Should you invest in Bitcoin now?

Our expert gives attractive investment tips every week. This time: Should you invest your money in Bitcoins now? And: how do you avoid serious mistakes?

YouTube blogger Thomas Kehl gives investment tips every week. This time it’s about Bitcoin. In view of the recent halving of the Bitcoin price since reaching its last all-time high in April (from 53,000 to 29,000 euros), many hobby investors hoping for a quick buck are wondering: Should you invest in Bitcoin now? “Buy the dip,” has been the motto in the crypto communities since May, after the Bitcoin went down again after an unbelievable rally.

As a decision-making aid as to whether or not one should (still) invest in Bitcoin, the past price development of Bitcoin has so far turned out to be a deceptive indicator. I myself fell into this trap when, after my first contact with the crypto currency in 2016, I rated Bitcoin at 300 euros per unit as “too expensive” and didn’t buy the currency. If I had got in anyway, I would certainly not have kept my coins to this day and thus would not have benefited from the overall growth, but would have been happy about my speculation and quickly sold the bitcoins again. Or maybe I would have pulled the ripcord in panic when the price fell back to the EUR 200 mark a few months after the purchase.

There are more nerve-friendly investment opportunities

So if it’s not the highly fluctuating price of a Bitcoin that tells me whether to get in now or not, what is it? Unfortunately, I now have to disappoint some readers. Because the fact is: With Bitcoin there is no fundamental investigation or annual report that can be analyzed.

So the answer to the above question is relatively simple: It is the technical understanding of Bitcoin and the advantages and risks that should be the decisive investment criterion. If you have dealt with the subject of Bitcoin and don’t get sweaty hands thinking about how to keep your Bitcoin safe, you have already met the first criterion for an investment. I didn’t have this understanding in 2016. So, like so many crypto speculators today, I would have become the plaything of extremely high volatility.

Anyone who has not yet dealt intensively with Bitcoin as a decentralized blockchain technology and does not know to what extent Bitcoin differs from all other cryptocurrencies should not invest any significant part of their assets. The same applies here as with any other asset class: “Only invest in things that you understand.” This principle applies particularly to Bitcoin, because in addition to the high volatility there is also the risk of a total loss due to your own mistakes or attacks by hackers to suffer.

My tip would be that anyone considering investing should get some experience and experiment with a little bit of money before they really get involved. If you want to get rich quickly, you should look around for investment opportunities that are easier on your nerves. Personally, I’ve always invested a little in Bitcoin (in the single-digit percentage range of my total assets). Even at more expensive courses than you can currently find.