On the eve of Trump's election, I had a gut feeling that buying some Bitcoin was a good idea. It turns out that my investment has returned me around 25% in a single week. If I had invested 10000 dollars, I would have earned 2500 dollars in a week from nothing. But due to my caution and being a first-time investor, I only spent 100 for a return of 125. This left me salivating, to put it crudely, but I'm smart enough to realise that it's probably a trap to put all my money into it now.
I had never had contact with Bitcoin prior to this. I have watched some videos by now and I understand the basics. Looking back at its history, it seems that Bitcoin never goes down permanently and it always comes back with a substantial net gain after each drop, so this makes me very tempted to put more money into it next time. For example, on the eve of Trump taking power.
But then my rational side kicks in. It was very obvious that Trump would cause Bitcoin to increase, so why didn't everyone spend all their money on it right then and there? I know that money never comes easily and freely. If the opportunity is too obvious that everyone can take it, it must lose value, right?
To formulate a more coherent question, let me ask you the following:
What are the risks of investing in Bitcoin before major world events that I know will increase its value? Why don't more people do the same? What is the trap that I'm failing to see? And why is it a dumb idea to spend all my money on Bitcoin if it always increases in value by a lot every year? How to correctly predict when is the right time to invest?
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In summary, I get the strong feeling that Bitcoin is one of those things that are too good to be true. I mean, it can't be so easy to make 25% profit with an investment in just a week. Right?? Sorry I'm noob, I'm just scared.
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