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Bitcoin exchange cryptocurrency is a well-known trading platform across the world. Since 2021, it continues to plunge downwards and has now fallen below $20,000. Most traders and investors now wonder if it makes a good investment at all. Many investors now feel that Bitcoin is a high-risk asset due to the surging inflation, rising interest rates, and poor market stock. Push comes to shove: this digital payment method remains volatile despite all the odds. Check out the below cryptocurrency overview to help you know whether Bitcoin is a sure bet.

Understanding What Bitcoin Is

Did you know there is a way you can make money transfers without an actual bank account? Bitcoin cryptocurrencies are digital currencies that don't need any physical type of exchange. They work like any other currency; the difference comes in terms of exchanges. Each Bitcoin is mined using an encrypted code of string of numbers and letters to 21 million Bitcoin in total. You will not get the coin in a physical version.

Many people buy Bitcoins since the payment method is safe and not regulated by a financial institution. Some people also buy and sell Bitcoin as a way of making money. The payment method uses blockchain technology to send data in cyberspace, just like other cryptocurrencies like Cardano and Ethereum. 

Why Bitcoin Has Dropped

Bitcoin became a household name as it serves well as a replacement for physical exchange. As a result, its demand and exposure as a digital currency increased among investors and crypto traders. Yet, this exchange cryptocurrency has become risky, especially in 2022 because of several factors. First is the rising inflation since June, which has reduced the assets for investors to buy, sell, and trade Bitcoin and other cryptocurrencies. 

Since the start of the Russia-Ukraine war, prices of trading have gone up. There are also some talks that Russia might ban the trade. Due to the unstable interest rates in the USA/EN, traders now sell off more risky assets. Not to mention the ban on cryptocurrency mining and trading in some countries like China. Some lingering threats of more regulations on cryptocurrency investment also dampen the trade.

This makes the recovery and future of Bitcoin investment entirely dependent on other cryptocurrencies. However, if you believe in the future of digital currency, then you have to fasten your seat belt and hold tight onto the Bitcoin investment.  

Is Bitcoin a Smart Investment?

The value of Bitcoin is based on pure speculation. If you want to buy Bitcoin on Changelly, you need to understand that there's no guarantee that you will earn your money back. You have to ask yourself questions like why you are now interested in the asset, how much risk you will incur, and if where you will store your Bitcoin is secure enough. 

Investing in Bitcoin assets is very volatile. However, it's the same with all the other digital currencies. Despite the highs and lows, it's still a risk worth taking. When you are thinking of investing in the future, keep this in mind along with how the crypto market works, and how to buy cryptocurrency. Look at it this way: in 2021 Bitcoin hit $68,000, surpassing other traditional assets. 

Despite its fluctuation, it still stands as the most popular cryptocurrency market. Despite its volatility, experts predict that by the end of 2022 Bitcoin could rise to $100,000. Just keep in mind that the reasons why you could lose your investment with Bitcoin could be your memory loss, cyber-attack, or selling based on your sentiments.

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How to Invest in Bitcoin

You can buy a cryptocurrency and invest in Bitcoin in 2022 in different ways from trading, mining, lending, or staking. However, you can simply decide to trade by buying and selling Bitcoin. Before you start trading, first check the highs and lows. One option is to lend Bitcoin to businesses or invest as a miner. This way, you will verify new Bitcoin transactions and monetize new Bitcoin tokens. 

You can also decide to buy Bitcoin and wait until the price goes up before you sell it off. The third choice is to invest in a Bitcoin exchange-traded fund ETF, blockchain network, or invest in traditional assets like bonds and shares.

All you have to do is create a Bitcoin wallet for storing the private keys to your currency. After, you will buy a secure Bitcoin and start trading. Buying and selling Bitcoin requires fees such as trading fees, escrow fees, transaction fees, withdrawal fees, and deposit fees. However, these only cost a small percentage of the transaction cost.

The Smartest Way to Invest in Bitcoin

If you want to invest in Bitcoin in 2022, you have to ensure you do it safely to avoid scammers. By storing your Bitcoin in a digital wallet with a secure password, you ensure your information is safe. You also need to invest only what you can afford to lose and put some of your money on other less risky investments.