The bitcoin boom was unprecedented, and for a moment, it took the financial world by storm. Some investors responded promptly and those who invested shrewdly made massive amounts of money. It was almost too good to be true. For some, cryptocurrencies presented the most lucrative investment opportunity they had ever come across, and after making enormous profits, they thought that they could get an even bigger piece of the pie.
News about cryptocurrency spread like bushfire. At some point, ordinary people jumped onto the bandwagon, investing thousands of dollars. Some withdrew their life savings while others took loans to invest in crypto. At the time, it was a sensible decision.
Unfortunately, it didn’t take long before things started going south. Even so, some people recovered their initial investment. This is because digital currencies are quite volatile and the highs and lows come fast and without a warning. An investor could make tremendous amounts of money in just a few days. However, the opposite can also happen and you can lose all your life savings a few days.
The virtual currency obsession
During the Bitcoin boom, many hardworking folks across the globe saw it as an opportunity for their financial breakthrough. Due to the rising popularity of cryptocurrency such as Bitcoin, scammers emerged. Some investors did not take their time to research, invest, and trade their crypto on genuine sites such as NakitCoins. Instead, they got duped by scammers who posed as legit brokerage firms and lost thousands of dollars.
Lessons learnt by investors
It is normal to make a few bad mistakes when investing, and those who bought various investments during the Bitcoin boom made a fair share of mistakes. As a result of poor timing, some investors did not capitalize on incredible growth opportunities. Without further ado, here are the lessons that investors learned from the Bitcoin boom:
Prices of Bitcoin may rise higher than expected
In 2013, the price of Bitcoin shot from $0.01 to a whopping $100. No one could have fathomed it. It was unbelievable, and it all happened in just a few years. The rise was a result of bitcoin mining difficulties and an increase in demand. From that, investors could appreciate that investing patiently in Bitcoin is lucrative. This is because the price might rise higher than you expect in a short period.
To benefit from massive gains, you have to endure losses
Investors learned that they had to endure through losses so that they could enjoy massive gains. Those who made the most out of the Bitcoin boom had to suffer through heartbreaking losses, but their resilience turned their fortunes around in due time. After hitting $1000 in 2013, bitcoin went on to lose $800 in 2015. Later on, the Bitcoin rose to a staggering $3000.
Despite the losses, investors gained immense experience. For some, these were invaluable lessons, and over the years, they have used the experience accrued to make smart investment choices. That said, they have gone on to reap massive profits from digital currencies. For others, the losses were humbling and they would never invest in Bitcoin.
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Sujit is a Crypto enthusiast and a blogger by passion. He Works for a Crypto news Company Cryptoknowmics. Cryptoknowmics is one of the best companies in this industry because they have the passion to provide users the relevant crypto, bitcoin, and altcoin news today. You can follow him on LinkedIn and Twitter too.