There is a simple way to make money in Bitcoin. It is the easiest method in the world and requires little skill.
To have success with Bitcoin, buy it and HODL.
This according to the analysis of this article.
What makes this so simple is the over riding idea that people who fail to make money in Bitcoin are either impatient or do not believe in Bitcoin. Obviously, the later could be excluded because if you do not believe in it, then your money should not be in it.
As for the patience, I do agree with the philosophy although digress from a bit of the analysis. In fact, I think the overall concept applies to much of the crypto market.
Below is a chart of the low prices for each year. One of Bitcoin's unique characteristics is the yearly low keeps rising. As evidence, even this year, the low was greater than that of 2018 even if only by a small amount.
While all this is true, there is one issue. The entire presumption is that one bought Bitcoin below the $3350 level. If someone, for example, had Bitcoin at $15,000, this chart is of little solace. In fact, there is a massive loss presently incurred.
Of course, the optimist will say that it is only a matter of time before the $15,000 is eclipsed and I would agree. I do not believe the all time high will stand for BTC. There will come a point when it is exceeded.
However, buying are the right time (or at least dollar cost averaging) is vital. Market timing is very difficult hence, it is best to have a strategy that enables one to benefit from the price swings.
That said, when it comes to cryptocurrency, impatience is fatal. I do not look at this as financial but, rather, technological. With that as the case, technology takes time to develop. At the same time, there is a tendency for the technological capabilities to exceed humans willingness to change.
Thus, patience is required.
Even after the development is in place, it takes people a while to play catch up. In a situation like this, we are looking at a number of years. Ultimately, I believe they will be here it just will take a while.
The risk associated with cryptocurrency naturally exists. However, there are risks with any investment. Even putting money in a bank can end up with a loss (just look at the German banks paying negative interest rates). Thus, there are no guarantees.
What this analysis does reveal is that for Bitcoin, hodling in 90% of the cases will lead to success. The Alt-Coin front is a bit different because there are a lot more variables in their projects that could derail it. However, the principle holds true in my opinion, at least for the better projects.
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