Is It a Good Idea for Retail Investors to Buy BTC in 2021?

Bitcoin's rally, which started after the halving in May 2020, was one of the main reasons why the cryptocurrency reached a new status as one of the most attractive assets in the financial market. By 2021 the price of Bitcoin increased to $40,000, and in April 2021, it hit $63,000.

So, there are actually a lot of institutional investors that jumped on the crypto bandwagon in 2020 in 2021. Actually, Tesla is one of the largest holders of BTC as Elon Musk invested $1.5 billion in Bitcoin. However, there are a lot of other companies that support Bitcoin by accepting BTC payments, such as PayPal, Twitch, Shopify, and many other big brands. That being said, a lot of retail investors are wondering if it's a good idea to invest in BTC in 2021. In this article, we cover the main aspects that make Bitcoin an appealing investment for retail investors.

Decentralized Cryptocurrency 

One of the most appealing aspects of Bitcoin is that it is a distributed virtual currency that isn't under the control of any institution. Actually, the blockchain network has offered a lot of advantages to Bitcoin. Essentially, when you're investing in a decentralized cryptocurrency, the supply and demand of the market dictate the price, and because this is a peer-to-peer-based technology, the transaction fees are low.

In addition, the design of the technology makes everything transparent except for the personal data about its users. So, this is another advantage because it promotes transparency it minimizes the chances of errors, and it enhances the data security of the network. Overall, the benefits offered by blockchain technology are one of the reasons why Bitcoin has had this fantastic success.

Automated Trading Sites

Another advantage for retail investors is that they can invest in BTC on cutting-edge automated trading systems such as Bitcoin Bank review. This automated trading system is beginner-friendly because it is powered by Artificial Intelligence algorithms, and it's able to complete the trading process without constant input by the users. Actually, you can make a daily profit of up to $1250 daily, whereas you only need to spend about 20 minutes on the site.

So, it's a very good choice for individual investors because you are not required to have extensive knowledge about cryptocurrencies, Bitcoin, and online trading in order to start trading here. Also, there is an in-depth guide to help you get a solid grasp of crypto trading on the site.

Safe-Haven Asset 

As we said, Bitcoin was created as a decentralized cryptocurrency, but to keep inflation under control, the total number of Bitcoin tokens from the start was capped at 21 million. In other words, there is a limitation to the number of Bitcoins that can ever be created. So, Bitcoin is a very rare and highly valuable cryptocurrency because the demand exceeds the supply on the crypto market.

This also makes Bitcoin a good hedge against inflation, and it is even considered a safe-haven asset because, much like other safe-haven assets, the supply is limited, and the price isn't influenced by economic factors such as a recession, financial crises, inflation, political instability, and other events.

The Value of Bitcoin 

One of the most appealing attributes of Bitcoin is that its value is increasing, and it will probably continue to do so because the market is small and Bitcoin represents a scarce safe-haven asset. Plus, the continuous demand that is prompted by institutional investors only fuels its growth.

Actually, during 2020 the price of BTC increased by over 170%. It started off at around $10,000 after the halving in May, and it ended with a price of over $20,000 in December 2020. As we know, the price reached $63,000 in April 2021, and it's predicted that it will break $250,000 in 2021.