Can 1 Bitcoin make you a millionaire?

Bitcoin, the electronic cash, is showing a gradual rise in its value. With the current rate, many analysts predict the Bitcoin price to reach $100,000 soon. Even though many businesses have started accepting their transactions to be made in Bitcoins, ascribing Bitcoin value to the goods used every day is still a challenge owing to its volatility. 

Therefore, Bitcoins have been used to trade digital assets like Reddit Gold over the blockchain. Buying, selling, or exchanging cryptocurrency could be the only way to make money over the crypto platform. A few people also get involved in mining activities to earn cryptocurrency. However, before investing in Bitcoin, you must be aware of its returns. As claimed, is it likely to make a million over time? Let us find out.

Making of a millionaire from 1 bitcoin: What is the likelihood?

The current Bitcoin value is over $60,000; less likely that it would reach $1,000,000 anytime soon. You could, nevertheless, still make the most out of even one Bitcoin in the following ways.

Trading over the blockchain

Involving yourself in crypto trading can increase the value of one Bitcoin manifold. However, you would need to be extremely cautious, and study the market trends quite exhaustively.

Holding for a greener market event

This is the favorite strategy followed by most investors, but for the volatility of the markets. For a regular trader, holding the Bitcoin just longer could reap fruitful benefits.

Speculative benefits of owning a bitcoin

According to a projection predicted by analysts, Bitcoin investing is capable of potential returns of about 200%. Further, it is believed that cryptocurrency is going to replace the conventional methods of investment in a major way, becoming the currency of the future, or a widely traded asset. A bitcoin may yield much higher profits if you are able to sell it in the market during its upswing. Thus, the success of your trade is primarily contingent on your trading skill. Timing the market is one of the top strategies that most investors, who pay close attention, employ. This strategy has known to produce better returns than even government bonds or corporate equities.

Evaluating parameters while investing in Bitcoin

Not every business accepts Bitcoin transactions. Though the market price of Bitcoin has risen over the past decades, with many fluctuations, investments in Bitcoin have grown riskier now. If you would have purchased Bitcoin about a decade back, it would be much safer to put your funds there. Therefore, you should analyze every other parameter with utmost attention while making an investment.

Risk

The introduction of altcoins (or alternative cryptocurrencies) in the blockchain has raised the competition levels. Predicting the market trend for one cryptocurrency is, therefore, a challenge for market analysts.

Widening the spectrum of Bitcoin-accepting industries

Since the crypto markets are decentralized and unregulated over major portions of the world, only a few companies are willing to take the risks of volatility and unpredictability and accept transactions in Bitcoin. If the market, however, shows its trust in crypto and the governments extend their support to Bitcoin mining and trading, Bitcoin price is likely to rise significantly.

Not an overnight scheme

The desired return on investments from Bitcoin is expected to be received over a longer period of time. So, only if you are looking for a short-term investment, it might cost you huge losses.

Bitcoin vs Stocks and mutual funds

Crypto trading is in no way similar to stocks. When you invest your stakes in a company, you may be able to predict its growth by looking at its records and documents. This is not the case with Bitcoins. They could disappear as suddenly as they arrived over the blockchain. It is an extremely volatile investment. While some experts are of the opinion that Bitcoin is already at its historic highs and that Bitcoin is in a bubble that could burst anytime now, other analysts believe that by the end of this year, BTC might be able to reach the $100,000 mark. Download the Bitcoin Equaliser app now and understand the latest market trends for a secured investment.

Conclusion

It is not impossible that a Bitcoin can make you a millionaire, or even better! Nevertheless, the sole responsibility lies with you as an investor to evaluate the risks, time your investment, and trade wisely. It is always, however, suggested to diversify your portfolio, to protect yourself from the volatility of the crypto markets.