When Is The Best Time To Buy Bitcoin?

Bitcoin and other cryptocurrencies are famous for being volatile. Some people have become millionaires due to this volatility, and others have gone from grace to grass. This volatility has many people questioning, “When is the best time to buy Bitcoin?” The deciding factor is knowing when to purchase Bitcoin at the right time. There is no longer a question of if you SHOULD buy Bitcoin, but WHEN you should buy it. Today, Bitcoin accounts for $56.7 billion of the world’s money. 

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What to Know Before Purchasing Bitcoin

Before purchasing Bitcoin, it is important to make the right purchasing decision at the right time. Several economists have conducted analyses and come up with results based on observations of the market price factors. You can think of buying Bitcoin as an exchange between two fiat currencies. 

• In the case of high demand, prices will go high. 
• Business hours are not suitable for purchasing Bitcoin due to more people involved in trading.
• Business hours outside the United States are preferable for purchasing bitcoin.
• The psychology of market cycles impacts Bitcoin.

Although the value of Bitcoin is constantly changing, specific patterns have remained relatively constant and can be utilized when making a purchase.

Is Now a Good Time to Buy Bitcoin?

The price of Bitcoin has steadily dropped in the past few months. If you have been looking for an entry point to purchase Bitcoin, then you’re in luck. However, it depends on whether you are looking to invest in Bitcoin for a long time or not. Expert investors recommend dollar cost averaging into Bitcoin weekly or monthly rather than trying to time the market.

Although the price of Bitcoin will continue to go down in the short term, Bitcoin still maintains its attributes as a good investment in the long term. There is increased adoption of Bitcoin by banks and other major institutions; thus, the current state of Bitcoin offers a comfortable position for long-term investors. However, do not invest your life savings in Bitcoin and only invest as much as you can stand to lose. 

Best Time of the Day to Buy Bitcoin  

Generally, it is better to purchase Bitcoin during the afternoon because prices tend to be lower. The time is usually from 3 pm to 4 pm. you could also get a good deal around 11 pm till midnight. These times, Bitcoin prices tend to be at the lowest, and irrespective of the size of your investment, you can save money on your initial purchase price. 

Best Day of the Week to Buy Bitcoin 

Because Bitcoin is more prevalent among professionals, the prices are higher during the week. If you want to save money during your purchase, Sunday is a good day to try. Monday is also good, so long as you buy before the week gets busy.

The Best Month to Buy Bitcoin

Analysis favors August as the best month to purchase Bitcoin. Cryptocurrency has a history of volatility, and August has a history of being the best time to make crypto purchases. 

Although these are results of the analysis carried out by economists, it is preferable to research and carry out other background work before utilizing the results of this analysis. You can look on historical trend lines to see which months Bitcoin is typically the lowest price.

Things to Do When Buying Bitcoin 

• Educate yourself: Do not trade or invest in cryptocurrency if you have little or no knowledge. There are a lot of resources on the internet that you can use to educate yourself on cryptocurrency and how it works, such as Cryptocurrency Haus. Although this is time-consuming, it is an effective way to get a headstart on Bitcoin investment.
• Avoid panic selling: It is good to sell and make a profit when the price of Bitcoin is high, but selling at every high price point is not advisable. It is easy to get panicked by things you read online and want to sell as soon as possible before the price crashes. However, always remember that holding Bitcoin in the long term is the best strategy. 
• Buy on the dip: Due to the market’s volatility, it is inexcusable that the price of Bitcoin will sometimes fall. The best time to invest in Bitcoin is when the price is low. If you are not used to the crypto market, this may sound like a wrong move, but Bitcoin could appreciate or depreciate value within a short amount of time. 
• Study and understand market trends: It is preferable to know how to study the market trends and make decisions based on the occurrences in the market rather than going with the crowd.

Is Bitcoin a Reasonable Investment?

Before concluding whether any investment is suitable for YOU, you need to conduct risk analysis and research the nature of the investment. Generally, the higher the risk associated with an investment, the higher the chances of making huge profits (or losing a lot of money).  

If you are new to cryptocurrency trading, Bitcoin is a good option because it has the most extended history and a high trading volume. Investing in Bitcoin is an excellent way to diversify your portfolio, although experts recommend your investment portfolio has no more than 5 percent cryptocurrency. 

How to Invest in Bitcoin

There are different approaches to investing in Bitcoin besides the traditional method, which is also quite profitable. They are:

• Purchasing Bitcoin on an exchange – One of the most common methods to invest in Bitcoin. You buy Bitcoin on many popular exchanges, such as Coinbase, Binance, Robinhood, and others.

• Bitcoin ETFs – ETF stands for exchange-traded fund. They allow you to buy into the fund without trading the cryptocurrency directly. The ETF does this by copying the digital currency’s price (Bitcoin).

• Bitcoin funds – Although Bitcoin funds are still volatile, selling your investment and getting returns is more accessible here than trading cryptocurrency directly. 

•  Bitcoin options – These enable you to trade Bitcoin at a specific price following a stipulated expiry date. This differs from the standard method of purchasing Bitcoin because you can take a speculative stand on the direction of Bitcoin price in the future.  If you believe the market price will increase, you can buy a call option. You can also if you think the price will decrease.

Two things can happen depending on the accuracy of your prediction. 

• If the market goes according to your prediction, the Bitcoin increases above the specified strike price, and you can purchase Bitcoin at a specified price. The difference between the strike price and the current price determines the amount of profit you make from the transaction. 

• If the market goes against your prediction, the Bitcoin price drops, and you can let the option contract expire. Thus the only loss you incur is the premium you invested in the trade.