Should we invest in Bitcoin ?
When is the best time to buy cryptocurrency ?
Every body’s first question is : Should we invest in Bitcoin of the year 2019 ?
Or another similar question: When is the best time to buy cryptocurrency ?
Now, if the answer is yes, you need to know and hear about it.
Achieving a better understanding of Bitcoin can help you to choose better investment strategies. 2017 was a good year for bitcoin and cryptocurrency market.
The crypto market shed the majority of its 2017 gains this year as market corrections kicked in. These losses left many investors with difficult decisions to make, such as when to sell Bitcoins, and should I buy Bitcoin now? The important thing to remember is that there isn’t one particular style of investing that fits everybody.
Nowadays, everyone knows that there are some factors and patterns that are engaged with the formation of accurate future of Bitcoin and its financial reliability .
Let us leave the other one thousand people alone, but they will convinced for sure and will dare to tell the truth for the general happiness, and they will find out the truth 1 , 3 , 5 , or 10 years after, when Bitcoin becomes more famous and widespread.
As Bitcoin is starting its stable media coverage and acceptance, everyone remember Bitcoin on the January 2017 ( the New Year ) when it reached 1000 $ for the first time. Just to see its increasing to 1300 $ when the EFT suggestion of the winklevess twins was suspended, – which defeated in the suggestion and the price considerably decreased to 950 $ – why are we telling you these things ?
Because this is the lowest price of Bitcoin ever .
It rapidly outran from $1000, and had no signs of decreasing up to the middle of the month. Then ,we saw that on August 2017, the price of Bitcoin increased more than $3000, and didn’t decrease since then.
When we buy cryptocurrency, we can continue our purchases, but the point is the fact that Bitcoin is in cryptocurrency forehand, and as a result, people may ask these questions:
isn’t it too late to invest in Bitcoin ?
When is the appropriate time to enter into the market ?
Since the prices were from several hundred to several thousand, and now is at the 8000 $ point .
So, there are two expected possibilities in future :
1 – purchasing an ICO Token accidentally hoping to increase to millions
2 – purchasing 10 or 20 coins
But what is fixed in our humble eyes is the key word #Buymorebitcoin that should be used most of the time .
We are not going to talk about BTC and BCH , but Bitcoin is the first decentralized cryptocurrency which has a general ledger and is recognized as a distributed ledger block chain technology.
While you may pay less attention to the technology aspects, it is important to pay attention to that by investing in Bitcoin.
You are investing in Block chain to keep the way of everything for everyone , and therefore , you don’t have multiple expenses or network expenses .
why investing in bitcoin may be an intelligent movement?
Before we start , let’s get rid of some important things . Bitcoin is not a company or stock . If you have not still understood exactly what bitcoin is , there are many motivating online videos and articles available in this site which are rewarded.
When you finally want to invest in Bitcoin , you will not necessarily buy a currency like US Dollars or Japanese Yen , although there are such guidelines to invest in bitcoin . So , what does investing in bitcoin mean ?
There are various answers to this question which refers to your investment guidelines . Do you want to save Bitcoin for a long period or do you want to put money in Bitcoin related companies like miners ? Or are you looking for daily trading or earning money out of the market’s fluctuations ?
There is no shortage regarding bitcoin investment ideas . But most of the strategies were based on the purchase and hoping to increase the price . This action is recognized as a property . If you are following this action , then you need to decide yourself when is the best time to enter into the market and be ready to quite its fluctuations .
Is it a good idea to use bitcoin in 2019 or wait ?
The honest answer is that “ why don’t we do both ? ”
Why don’t we buy bitcoin today and wait to quite?
The hold on for dear life mentality of HODLING is what seems to have the sticky power of sustaining the entire ecosystem that is bitcoin, the first ever blockchain cryptocurrency application to be truly decentralized, peer to peer and trustless.
Here are some additional points to start buying Bitcoin and holding it:
You should never invest to the amount more than you intend to lose ( less risk )
The reason is that bitcoin is a risky investment and its price may become lower at any moment. Also, after buying your bitcoin, always make sure that you can move it to one of your personal wallets, and never leave them sitting on the exchange.
Since keeping bitcoin in the exchange is dangerous, (unless frequently trading) many investors are recommended to buy a hardware wallet to save the bitcoins and keep them offline.
A hardware wallet not only transfers your bitcoins offline to a space where hackers and other criminals cannot have access to it easily, but also gives you the ability to protect your personal keys in a non-electronic way.
People have been calling for the death of bitcoin some 300+ times. They say that it is a bubble or tulip, and may collapse any moment.
