Stocks, Gold, or Bitcoin - What should be your Investment Strategy in Today’s Market

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I have seen my father, my grandparents investing in farms and gold and stocks. While these are still a good option to invest your money and earn something, there is something which is definitely the future of investment and it comes under the hood of blockchain technology. When I talk about blockchain technology, we cannot miss on Bitcoin and the possibility of making money that comes with it. If you will see the track record of Bitcoin in the last three years, it has given approximately six times on the investment in case you invested in Bitcoin.

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I remember investing a little money in Bitcoin when it was twenty thousand dollars and I think I cashed out when it was one lakh or something around that. So I made five times on my investment with Bitcoin in less than three years. And in today's blog, I will share why the volatility of Bitcoin has reduced after the introduction of ETFs and why Bitcoin is now one of the investments to consider for the future.

When we talk about manipulations, cryptocurrencies are famous for it and obviously they both go hand in hand. But recently after the introduction of ETFs, which I think happened around a year ago, the prices especially in Bitcoin are now less volatile. Obviously, it is not completely volatile, it is not completely non-volatile at this moment, but the volatility has decreased and most probably we are going to see it improve as institutional money enters Bitcoin.

On top of that, big countries like America are now working on regulations for cryptocurrencies and that is something which can be considered as one of the positive moves towards the technology as well as the asset that we all refer to as Bitcoin or any other cryptocurrency. Obviously, the one which will not come under the regulation will still stay under the radar of risky assets, but those tokens which manage to get themselves inside the regulatory system will at least be considered safe and we can treat them just like we treat different stocks in the stock market.

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Now let me discuss with you a recent incident where a Bitcoin firm known as Galaxy sold around eighty thousand Bitcoin and this incident took place on Friday. The Bitcoin they sold were worth nine point three billion dollars and it is not a less amount even for Bitcoin. But despite this big sell-off, the market for Bitcoin did not see any big dump and the price only saw a correction of one percent which was obviously not because of this eighty thousand Bitcoin being sold at the market. It was the collective down surge of one percent for twenty four hours.

The eighty thousand Bitcoin probably belong to a whale or a group of people who we can consider as a whale because if someone wants to be a whale for Bitcoin, they have to own one thousand Bitcoin. And here the total amount sold was eighty thousand Bitcoin which is obviously eighty times more than the criteria after which we consider a person a whale in the Bitcoin ecosystem. The point why I shared this incident here is to tell how even a big massive sell-off was not enough to give the correction in the market for Bitcoin.

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Now there are two ways people invest in Bitcoin. There are people who go on with a big amount and invest a lot of money at once and forget about it for the next few years. The second are the people who invest in Bitcoin on a daily basis. They practice dollar cost averaging where a particular amount is being fixed and it is used to purchase Bitcoin on different values, which obviously helps in buying Bitcoin on an average value if we look at the long term game. And lastly, there are people who study the market and invest money from time to time when the market sees correction and in this case, they are the ones who stay ahead of the two we discussed before in making profit.

In either of these three cases, the good thing is that you will be the one who makes profit if you are here for the long run. The long term investment in Bitcoin is probably something which will benefit you and for the maximum probability you should not lose money. Obviously, any digital asset or a stock is not risk-free and there is always a chance of losing money in them. But still we have stocks and crypto which are less risky and Bitcoin is one of the least risky cryptocurrencies at this moment. And so maybe investing in for long term can be one of the things you should consider.

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I have personally decided that I will start doing DCA in Bitcoin and I will start doing it when I sense that the current bull cycle is over and we have entered the bear market. That is the moment when I will start doing DCA in Bitcoin and Ethereum and I will stick with this too for most of the money I have. I have studied a lot in the last few months and years and realized that maybe the best asset to invest in when it comes to crypto is only and only Bitcoin and Ethereum. The rest we can obviously explore in different projects like Leo token or personally I like Arbitrum.

These are projects where you can put your money into, but maybe most of your investment should go in Bitcoin and Ethereum. So that is my personal opinion. At the end of this blog, I want to say that I am not a financial advisor and I am not giving any financial advice to anyone. You are free to invest your money wherever you want. You can invest it in gold, you can invest it in stocks or crypto, but what I feel is the best option in my opinion is what I have shared in this blog.

Thank you and happy trading everyone

Posted Using INLEO