Bitcoin above $ 65,000, but it’s the “least the least ideal to buy”

[ad_1]

Bitcoin, the largest cryptocurrency by market value, hit an all-time high on Wednesday.

It topped $ 66,000 on Wednesday morning, breaking its previous high of $ 64,899 set in mid-April, after the first U.S. bitcoin exchange-traded fund debuted on Tuesday.

It is an exciting time for both the cryptocurrency and the market as a whole, and investors might be wondering whether or not to buy.

But at least one financial expert says to wait.

“Usually, when an investment hits an all-time high, it’s the least ideal time to buy,” Anjali Jariwala, certified financial planner, chartered accountant and founder of Fit Advisors, told CNBC Make It. “I think it makes sense to wait and see what happens in relation to buying at an all time high,” she said.

In this case, this is mainly due to bitcoin’s history of extreme volatility, Jariwala says. Like all cryptocurrencies, it is subject to strong price fluctuations.

However, not all financial experts agree.

“It’s always a good time to buy,” Ivory Johnson, Chartered Financial Planner, Chartered Financial Consultant and Founder of Delancey Wealth Management, told CNBC Make It.

This is because the interest in the new bitcoin ETF based on futures contracts “shows that bitcoin is increasingly adopted,” he says. He predicts that as more people embrace bitcoin, the price will continue to rise exponentially.

“As institutional products make it easier to buy bitcoin and investors believe it is properly regulated, demand is more likely to increase,” Johnson said.

Johnson also says that “it’s a good environment for digital assets” right now because bitcoin supporters see it as a store of value and a hedge against growing concerns about inflation. He argues that as the price increases, bitcoin becomes more valuable, which now makes it a good time to buy despite the high price.

However, remember that investing in cryptocurrency is always risky due to its volatile and speculative nature, Jariwala says. You may lose your entire investment.

But if you’re still interested in investing, Jariwala suggests considering a buy and hold strategy. Rather than attempting to trade in the short term, this strategy favors holding a long term asset. And again, only invest an amount that you can afford to lose, she says. This way, the huge price swings surrounding bitcoin will be easier to digest.

“The only thing we can be sure about when it comes to bitcoin and crypto in general is that there will be volatility,” Jariwala said.

Sign up now: get more information about your money and career with our weekly newsletter

Don’t Miss: Mark Cuban Says He Won’t Invest In Potential Bitcoin Futures ETF: “I Can Buy Direct”

[ad_2]