The real question of considering bitcoin investment in real life is that “should it be long term or short term ? ” but should be a big indicator as to what you are trying to get out of and eventually accomplish with a deposit into the leading digital cryptocurrency bitcoin.
Entering to bitcoin market
A strategy to follow is to buy Bitcoins using the dollar cost averaging model. This means that you are not having a big order, but you are purchasing a fixed amount per month, week, or day. This means that your investment price average is distributed at your specified time, and overall cost should be lower.
You can also take a look at dollar cost averaging combination with bitcoin trading, which is deliberately different from purchase and maintenance of the life.
When you are trading bitcoin, you try to buy bitcoin with a lower price, and sell it with a higher price. The ability to do this needs knowledge, luck, practice. doing this in the real life is harder than what you may think.
Bitcoin trading is taken over by whales or big organizational investors and other cryptocurrency. Whales wait for newbies to enter the market and perform pumps n dumps. This leads to that the newcomers lose their capital which is caused by the coordinate efforts of these big players .
What about Bitcoin Mining
If you are eager to invest in Bitcoin, here are a few tips that you can put into practice.
Some people like to invest their money into mining bitcoin, yet this is becoming increasingly cost prohibitive with expensive fees and a lower return on investment overall.
This means that you need to invest a significant amount in Bitcoin Mining equipment to see a modest returns for your efforts. Also, mining is useful when you want to perform it in a scale which is large enough, rather than in a region where electricity is low cost.
Naturally , bitcoin mining is expensive ; it means that usually , it is better to spend Bitcoin with the amount you wanted to purchase bitcoin equipment mining .
Also, some of you may have heard of some times that will mine bitcoins on your behalf. This system is called clod mining. A cloud mining platform can fall into either one or two categories:
they can either make off with your initial investment, or they are legitimate establishments but with disappointing returns. Again, in most cases, you’ll probably be better off simply buying bitcoins with the same amount of money you’d use on a bitcoin mining site.
Investing in Bitcoin Companies
There are sites which they promise to increase your current bitcoin stock instead of cold mining system. These sites are high yield investment programs (HYIP).
These sites exist for a specific time, and what is common in all of them is: the promise quick, guaranteed returns, which to any thinking person, will know that this is impossible.
In fact, most HYIPs are not more than a weak Ponzi scheme, but they are still able to make a fair amount of money without warning and before they stop activity .
HYIPs will promise guaranteed return along with a bonus incentive for introducing new users to the platform. This incentive will only last for a few months before the platform will stop paying out, as the money was really coming from new users to the platform, and not through their automated investment or trading software – or anything they propose to their users as a way that they can guarantee such high returns.
In short, any site that promises you guaranteed profits is trying to scam you, as no one can promise guaranteed profits of any site. So what’s the best way of avoiding these scams? Don’t be foolish, don’t be greedy, and don’t believe anyone who promises you easy money. This principal applies as much to other areas of business as it does cryptocurrency, yet cryptocurrencies are particularly vulnerable to this kind of con due to high amounts of fear and greed.
When is the best time for investing in Bitcoin ?
Investing in bitcoin is increasing. Now that you have clear ideas about various available strategies , you are among those who should be away of HYIP.
Next question is about the time you will enter to the market: buy bitcoin when its price is lower than the average of its historical performance. Many sites suggest “moving average” chart in which the enter and exit points to the market are shown.
Also, it works well to buy when its price is lower than the average of its historical performance. No one knows what bitcoin or cryptocurrency is going to do tomorrow or even the next hour. Contrary to stock, bonds or purchasing fiat, cryptocurrency is completely unstable rather than traditional investment.
This can be both good and bad: on one hand, you can gain easy and fast profits in a day, on the other hand, you may lose your entered capital another day .
So accept this, but do not expect your predictions always become true. This is because of that many traders use techniques like limit and sell orders to protect against real dangers which are not predictable.
more about investing strategy
When is the time to invest in bitcoin , there are some famous strategies to follow. In the end, you may find that a combination works best for you. And finding appropriate balance which increases your return of investment (ROI), and decreases your stress level in the market at the appropriate time, is normal.
Let’s investigate famous strategies for trading bitcoin.
Long term: Hold
The Bitcoin HODL (hold on for dear life) community is strong. Bitcoin is the first successful global cryptocurrency. Besides, these facts that it has introduced blockchain to the world, as well as economic and social freedom were with this cryptocurrency .
HODLers believe that bitcoin effort is to release people from the world’s bad and corruption financial system. In addition, they believe that you will see the increase of the value of bitcoin in the long term. Notice that there are less than 4 million bitcoins for mining. The shortage of this digital property is undeniable .
