Bitcoin Soars Past $70k, Shattering All-Time High

Bitcoin's meteoric rise continues, reaching a new peak of $73,750 in March 2024, before a slight dip. As of March 27, it trades at $70,191 with sustained "extreme greed" sentiment. Bitcoin has grown exponentially since 2009, with analysts projecting further growth as it becomes more mainstream. However, volatility remains high, making it crucial to approach investments cautiously and avoid allocating significant funds, as recommended by experts.

Bitcoin Surges Past $70,000, Setting New All-Time High

On March 14, 2024, Bitcoin (BTC) reached an unprecedented milestone, surpassing its previous all-time high and setting a new record of $73,750. This remarkable achievement marked a significant milestone in the digital currency's meteoric rise.

However, the exponential growth was not without its fluctuations. Following its record-breaking ascent, Bitcoin experienced a slight dip, falling below the $62,000 mark. Despite this brief setback, market sentiment remained bullish, with the Fear and Greed Index indicating persistent "extreme greed." As of March 27, 2024, Bitcoin continues to trade at a robust $70,191, with a market capitalization of approximately $1.38 trillion.

Meteoric Rise and Potential for Continued Growth

Since its inception in 2009, Bitcoin has experienced an extraordinary surge in value. From October 2013 to early June 2021, its worth increased by an astounding 30,000%. While this growth is remarkable in itself, experts predict that Bitcoin's value could continue to soar as cryptocurrencies and the underlying blockchain technology gain wider acceptance and integration into daily life.

Cautionary Note: Buyer Beware

While Bitcoin's ascent has been stratospheric, it is essential to approach investing with caution. Bitcoin's history has been marked by extreme volatility, with sharp increases followed by precipitous declines. In 2017, for example, Bitcoin's value spiked to almost $20,000, only to plummet and remain below half that level until 2020.

Given its inherent volatility, experts strongly advise against allocating a significant portion of one's investment portfolio to Bitcoin. Instead, they recommend approaching it as a speculative investment with a modest allocation.

How to Buy Bitcoin: A Step-by-Step Guide

For those seeking to participate in Bitcoin's potential growth, the following steps outline the process of purchasing it:

1. Select a Crypto Exchange:

To purchase Bitcoin, investors must register with a reputable cryptocurrency exchange platform. This platform serves as a marketplace where buyers and sellers can exchange fiat currency (e.g., dollars) for cryptocurrencies like Bitcoin.

When choosing an exchange, consider factors such as user-friendliness, security measures, and trading fees.

Recommended Crypto Exchanges in India:

• CoinDCX: With 14 million registered users, CoinDCX is renowned for its transparency, security, and support for over 500 cryptocurrencies.
• CoinSwitch: Boasting over 20 million users, CoinSwitch offers a beginner-friendly platform with the option to invest as little as INR 100 in Bitcoin.
• WazirX: This platform is considered one of India's most reliable and rapidly growing crypto exchanges, with over 15 million users and access to over 300 cryptocurrencies.
• Mudrex: Thanks to its compliance with Indian regulatory directives, Mudrex has risen in prominence, offering access to over 350 cryptocurrencies with over 1 million users.

2. Choose a Payment Option:

After selecting an exchange, investors must fund their accounts to begin investing in Bitcoin. Depending on the exchange, various payment options are available, including bank transfers, net banking, Mobikwik, crypto wallets, and UPI.

It is important to note that different payment methods may incur varying transaction fees. For example, CoinDCX offers zero fees for UPI and bank transfers but charges 0.5% for net banking.

3. Place an Order:

Once an account is funded, investors can place their first order to purchase Bitcoin. This typically involves selecting Bitcoin's ticker symbol (BTC) and entering the amount they wish to invest.

Upon completion of the transaction, investors will own a portion of a Bitcoin, as acquiring a whole Bitcoin requires a significant upfront investment (e.g., $38,000 at current prices).

4. Select a Safe Storage Option:

Chosen crypto exchanges typically offer integrated Bitcoin wallets or provide partnerships with custodians for safe storage. However, some individuals prefer to keep their Bitcoin offline in their own private wallets, which may involve additional fees or potential security risks.

Current Market Value and Performance:

As of March 27, 2024, Bitcoin is valued at $70,084, with a 24-hour trading volume of 2.46%. It recently exceeded its previous all-time high of $73,750 set on March 14, 2024, reflecting an extraordinary increase of approximately 150.73% compared to the previous year.

Bitcoin's performance in March has been characterized by significant volatility, including surges and corrections below $62,000. Following its rally to $73,750, Bitcoin stabilized around this level before undergoing a slight pullback. Speculation remains that Bitcoin may establish a new record following the upcoming Bitcoin halving scheduled for April 2024.

Selling Bitcoin: A Simple Process

When investors decide to sell their Bitcoin, they can place a sell order through their exchange, similar to the process of buying. Most exchanges provide multiple order types, allowing investors to sell at a specific price or execute an immediate transaction.

Investors can choose to sell their entire Bitcoin holdings or only a portion of them. Upon completion of the sale, they can transfer the proceeds to their bank account, although some exchanges may impose a holding period before allowing such transfers.

It is important to note that selling Bitcoin may result in capital gains taxes, which must be reported and paid accordingly.

Should You Buy Bitcoin? A Prudent Approach

While Bitcoin's soaring price can be tempting, it is crucial to approach investing with caution. Bitcoin is a highly volatile asset, and experts recommend allocating only a small percentage of one's investment portfolio to it.

If considering investing in Bitcoin or other cryptocurrencies, it is advisable to consult with a financial planner who can help determine the suitability and risk tolerance of such investments within the context of an individual's overall investment strategy.