While some might still be wondering what Bitcoin actually is and how it works, others are already ready to jump on the investment bandwagon but might not know where to start. While learning the ins and outs of cryptocurrency trading platforms is a key step to being able to invest, knowing when to invest is equally important – but with its ongoing volatility and fluctuating popularity, is there really a ‘right’ time to invest in Bitcoin? We’re exploring deeper below.
What’s The Best Time?
You may or may not be surprised to know that there technically is no ideal time to invest in Bitcoin or its altcoins. As with every other market, most investments will need to be done with long-term dedication in mind. Markets fluctuate, change, crash and grow and Bitcoin sees this faster than most but with patience, close BTC chart analysis and smart risk assessments, investors can easily get involved with Bitcoin at any time they see fit. Those wanting to make a pretty penny in the short term could put themselves at risk of losing everything.
As we saw in February of this year, Bitcoin is very capable of crashing and while there are ways to ride out the crashes and benefit in the long run, those opting for short-term investments could find that they don’t quite see the results that they’re expecting. So, while there’s no best time to invest, there is an ideal length of time in which to invest – and that is as long as possible.
Are You Investing Or Holding?
One of the most important things you need to consider when it comes to bitcoin investments is whether you’re planning on actually investing in the currency to help it thrive, or you’re holding the coins you’ve invested in in the hopes of making a profit. While holding can work in most markets, the decentralised nature of Bitcoin means that without purchases or transactions taking place, the price can’t really be stabilised. The smallest of purchases can affect the overall price of the currency, and with 40% of the cryptocurrency being held by just 1,000 people, a single movement of the coins or the sale of any held coins could completely rock the market.
For this reason, holding bitcoins for the pure reason of hoping they’re worth a lot in the future is another risky move. While Bitcoin could stabilise over the years, there’s also the risk that your coins may disrupt, destroy, or skyrocket the market depending on public reaction.
Is There An Ideal Time To Trade?
So, if there’s no ideal time to invest and holding coins could have such a devastating effect, is there an ideal time to trade or use them for transactions? This is, again, a matter of watching the markets, analysing price fluctuations and being willing to take risks. You can never be sure whether the price will grow higher or drop lower when you trade – the most you can do is watch trends, use careful analytics and make smart decisions when it comes to your bitcoin trading investments.
How To Make Sensible Investments In Bitcoin
With all of this talk of sensible investments, how do you do that, exactly? We’ve decided to round off with a couple of tips for smart, careful investments for those new to Bitcoin investing:
The most important thing you can do when it comes to investing in Bitcoins is to educate yourself not only on the markets as a whole but on what Bitcoin is and how it works. Understanding how one purchase can affect the entire market and even knowing how to buy, sell and trade with great detail can help you learn how to do it quickly, effectively and with lower or minimal risks overall. Investing in Bitcoins solely to chase profit is a mistake that hundreds of traders are making. The market is too full of risk so Bitcoin investments should be a labour of love, and one that you put dedicated time and knowledge towards.
- Be Smart
Waiting for the market to hit an all-time high or an all-time low is a fool’s game – you never know for sure whether it will grow in value or drop. Investments can definitely pay off, but if you want to buy bitcoin at a low cost, as most do, then buy when the trend dips regardless of whether it’s been cheaper before or not. Similarly, if you’re looking to sell, don’t wait around for things to look better. Sell when the market rises, or you could miss out on a valuable chance. It’s a risky investment to make, but that’s all part of the thrill.
In short, there’s no ideal time to be investing in Bitcoin. By simply buying in a dip and sticking with your investment for the long-term, you’re likely to see a return on your investment in some way. Providing that you’re in a financial situation to start investing, why not give it a try?