Historically, anyone who bought Bitcoin and held it for five years or more made significant returns on investment. If you bought Bitcoin December 2015 you could have bought it for 400 USD if you sold it six years later for 60,000 USD that would be a 150x gain! The stock market does not perform like this; Amazon is a success story for stock market traders with just only 5x gain. Bitcoin has continuously proven itself to be the greatest investment of the decade.
Before you buy Bitcoin you need to make sure you are ready for it. Bitcoin is a highly volatile asset and if you buy at the top and sell at the bottom you can lose a lot of money. For instance, if you bought Bitcoin in December 2017 at $19,223 you could have given up and sold it at $3,500 USD in December 2018; that would be an 82% loss. However, the market is now over 19,233 USD up to 57,699 USD so if you bought at ATH of 2017 $19,233 you would have a 300% return on investment at the current price
My personal rule of thumb is that if you can’t afford to buy Bitcoin and hold it for five years or longer you shouldn’t buy it. If you end up needing extra money because of an emergency and have to sell your Bitcoin it just might not happen at a good time. What if someone put their whole life savings into Bitcoin on December 2017 and then desperately needed the money in 2018? They would have lost 82% of their life savings!
- If you don’t have enough money in savings to cover emergency expenses you shouldn’t buy Bitcoin.
- If you don’t have healthcare you shouldn’t buy Bitcoin.
- If you have a large and expected expense coming up you shouldn’t buy Bitcoin.
- If you are not emotionally stable you shouldn’t buy Bitcoin.
- If you can’t buy Bitcoin and hold onto it for years even though it’s losing value than you shouldn’t buy Bitcoin.
I bought some piece of Bitcoin on January 2018 at 10,000 USD. It took the market until June 2019 to get back to that price and there was no significant profit to make until December 2020. If you are buying Bitcoin you need to be OK with the fact that there will be another bear market and you will see your portfolio lose value. If you are able to hold on to your coins through a bear market you could make significant profit.
How to Buy Bitcoin
If you are ready to buy Bitcoin and hold onto it for five years or more than you should check out Binance. With Binance you can:
- Buy Bitcoin with credit card.
- Buy Bitcoin with several different currencies including US Dollars, Euros, Rubles, Pounds, and Rupees.
- Buy Ethereum, Litecoin, Bitcoin Cash and other cryptocurrencies with your country’s currency.
- Spot trade Bitcoin and USDT for hundreds of different cryptocurrencies.
Good luck on your Bitcoin journey and don’t sell in a bear market!