In recent weeks, we have witnessed a significant increase in the price of Bitcoin (BTC), the leading cryptocurrency in this entire ecosystem. This surge has sparked renewed interest in cryptocurrency investments and has led many investors to consider the possibility of buying Bitcoin. However, it is important to consider certain factors before making any investment in this volatile market.

“The rise of BTC demonstrates the global need for a reliable system of value representation, similar to the rise in gold and other assets in international markets versus currencies issued by Central Banks. For El Salvador, which has bet like no other on Bitcoin, this rise is an opportunity to attract foreign investment, invigorate the real estate market, and likely investment in decentralized technology.” –Héctor Torres, managing partner

Explanation of Price Increase:

The price of Bitcoin has experienced a notable increase due to a combination of factors, including the growing demand from institutional investors, wider adoption of cryptocurrencies in different economic sectors, and the perception of Bitcoin as a safe haven against inflation and the volatility of fiat currencies.

The cryptocurrency has reached a new milestone by surpassing $72,000, thus marking its second historical high in a week. This increase has been driven by the entry of large investment funds into the market, especially after the United States authorized exchange-traded funds (ETFs) linked to the cryptocurrency.

“Another determining factor is due to the upcoming halving. Taking historical trends as a reference, BTC has consistently shown significant price fluctuations before and after a halving event. Although this volatility can result in investment opportunities,” explains our lawyer.

Risks and Volatility:

It is essential to highlight that volatility is a distinctive feature of Bitcoin. The prices of this cryptocurrency can experience significant fluctuations within hours or days, which can translate into substantial gains or considerable losses for investors, especially those focusing on short-term strategies.

“However, those who have opted for a long-term view with Bitcoin have frequently experienced gains,” comments our expert. “It is crucial that anyone considering investing in Bitcoin is prepared to face this volatility and understands the associated risks.”

Tips for Buying Safely:

  • Use reputable and regulated cryptocurrency exchange platforms that offer robust security measures.
  • Thoroughly research any platform before depositing funds or making transactions.
  • Enable two-factor authentication (2FA) on all your exchange accounts to add an additional layer of security.
  • Consider storing bitcoins in a secure offline wallet, such as a hardware wallet, to protect them against possible hacks or online theft.

Warning about Scams:

Unfortunately, the cryptocurrency market is also plagued by scams and frauds. Stay alert to possible Ponzi schemes, phishing attempts, and fraudulent projects promising guaranteed returns or exorbitant profits in a short time.

-Writtten by Torres Legal Team