go to zero at any time. If you can have this mentality, then you can enter the market.
But the biggest problem with hoarding coins is that ordinary people rarely have an asset that is large enough (if the asset is too small, there will not be much return on the investment) but does not need to worry about it at all. After all, for many people, if the asset is large enough, it is impossible not to worry about it.
When you choose the simplest idea of "leaving it there", you need to lock up your assets unconditionally for 4 years or even longer. During this period, you cannot withdraw the money for any reason, and the feedback cycle that determines whether the investment is profitable is also extremely long. For ordinary people, hoarding coins will lose the liquidity and opportunity costs of a large number of assets, as well as the "sunk costs" that will be lost regardless of the gains. These will have a great impact on your psychology, and the volatility of Bitcoin will also have a great impact on investors' psychology.
This also leads to the idea of hoarding coins, which seems simple but is difficult to accomplish.
2. Short-term holding of Bitcoin:
As a financial investment product, Bitcoin was hyped up and went straight to the sky. But then it fell down, and no speculators looked back. Why do domestic speculators not touch Bitcoin now? Hype requires conditions, and the prerequisite is information and regional asymmetry. For example, Dou Ni Wan, Suan Ni Hen, etc., use regional asymmetry to drive up prices. Bitcoin had this condition in the early stage, because there were few platforms in China, and even fewer people who understood Bitcoin, and Bitcoin could only be obtained through very few channels.
However, as time went by, people found that the circulation of Bitcoin became very easy, it became very simple to obtain coins, and mining machines could be bought everywhere, so the opportunity cost of price increase was naturally lost. Therefore, both the price of Bitcoin and the price of mining machines gradually lost the capital for speculation in China.
Secondly, hype also requires mystery, and it is best to be unable to identify. For example, the Huanghuali that was hyped up in the market some time ago, Hainan Huanghuali, people are confused. Not to mention gambling on jadeite raw stones, if you don’t chisel the stone open, you don’t know whether it is a "crack of sky" or a "fingernail" wrapped in the stone.
So speculators can call the shots, make a lot of noise, and work hard to make money.
 How to make money by speculating in Bitcoin?
1. Invest within your means
The reason why this item is ranked first is that it is of utmost importance. The ideal mentality for cryptocurrency investment is: as long as your money is converted into cryptocurrency, you should consider it lost forever, and there is absolutely no guarantee that you can get it back.
Because losses do not only come from market declines, but also from non-investment factors such as hackers, government regulatory policies, project development failures, and fraud, all of which can cause you to never see the money you invested again.
If you cannot afford the worst loss you can afford and it is beyond your ability, then you need to take a step back and re-evaluate your current financial situation and asset allocation, otherwise what you are doing is a DB rather than rational value investment.
2. Ensure the safety of your assets
Many investors do not properly store their digital currency assets, do not back up their keys, do not keep them cold, and do not even enable two-factor authentication. The cryptocurrency industry is full of the smartest computer geniuses.
This also means that the industry is also full of hackers and scammers who want to steal and defraud your money. This requires you to use reputable exchanges to trade, store your digital currency assets in a secure wallet, back up your keys offline, and use a cold wallet if conditions permit.
3. Know what you are buying
Don’t buy a digital currency you don’t understand. Many investors have bought some so-called “hundred-fold and thousand-fold coins” without really understanding these packaged and hyped currencies. They just listen to the recommendations of some so-called big Vs or some unscrupulous WeChat groups.
I have seen many crowdfunding coins circulating in the group, which are listed in statistical tables, with profit forecasts of dozens or hundreds of times. Most of them are written without basis, but are forwarded by countless leeks. I really don’t know what mathematical model these people use to calculate how these coins can grow to these multiples in what way and how long.
This is just like the old man who tells fortunes at the temple gate. There are some people in the world who will brag about anything as long as they can make money. There are some people in the cryptocurrency world who take every opportunity to fool less informed investors. They will tell you what to buy or claim that certain coins will go to the moon, but in fact they are just trying to increase the price so that they can exit with a profit.
Today's cryptocurrency market is highly speculative in nature, and a good investor should learn to do their own research and take full responsibility for potential investment results. Even the information provided by the most powerful V is at best a reference, not a promise, so you should make your own research and judgment before making a decision. You should never spend money on something you don't understand.
4. Make sure you have a good investment portfolio
The importance of using a portfolio to reduce risk and maximize profits is a matter of common sense.
5. You can’t always sell at a high point in spot trading
Even the best professional traders or hedge fund managers can't do this. In the investment industry, you need to be appropriately greedy, but being too greedy is often the beginning of investment failure. When a digital currency you buy starts to grow, your inner greed grows with it. If the price of the currency has risen by 50%, why not consider taking a profit?
Even if the target is set at 100% or 200%, if the price of the currency does not reach your set target, you should at least sell a certain percentage to extract some profits. Because in the future price trend, you may lose the profits you have earned, or even turn profits into losses. If you want to continue to obtain potential profits and avoid the risk of falling, develop the habit of taking profits in batches.
6. Stick to value investing
In the process of investing in digital currencies, you will eventually find several different categories of currencies. For these currencies and the projects behind them, you believe that they have excellent teams, great visions, beautiful publicity and strong R&D capabilities.
These valuable currencies should be put into the medium- and long-term investment portfolio, so that they can slowly become fine wine. Even if the price falls, do not consider panic selling. Any currency in the established medium- and long-term investment portfolio should remain unchanged and firmly held.
7. Be good at learning from mistakes.
Regret is not the ultimate way to deal with mistakes. When you make a mistake, you need to analyze and evaluate the reasons for the mistake, find out why such a mistake happened, avoid making the same mistake again, and use this experience as wealth for your future investments. Evolve yourself into a more mature investor because you now know more than before. No one is perfect, and no one can win every trade. Don't be discouraged by losses, and treat these losses as tuition fees you invest in yourself.
8. Learn to set stop loss points
The most obvious benefit of this is that it can reduce your losses. But more importantly, the stop loss point is also a reference point that can measure the effectiveness of your investment operations so that you can adjust your investment strategy in future transactions.
When the market enters a downward trend, stop loss and repurchase at a lower price to avoid losses and achieve profits. This is very practical in short-term operations, but if you are confident in a certain coin and want to lock it for long-term development, you don’t need to consider the stop loss issue or set the stop loss point lower, or even cover the position at a low price to reduce the average cost.
Through the above introduction, I believe everyone has some understanding of the question of whether buying Bitcoin can make money now. The editor of the currency circle kindly reminds investors that when choosing a digital currency to invest in, you must check which exchanges the digital currency is listed on. This is mainly because sometimes the project party will build an exchange themselves to reap the profits. Therefore, when investors choose a currency, they must first check whether the currency is listed on a mainstream exchange.

In addition to market sentiment and technical analysis, investors should also pay attention to the fundamentals of Bitcoin. The supply of Bitcoin is limited, with only 21 million coins, which makes it scarce to some extent. As more and more institutional investors enter the market, the demand for Bitcoin is also increasing. For example, well-known companies such as Tesla and Square have begun to include Bitcoin in their balance sheets, which not only enhances the recognition of Bitcoin, but also stimulates the further development of the market. Therefore, understanding the fundamentals of Bitcoin will help investors judge its long-term value.