What to do if you’ve got a Bitcoin investment

What to do if you’ve got a Bitcoin investment

Web Desk
June 14, 2022

What to do if you’ve got a Bitcoin investment

Bitcoin and other cryptocurrencies are currently in a freefall.
Bitcoin has dropped over 70% since hitting a record high of $69,000 in November.
It has now dropped to $22,522, the lowest level since December 2020.

If you invested in Bitcoin in the previous year or two, you might be thinking you made a huge mistake.

Bitcoin and other cryptocurrencies are currently in a freefall, mirroring what is happening on both sides of the Atlantic in stock markets.

Bitcoin has dropped over 70% since hitting a record high of $69,000 in November.

It has now dropped to $22,522, the lowest level since December 2020.

So, what are your options? Should you sell what you have and try to limit the damage, or should you hang on and hope for the best?

That relies on a variety of things, including the amount you’ve invested, the length of your investment’s time horizon, and your own risk tolerance.

In general, you should only invest risk capital, or money that you can afford to lose. If you chose that strategy with Bitcoin and the rise or decrease of the price won’t cause you any financial hardship, it’s preferable to keep your investment.

‘Take the long view and try to disregard the short-term volatility,’ recently said Sam Volkering, a cryptocurrency expert at Exponential Investor.

The rationale behind this is that, while Bitcoin’s value is currently declining, there’s no reason to believe it won’t begin to increase again in the future.

Despite the fact that Bitcoin is decentralized and unlike real money, it is nonetheless used by individuals and businesses all around the world, and so is influenced by perceptions of other financial instruments.

At the moment, technology stocks are also down sharply. There’s every reason to believe they’ll recover at some point in the future, whether it’s one year, five years, or ten years. Cryptocurrencies are in the same boat.