This has been the easiest strategy for bitcoin investment to be followed. You buy it when the price is decreasing, and keep it. That’s it.
If you review the date of bitcoin prices, every person who had followed this strategy from the middle of 2017, made out in a big way.
Short – term : Daily Trading
Daily trading is a more active approach for cryptocurrency. Daily merchants are looking for making profit based on the understanding of the market instead of keeping their bitcoin. For these investors, using the best market tools is necessary. Advanced analysis of the market and trading robots are two excellent examples of famous daily trading tools that can improve your ROI .
Strengthen Your Position
Day traders gain the profit by passing time of the market fluctuation. A smart Day traders knows how to make profit even when the market is red. In a bear market scenario, these merchants strength their situation. In this trading strategy, you need to sell your bitcoin when the price of the market is decreasing, and buy when the price becomes less than the first time.
Result: more bitcoins. This strategy is easier said than done, however.
Many investors use the combination of these tactics to achieve the goal of increasing their bitcoins. These investors keep the bitcoins until the huge adjustments of the market. As a cryptocurrency investor, accurate examination of new developments of cryptocurrency market is important. In theory it’s easier to predict a bear market than a bull market.
Remember, cryptocurrency market is still new to many investors and bad medias can spread FUD (fear, uncertainty, and doubt) which causes a sell-off by worried investors. For example, if you wake up tomorrow and type bitcoin in google searches, the three first pages are negative stories which are negative, it’s likely that this will cause the price of Bitcoin to drop. How much? Nobody knows
Comparing market cycle
Market cycle is similar to tides of the ocean. While no one knows to what extent they can be strong, they can reference the year’s prior activity to get a general idea of when market activity increases or decreases. Bitcoin is now 10 years old , and a decade has passed on market research that can be examined for better understanding of bitcoin market .
It seems that the recent market had the least fluctuations and was stable in these years. Does it mean that bitcoin is stable ? Probably not. usually bitcoin will experience the market’s instability after this behavior .
Low buy, high sell. This is an investment principle which is repeating by experts throughout the crypto space. While it seems very easy, predicting when the dip is at its lowest point is tricky, to say the least. The best strategy is to review the diagrams of the market and if the tilt was near the resistance lines , then buy . Resistance lines in a market charts and if the dip is near resistance lines, buy. Resistance lines on a market chart represent points in which the market showed an increase in buying activity, thereby stopping the bear.
Following the trading activity of whales (big players) within the Bitcoin market is another great way to schedule your buying orders. Bitcoin whales are people that own huge amounts of a Bitcoins. A recent Bloomberg report revealed that just 1,000 people own over 40 percent of all the Bitcoin in existence. this is huge.
When a whale makes a move, the entire market responds. A report published by Investopedia in September 2018 highlighted this scenario. The report showed how one whale caused a $53 billion Bitcoin sell-off. The moral of the story, watch the whales because they can affect prices dramatically.
Law enforcement officials are stepping up their crypto confiscations, and if you are looking to invest heavily into cryptocurrency, these scenarios are ideal.
Large-scale crypto auctions provide you with the perfect opportunity to get huge sums of crypto at discounted rates.
Longtime crypto investor Tim Draper famously bought nearly 30,000 confiscated Bitcoin from authorities following the Silk Road bust.
While Draper refused to give the specific price details paid, a report by Fortune magazine places the average price paid for Bitcoin at around $334.
is investing in Bitcoin a good idea now?
As always, answering this is not that simple, and it mostly depends on who you ask. There are a lot of respected names in the financial world that are pro-Bitcoin and are quite bullish on it. Tom Lee of Fundstrat Global Advisors, for example, previously believed that BTC will hit $25,000 per coin by the end of the year. He gave up on this prediction when the bear market continued, but he also predicted another price, stating that Bitcoin will end the year at $15,000.
He has yet to change this prediction, which means that he likely expects a bull run to start at some point in December.
John McAfee is also known for being bullish on Bitcoin, and he even came up with his own ways to predict its future. This has led to some astronomical predictions, such as Bitcoin reaching $500,000 per coin by 2020.
Billionaire Tim Draper also believes that the market will bounce back and that cryptos are far from being dead. Thanks to these predictions, a lot of people think that now is the time to invest, since Bitcoin is currently much cheaper than it was earlier this year. It is unlikely that its price will drop further at this point. This leaves only one direction for it to go — up.
Of course, nobody knows the future, and all of this is only speculation at this point. However, cryptocurrencies are known to move in cycles, which is something that experts and analysts are well aware of. If so many of them claim that BTC will soon start rising, it might be profitable to heed such advice.