From time to time, you get to see promotions like the ICE Casino promo code where you get to maximize your deposits. However, what happens if your credit card doesn’t go through and bank transfers take days?
Although, you can proceed if you have cryptocurrencies, such as Bitcoins. It’s become one of the most common deposit options in the iGaming industry. But the question is: is investing in BTC worth it? What are the risks, strategies, and potential returns? Read on to learn all about it.
Risks in Bitcoin Investing
The very first risk of investing in any crypto is market volatility. The price of Bitcoin fluctuates a lot. It would have been great if the fluctuations were always upward, but no.
Apart from this, here are the other risks you must consider:
- Regulatory risks – worldwide, governments are making a move to regulate cryptocurrency, not just BTC. Lawmakers are promulgating rules to help identify crypto owners, mostly because they do not want it to be used for illegal actions, such as funding terrorism.
- Security – not all Bitcoin wallets are safe. They are also subject to hacking. Pick one that has a highly positive reputation for safety and security. Do not save your bitcoins in your drive. If that drive fails or stops working, you can no longer retrieve your BTCs.
As far as volatility goes, you must be aware that Bitcoin is so unstable that the price can swing downward to $30,000 in as short as 24 hours. The thing is that it does not swing back up right away. Be prepared to deal with a paper loss like this, it is a serious risk that can take a while for the price to recover.
In addition, you must also take precautions securing your computer or phone. Do not download suspicious applications that allow scammers to “record” or “log” your passcodes. Even if the crypto wallet is safe, hackers may be able to get in if they know your passwords.
Strategies for Bitcoin Investing
What strategies should you apply in Bitcoin investing? Generally speaking, there are three that you must consider. These are:
- HODL;
- Dollar-cost averaging;
- Diversification.
1. HODL
This is not a real word. It means “hold,” or long-term strategy. It became a term when one investor on Twitter kept misspelling “hold.” He was trying to tell investors not to panic. Now, the term HODL is always used to describe long-term holding.
A strategy like this requires that you do not panic when there is “blood on the streets.” If the prices go low, stay put and do not do anything drastic. Do not sell your BTCs. Let the fluctuations subside and wait until the prices go back up.
2. Dollar-Cost Averaging
This is an approach where you invest the same amount of money regularly to buy Bitcoin, regardless of the price. It is a strategy that supports long-term holding.
The way it works is that no matter what happens, you invest a specific amount of money. As the prices go up and down, you will still come out as a winner in the future. In addition, you must buy more Bitcoin when the prices are low. Overall, this approach helps you ride the waves and find a balance in volatility.
3. Diversification
The third approach to succeed in investing is to diversify. As the saying goes, do not put all your eggs in one basket. Instead of just buying Bitcoin, you must also invest in other cryptocurrencies like Ethereum. As always, you must do your research before jumping in.
Possible Returns from BTC Investing
How much can you earn from Bitcoin investing? While it is impossible, one can rely on statistical and historical data. Bitcoin would never have been popular if not for the price increase over the years. Here are some facts to consider:
- BTC has a limit of 21 million units.
- It has grown from $0.01 per unit to $69,000.
- There is institutional interest in it.
Since Bitcoin has a limit of 21 million units, there is a scarcity factor. Experts project that it will be capped by 2140. As such, it is a good strategy to accumulate them now. By the time Bitcoin reaches 21 million units, no more BTCs can be produced.
The problem now is this: will BTC still be valuable at that time? It depends on its perceived value. Many people say that it is digital gold. However, it is not a tangible resource and can be easily replaced with another cryptocurrency.
Bitcoin investment is a high risk, considering it’s volatile and speculative. The returns, however, are huge. It is so because the risk is also high. The trick to succeed is to find a balanced approach. As always, you must buy when the prices are low and only sell when the prices are high.
