3 Signs You’re Ready to Invest in Bitcoin – Motley Fool

3 Signs You’re Ready to Invest in Bitcoin – Motley Fool

To say that Bitcoin (CRYPTO:BTC) has experienced an incredible run-up over the last few weeks would be an understatement.

The cryptocurrency is nearing $50,000 at the time of this writing, and despite some volatility, it’s been reaching record highs so far this year. In addition, Tesla made headlines when CEO Elon Musk announced that the company would be buying $1.5 billion worth of Bitcoin, fueling the cryptocurrency’s skyrocketing price.

Bitcoin has proved to be divisive, with many investors advocating for it and many staying as far away from it as possible. If you’ve been considering investing in Bitcoin, here are three signs you’re ready to take the plunge.

Bitcoin symbol on top of piles of gold coins

Image source: Getty Images.

1. You’re willing to take on higher levels of risk

Despite its price surge and popularity among many investors, Bitcoin is still an incredibly volatile investment. It’s experienced wild price fluctuations over the years, at times losing roughly 80% of its value.

Even over the last two months, it has seen two steep falls. If you’re going to invest now, be sure you can tolerate these intense price swings.

Bitcoin Price Chart

Bitcoin price