Bitcoin soars above $70,000: Should new investors jump in?

Bitcoin soars above $70,000 Should new investors jump in Bitcoin soars above $70,000 Should new investors jump in

Bitcoin has achieved its ATH by surpassing the milestone of $70,000. To be more specific, BTC is listed at $71,926.44, with a surge of 4.89% in the last 24 hours at the time of articulating this piece. The rise comes almost two months after the US Securities and Exchange Commission approved 11 ETF applications. The price did retrace to a value of less than $40,000, but it is well above that mark, with sights now at $100k.

New investors are jumping on the boat to experience the wave. Some of them are experienced, wanting to sail for a longer time, while others are novice traders who don’t want to be left behind with a FOMO sentiment. Nevertheless, the influx of new investors is heavy, and chances are that new investors may continue to flood the market. This brings up a question: is it the right time for new investors to get started with Bitcoin (BTC)?

Is it too late to invest in Bitcoin?

There are a couple of ways to look at this question; however, the focus will be on two major factors. First, it is too late to invest in Bitcoin if the new investor needs more funds. The vibe of FOMO heavily drives such investors, and they don’t want to be left behind. The chance of losing funds is sustained throughout the trading year. Such traders just end up losing the majority of their funds.

Second, traders who have sufficient funds are looking to accumulate profits. They can be a bit late, considering some traders expanded their BTC portfolios when the token was rallying at $20,000. Bitcoin was poised to touch a higher milestone at that moment, and those traders had already gathered profits.

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While BTC could still mark an upward trajectory after halving, the profit calculation will be slightly hampered by a narrow margin. As for the time to invest in Bitcoin, the principle is based on how much risk a trader can take.

Navigating the bull market

Bitcoin, or any other crypto, for that matter, is subject to volatility. The price can climb the ladder and slip down in just a minute. One way to navigate the bull market is by responsibly limiting the excitement and diverting funds to the cryptosphere. Risk management is a single challenge that traders are likely to face. An understanding of the technicalities of the crypto and blockchain spheres could follow it.

Diversify your portfolio and continue to seek out alternative strategies. Having received approval from the US agency, the Spot Bitcoin ETF is undoubtedly a viable option. Traders are able to extract profits from the token without having to interact with it directly.

Spreading the risk: Considering different exchanges

Exchanges entice traders, especially new traders, to register on their platform. Promotions are often attractive to the extent that traders stop looking at other exchange platforms and rely heavily on a single platform. This constitutes a recipe for disaster. For starters, the platform may not feature approval from the relevant authority. Funds transferred to the platform get stuck, and withdrawals are disabled.

It is recommended to keep exploring reliable crypto exchange platforms and taking advantage of their benefits at the same time. Notably, one platform may not have an interesting welcome bonus, but it may have a reasonable trading fee and higher liquidity in the market. Not every platform has a user-friendly dashboard. Complexities in that segment can cause wrong decisions. Thereby, losses are registered in the books.

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Other factors include security for confidential data, wallet integration convenience, and the availability of tokens.

Conclusion

Bitcoin’s price has surged significantly in the last 30 days, by 49.48%. The value is teased to soar more after the Bitcoin Halving event. Investors can get on board, subject to their risk appetite. New traders may want to explore the market and exchange platforms before investing their funds. Bitcoin does have the potential to yield better returns, but the same aspect is subject to the volatility of the crypto market.