Bitcoin’s price can be unpredictable
Bitcoin is not FDIC-insured or safeguarded by any government agency; purchasing it involves risk of loss. As with any asset, the value of Bitcoin can go up or down, and there can be a risk that you may lose money buying, selling, holding, or investing. Fold is not registered with the U.S. Securities and Exchange Commission and does not offer securities services in the United States or to U.S. persons.
There are ways to mitigate risk
Great fortunes have been won and great fortunes have been lost on the volatility of the Bitcoin exchange price.
Some traders try to advance their wealth by predicting the exchange rate of Bitcoin and trying to time their buying and selling. While some have seen success with this method of trading, it is also the hardest way to realize gains from Bitcoin.
What is dollar cost averaging (DCA)?
Most veteran Bitcoiners don’t try to time the markets, and instead employ the Dollar Cost Averaging method. Dollar Cost Averaging (or DCA) is the strategy of buying a set amount of Bitcoin at consistent intervals (usually daily, weekly, or monthly) regardless of price.