Why Bitcoin (BTC) is the Best Investment Choice for Newbie Investors

With the strong price rise experienced by $BTC over the last couple of years, new investors to the crypto space will be thinking of buying Bitcoin or altcoins. Which is the best option?

Altcoins or Bitcoin?

When a new investor looks at the list of cryptocurrencies on their wallet or an exchange for the first time, they will probably be confronted with many options. Which cryptocurrency is a good buy?

The first factor to consider when entering the world of crypto is ones ability to carry out technical analysis to a good standard or to be able to fully understand the fundamentals behind a token. Lets face it, very few if any new entrants to investing or trading will have any idea about this. Therefore, buying an altcoin, or even Bitcoin, for a trade, is pretty much like taking a shot in the dark.

In addition, one should remember that all that glitters is not gold. You may have been told by this or that person that this or that altcoin is a great one to buy. A mistake made by many is to look at how many tokens you can buy. With some altcoins, many thousands of tokens can be bought with a small sum of money, whereas to buy just one BTC currently costs more than $100,000.

Buying thousands of tokens, compared with buying a fraction of one BTC, should not be a consideration. Both supply the opportunity of making money.

However, when buying altcoins (any cryptocurrency that is not Bitcoin) you are going much further out on the risk curve. It is true that altcoins can increase in value much faster than Bitcoin over a short period of time, but over the long haul, Bitcoin has proven to increase in value much more than nearly any other cryptocurrency.

Longer term investing in Bitcoin

If you are not going to trade in the short-term time period, and as mentioned already, short-term trading is most definitely not a good idea for newbies, then long-term investing is probably the way to go.

It might be argued that Bitcoin has already increased quite a lot in value, and therefore what would be the point of buying it now? The point is that you need to compare holding Bitcoin over the longer term with keeping fiat currency in the bank.

Your dollar, pound, euro, or whatever it is, will 100% lose purchasing power over time. Of this there is no doubt, given that governments will need to print vast sums of money in order to save their economies and pay the massive interest payments on their debts.

Is Bitcoin guaranteed to rise in value over the longer term? No, no guarantees can be made on any asset, whether that be Bitcoin, government treasuries, gold/silver, stocks, or real estate. That said, over the span of its life so far, Bitcoin has dramatically risen in value, and has given drastically better returns than any of the assets mentioned.

It is true that in each 4 year cycle so far, Bitcoin has entered a bear market of about a year, and in these bear markets it has lost a large amount of its value. However, the increases during the bull markets have far exceeded any losses in the bear markets.

Therefore, if you periodically buy Bitcoin over the next four years, the probabilities are that your investment will far surpass the value of the same investment in a bank or savings account, as well as in the vast majority of other assets.

Bitcoin also offers other advantages

Finally, it must be said that buying Bitcoin also offers many other advantages. If you keep it yourself, rather than holding it on an exchange, or with any other third party, it cannot be taken away from you.

It is highly divisible, so you can buy very small amounts. Also, you do not need the permission of any third party, whether they be banks or governments, if you want to transact with anyone in the world.

Bitcoin is the future of personal financial freedom. Buying even a small amount now can prove to be a fantastic investment for this future. It is important to do your own research on all these claims and possibilities. Happy investing.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Text source: Crypto Daily™

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