“Buy Cheaper, Sell More Expensive”: Is It Possible To Make Money On Bitcoin During The Year And How Much?
Buy Bitcoin and get a big money in a couple of months – everyone who has heard about cryptocurrency must have thought about it. Just for a minute. How real is earning on Bitcoin, and how long do you need to “wait” for your profit?
Are the big “players” ready to invest in Bitcoin?
As it “matured”, Bitcoin increasingly influenced the traditional investment model. The crypto asset has become a serious challenge for institutional investors since the digital currency does not provide for quarterly profit, and loss statements operate without an office and do not require a team of analysts. As a result, for many inveterate stock gamblers, Bitcoin remains a “dark horse” and is assessed as an asset of the future.
Despite the skepticism, more determined investors buy Bitcoin for long-term storage to sell it profitably at the highest peak price. In terms of the financial market, in percentage terms, investing in Bitcoin is still inferior to traditional assets. However, the cryptocurrency has created a stir among traders, for whom the Bitcoin price movement model is a great way to make good money.
“Buy cheaper, sell more expensive”
Of course, the return on investment comes first: for traders, the asset rate is not so important if it brings them profit. Is the “buy today, sell – tomorrow” strategy to Bitcoin – this is always a working model, with the help of which the owners of a crypto asset can count on regular profits. Let’s take a look at this with an example of Bitcoin market behavior in 2020.
Bitcoin’s price movement over the past 8 months resembles a roller coaster: highs to new highs were replaced by record lows and protracted consolidations. January began with a Bitcoin price of $7,500, in March, the price fell below $4,000; there were also soars to $10,000 and almost three months of struggle for this support level. Also worth noting is the recent rise just above $12,000, followed by a drop below $11 000. So, how much could you make if you bought Bitcoin in early 2020?
As of today, Bitcoin is in the $10,000 price range. So your profit on September 21st would be $2,993 if you were playing long and not taking part in the daily trading sessions. Good result, isn’t it? Another scenario is that if you had finished your long position on August 31st before Bitcoin dropped below $12,000, you could have made a profit of just over $4,500. It’s even better, isn’t it?
If you consider monthly returns, you would also be in the black: 5 out of 8 months were profitable for Bitcoin relative to the starting price in January 2020. Thus, the numbers speak for themselves, whether to bet on buying Bitcoin or not is everyone’s choice.