People who have become wealthy through Bitcoin often give the answer of yesterday or years before when asked when was the optimal time to buy it, which may or may not be accurate; last year saw Bitcoin reach $60,000 mark and anyone holding assets before then were sure to reap benefits.
Although Bitcoin investors haven’t had it easy in 2019, the pioneer cryptocurrency has taken significant hits and recorded sharp price decreases of less than $20,000. A stark contrast from its record heights seen last year.
Even so, Bitcoin’s value has seen some modest increase over the past several months despite this situation; still far off from its all-time peak of $23,085.009. At present, one Bitcoin is valued at approximately $18,958.09 with prices fluctuating between $17,000 and $23,000 range.
Investors and enthusiasts of cryptocurrency remain befuddled as to when to purchase Bitcoin due to its inherent instability. The recent crypto market crash only compounds this uncertainty as many investors recently engaged in an uncontrolled digital asset selling spree.
Do you wonder when is the optimal time and way to purchase cryptocurrency? Read this comprehensive guide for an answer.
Why Should You Buy Bitcoin?
There are currently so many cryptocurrency tokens on the market that it would be hard to make an argument in favor of Bitcoin as one of them. Instead, many investors tend to prefer altcoins over it due to its higher price point – especially first-time investors looking to gradually invest money rather than dump large sums quickly.
Low-cost tokens are attractive to traders because they allow for faster diversification, potential yields, and little risk in exchange for large rewards. It’s an efficient strategy with minimal downside risk and high potential returns.
Ethereum’s DeFi blockchain may be a revolutionary token, but Bitcoin remains the superior one. Though recently experiencing significant decrease in value, Bitcoin remains the token to invest in. If that is still unclear to you, here are a few reasons:
Bitcoin Is The First Cryptocurrency
Bitcoin will never lose its relevance as long as it remains the pioneer cryptocurrency.
As is evident by its widespread adoption and market dominance, when people talk about “cryptocurrency”, many refer to Bitcoin. This has serious long-term repercussions.
It Is The Cryptocurrency “Standard”
Bitcoin is the benchmark cryptocurrency. It corresponds to one dollar in fiat currencies such as USD.
Though most places have yet to embrace cryptocurrency payments as the norm, several nations and organizations have already adopted Bitcoin as the de facto payment standard. You are more likely to find grocery stores accepting Bitcoin payments than accepting other altcoins such as Litecoin or others.
Bitcoin has quickly become one of the world’s most beloved base coins.
There are various exchange platforms where traders can carry out P2P (peer-to-peer) transactions. Here are some of the more popular trading pairs:
BTC/ETH and USDT/BTC pair is the most sought after combination, making trading of these base tokens the norm for many people. Due to its market capitalization and popularity, more people tend to trade using either of them than with any other.
Bitcoin remains the more prominent and often-utilized base token among these two crypto giants for exchange trading pairs.
When Should You Buy Bitcoin?
Are You Wondering If Now Is the Right Time to Purchase Bitcoin? Once you understand why Bitcoin should form part of your portfolio, the big question becomes when and why should you acquire some.
Bitcoin can be purchased anytime with enough capital and risk tolerance. As it stands today, its worth exceeds $20,000. You can invest even small amounts and watch them grow!
Bitcoin prices often vary dramatically and there are numerous opportunities to purchase it. You must closely follow market trends and charts in order to know when to buy or sell, since trading and purchases typically require time. Other investors might use tools like trading bots, data aggregators or Rainbow Charts.
Traders utilise proven strategies, like buying the dip. While it isn’t an exact science, doing it requires daily price shift monitoring as well as collecting lots of data about price trends and market swings if this approach is chosen.
As there’s no certain way of knowing the ideal time or method to buy Bitcoin, now could be an ideal opportunity.
No surprise there. Bitcoin has seen its lowest point for years! After reaching its peak just last year, many believe that its price will rebound over time.
Investors who missed the initial rush and did not buy bitcoin when its price was as little as $1 now have a second chance to profit from its rise.
Consider Bitcoin purchases from different angles:
Time Of day
Markets and exchanges indicate that 3 PM is an ideal time for purchasing Bitcoin as most people head home after work at this hour. You should be able to conduct your transaction quickly during this time frame, according to market sentiment analysis.
As many are either too sleepy or exhausted to think clearly at this time of night, purchasing Bitcoin at night is considered to be the ideal time.
But as always, when dealing with Bitcoin and cryptocurrency markets – known for their high degree of volatility – care must always be taken.
Day Of The Week
Date of Purchase Is There an Ideal Day to Buy Bitcoin? mes Weekends could be an excellent time to find out.
Business professionals typically trade Bitcoin on weekdays. As demand dips on weekends, prices tend to decrease; therefore, you should be ready to purchase at a reduced cost.
Weekend trading activity remains low, giving astute investors the chance to acquire Bitcoin at discounted rates.
Month In The Year
August is the ideal month for buying Bitcoin as prices are at their lowest compared to any other point in time during 2018.
Expert Analysis
There are two aspects to keep in mind before purchasing cryptocurrency: its current market value and future potential. Bitcoin tends to fluctuate more in relation to dollars on exchange platforms than other tokens do, for instance.
Demand and supply still apply: when demand increases, prices spike; when it drops (such as currently), buying bitcoin might be wiser.
Business hours may be ideal for trading, as they provide greater market liquidity. However, purchasing Bitcoin during these hours should not be done due to time zone differences and market speculation; additional factors should also be taken into consideration.
Factors Affecting The Rise And Fall Of Bitcoin
Being aware of when and how best to buy Bitcoin is essential, but understanding what drives its price movement will allow you to make better decisions.
Cost Of Production
Even digital assets need to be manufactured, and Bitcoin production costs are relatively high.
Bitcoin uses a proof-of-work consensus model, meaning its blockchain must be mined. Mining requires substantial amounts of electricity as well as costly hardware.
Miners compete to solve complex mathematical puzzles used for verification processes, necessitating more sophisticated hardware and, by extension, more electrical energy usage.
By following this procedure, it may be possible to influence the price of bitcoin.
Competition
Bitcoin remains the leader by market cap, but other cryptocurrencies like Solana, Dogecoin, and Ethereum are making strong claims as potential competitors in this space.
Investors are diversifying their portfolios, which is impacting the relative values of altcoins to Bitcoin.
Regulations
Global regulators are still exploring the best way to classify and regulate bitcoin as it remains an emerging asset class. Blockchain technology remains in development with numerous grey areas yet unexplored by professional analysts.
Many governments remain unclear how best to approach Bitcoin due to its unpredictability. Furthermore, its status as a decentralized asset makes taxation an additional issue.
Bitcoin is a highly risky asset due to the combination of various factors.
Conclusion
Since Bitcoin prices can change quickly and dramatically over time, it is best to purchase when prices are at their lowest and there is room for growth – though nothing can be guaranteed given its unpredictable nature.
Now is an opportune moment to purchase Bitcoins.
