Bitcoin Strategy –
by Joff Paradise | 23 Nov, 2021 11:11 am | News
Most crypto-enthusiasts have long recognized the potential for having Bitcoin as part of their investment and/or retirement strategy. Given bitcoins have a dollar-denominated value that keeps rising, and is now trading on worldwide exchanges as well as being adopted by hedge funds and institutions, should you consider it a prudent investment asset? What’s the best way to enter this market?
If you were to invest, employing a good Bitcoin strategy is certainly appropriate for the “alternative” portion of your portfolio. Just as financial advisors advise clients to have a small portion – typically about 10% – in assets such as gold, real estate or hedge funds. With a high level of growing activity across investment, adoption, and regulation landscapes – bitcoin has experienced significant price appreciation this year – up more than any other single asset.
By employing dollar-cost-averaging to purchase and HODL, it is an investment from which one can benefit despite the ups and downs of price fluctuations.
Bitcoin Strategy Considerations
Has the time come to finally declare bitcoin a serious investment option? At the very least, it is time to realize that changes are happening rapidly, and investors need to pay attention to disruptive technology in order to capitalize. History may very well prove crypto-currencies like Bitcoin to be another Internet-like opportunity – something many didn’t expect to see happen again so soon, or of such magnitude. Investors that stay tied to the status quo investment options because they don’t understand these new technologies will miss out on huge opportunities. Educate yourself and learn what is happening with bitcoin, cryptocurrencies and blockchain technologies – it could be the retirement investment Bitcoin strategy of a lifetime.
There is a good case to be made that bitcoin will go much higher than the $8,473 at the time of this post. Mainstream acceptance is growing, and that is what it will take for bitcoin to become a major player in the global currency market. Does the fact that bitcoin has the potential for massive growth make it a good investment, especially for retirement? Typical retirement investments grow “slow and steady” – and won’t make you rich overnight, but are likely to grow at a steady pace and eventually become a nest egg. One should avoid putting retirement savings completely into any one asset, and certainly an asset as volatile as bitcoin. However, investing a small percentage could turn out to be extremely lucrative, and grow much faster than traditional options.
One strategy is to take a small amount of savings, invest in bitcoin, and use the gains to generate more bitcoin. This is a strategy many novice traders embrace – and it works but requires some level of expertise. By utilizing sophisticated, automated trading software, traders are acquiring bitcoin to grow their initially invested amount, without using additional assets to buy more. This means traders that practice risk management use the “house money” to increase their bitcoin holdings after taking profits to recoup their initial investment.
Using strategies that maximize potential and minimize risk can set the stage to take advantage if the price keeps going up – without putting your own retirement at risk if it doesn’t. The price of bitcoin is setting new records almost weekly, and it’s not just day traders and cryptocurrency enthusiasts that are getting involved. Explore the opportunity to see if this is an investment option for your specific goals.