When is the Best Time to Invest in Bitcoin
Cryptocurrencies have been around since the 2000s and are starting to become a staple form of investment and payment. A recent report found that 106 million people around the world are using crypto because it is highly accessible. Another survey found that 34% of crypto traders buy and sell monthly while 33% do so weekly.
Because cryptos are new and unregulated, it may be daunting to add them into your investment portfolio, but this shouldn’t be the case. If you want to try your hand at becoming a trader, but are not sure when the right time to invest is, then here are some tips that you can use to kick off your crypto journey:
Use the Dollar-Cost Averaging Strategy
This is a strategy used by many people to only invest in small increments rather than putting all their money in at once. You can take advantage of prices dropping in anticipation that they will rise again, leaving you with a profit. This means that instead of finding a good opening, you jump right into the market without much risk.
You can do this by having a set amount of money you want to invest into crypto and buy cryptocurrencies during set periods. Timing is important when it comes to knowing when to purchase cryptos, but with this method, timing becomes a smaller factor. Rather than waiting for the right opportunity, you can invest whenever. This is a good strategy to try for newbies who want to be able to invest more for less.
Invest During the Initial Coin Offerings Stage
Initial coin offerings (ISOs), are cryptocurrencies you can buy before a company launches them onto trading platforms. This makes it possible for you to get them for cheaper prices as compared to purchasing them for retail value. For those who want to invest in crypto but aren’t willing to spend on currencies that are already priced high, then this is a great option.
It takes a bit of market research in finding what companies are creating new coins, but after that, it becomes an easier process of joining the exchange they trade on and buying in. The downside of doing this is that a company’s success is unpredictable. For instance, the Algo was expected to be a huge success upon release, and many people invested in it. But within its first three months of being on the market, its value fell by 94%. It is a risky investment but one that can pay off big in the long run.
Purchase When Money Flow Index Hits 100
A money flow index (MFI) is something many traders use to analyze the market value of a cryptocurrency. It can typically tell you whether a currency is overbought or oversold and an MFI of 100 typically means the former. If you are not sure when to jump into trading, it is recommended to do so when the market reaches this value because it means that there is a higher possibility of triggering a profit. This is due to more people seeking to invest in the currency.
If you play your cards right, it is possible to sell your crypto for a higher price than what you originally purchased it for. Remember that it is still important to do your research on the movement of the market to know whether the market will have a bearish or bullish movement, so you make the most of your investment.
Cryptocurrencies are proving to be strong investments in an increasingly digital world. Before you decide to try your hand at trading, be sure to do adequate research on the market’s movement, and try to use these tips to get the most out of your purchases.