Bitcoin rose on the global financial scene immediately after the global economic recession that was seen in 2008. As people started to look for an alternative to the traditional fiat currencies, cryptos stepped in. Although bitcoin trading could not get much attention in its first few years, the past couple of years have proved to be quite valuable for the asset. Bitcoin trading has gained much attention since the bull run of the asset that was seen at the end of 2017. But since then, the asset has taken the downward road. The entire crypto market is in a bear run for over a year now. So should you be considering to enter the market now for bitcoin trading?
As opposed to the $20,000 mark that bitcoin was almost touching back in December of 2017, bitcoin is down in the dust floating around in the $3,000s. People who did bitcoin trading when it was at the top and bought bitcoin back then are probably not that happy right now. But in this bear market, there is a narrative present that one should buy the dip. Should one enter the bitcoin trading arena in this bear market?
The bitcoin world is a very risky one. The only certain thing associated with it is its uncertainty. Nobody knows for sure what will happen next. Even if the asset is down right now in the $3,000 range, it might head down even further. Nobody is sure if its the bottom that it is going to see.
Volatility associated with bitcoin is also one of the biggest issues of this market. The magnitude by which its price might jump or fall is unknown. Many investors have lost a large amount of money owing to its volatility. Volatility is also one of the reasons why people hold back from using bitcoin as a source of making payments. Besides, the price is highly prone to manipulation. Whales present in the market shift the momentum in their favors in order to gain maximum benefits. Although it might be too luring to buy the dip right now, bitcoin trading might not be the best option for one if one is looking for a completely risk-free environment.