Bitcoin is now down to the price point of $29,000/coin where it was approximately at the end of 2019, wiping out all the gains it made during the roaring following year, and its slow but long-term decline since that high point. It begs the question of whether the rise was a one-time blip and now the fanciness of crypto has worn off. Many have decided the whole thing was yet another speculation fad, gone and disappeared like the real estate bubble and investment blips before.
As the premier old crown of cryptocurrency struggles, many have forgotten how cyclical Bitcoin can be. The term crypto winter is not new; it came around in 2017 after the first big spike crash for the big coin, and it’s obvious the next winter has arrived. However, that doesn’t mean the end of Bitcoin has arrived as many skeptics now predict. The concept of cryptocurrency remains a strong and viable one, especially given that it operates on a decentralized platform, which is something that is the opposite of how fiat currency banks want to work.
The thing to understand about the first cryptocurrency is that it moves in spikes and drops. Many want it to work like a long-term rising mountain, and Bitcoin does do that for extended periods of time. That was clearly obvious in the run from late 2019 through 2020. However, it doesn’t retain its wealth. It drops, restarts, and climbs again. Understanding the nature of this type of investment requires an entirely different approach than a traditional buy-and-hold. Granted, that can work from one dip to the next spike, but trying to time a buy can be horribly inaccurate. Instead, one has to approach Bitcoin in terms of daily and weekly changes. Catching frequent opportunities, letting go, catching new opportunities, and repeating. This approach also requires a solid working exchange that can handle fast trades.
Exchanges like Azondo, Coinex, Kucoin, Bitiq, and others all provide deep understanding and, second by second, fast trading tools for crypto exchanging. Not only can one see what’s happening with Bitcoin market movements, they can see it internationally as well as how Bitcoin relates to pairing and other coin markets as well. For anyone who’s been watching the markets over the last two or three years, a strong correlation occurs between Bitcoin and the other big player, Ethereum. Much of this is a competition between big investors moving money back and forth, in and out of the coins as they dip and then create new profit runs. Again, having a fast-responding tool like Azondo and other exchanges is key to be able to move timely.
There’s no question that government involvement is going to have an influence on Bitcoin’s price and performance in the future. And that’s going to continue to create volatility in the coin’s price, as well as lots of uneasiness with regards to how to treat it as an investment. Utilizing trend projections aspects that Azondo gives insight into can help. Alerts, triggers, limit orders, and stops all provide control and limit risk for an investor continuing with Bitcoin or even one starting for the first time. There is no late point in the game with Bitcoin; it’s just another window in another rise and dip cycle with the cryptocurrency.
Of course, there are other options than Azondo for Bitcoin investment. The key factor is to work with an exchange that is responsive. Some of the bigger players might be more visible. However, when markets get extremely hot, these big exchanges start locking up, trying to protect their exposures. That in turn results in trading delays, which can dramatically shift an investor’s position in the coin from one minute to the next. So, working with a nimble exchange that matches the nature of the crypto markets is strongly advised.
