When exactly is the right time to buy Bitcoins? The big question really is if buying Bitcoin is a good idea after all. A lot of investors and analysts would tell you that Bitcoin or any other cryptocurrencies are highly speculative in naturel and people should be aware of the risks or the potential losses in this Bitcoin era.
Bitcoin is highly volatile but the trends would speak volumes of how it has managed to be profitable and stay afloat despite the dips and valleys. Bitcoins prices have fallen tremendously over the past several months and the declines would prompt investors to buy. Is this a good move?
Is It a Good Idea To Buy Bitcoin Now?
Analysts would tell you that it’s really difficult to forecast what the prices would be as there are varying cycles of boom and bust especially with therecent surges and retracements over the past months. The digital sector is very hard to predict because of the volatile movements.
There is nothing to work with the present bearish movement of Bitcoin because this seems to be a natural reaction after the bullish trend in 2017. It doesn’t pose any serious problems with investors. The price decline actually is crucial to the appreciation of Bitcoin prices. Now that a lot of large and reputable financial institutions are seriously looking at the potential of Bitcoin, the rise of market price is definitely guaranteed.
Looking at Long-Term Investments
Looking at the downward and uptrend of Bitcoin prices, financial analysts would have to say that investing in Bitcoin for long term would reap the best performance or profit. So, when the prices go down, investors and traders must take advantage of this and employ strategies such as the “dollar cost averaging” and “buy the dip”.
There is a bullish trend going on and now is the time for investors to buy and hold Bitcoins. There is a strong potential of growth happening for Bitcoin. This is in fact considered stronger and more dominant in pricing as compared to traditional assets.
The current drop in the price of Bitcoin could signal the opportunity to buy. However, in reality, your buying decision would ultimately rely on how much you believe in the potential of this cryptocurrency for the long haul.
It’s normal that people would rush into buying absolutely anything, including Bitcoins, when the prices go down but people should look for key indicators or strong momentums that forecast parabolic cryptocurrency returns in the future.
Buying bitcoin is not just about checking in on the political or financial developments that may impact its price but also to focus on long-term price performance and not just in trying to chase quick profit. Experts and analysts would advise never to sell your Bitcoins but to buy the dips. You should find the right entry point in buying and to hold Bitcoins for long term.
Analysts observe a trend that the Bitcoin prices would usually dip in the summer months or from July to October; which has happened for the last seven years. August is said to be the best month to buy.
With Bitcoins or any other digital currencies, it is wise to note that there will always be disparities or oddities in terms of prices because of its volatile nature. Bitcoin prices have always been driven by many societal, political, and even emotional factors. You should always be attuned to these drivers and how it affects Bitcoin market trends.
Bailey Hudson is a creative content writer from Texas USA. He graduated in 2012 at the Hult University with a degree in Mass Communication. He created Bailey Doest Bark in 2015 and is currently the managing editor of the online portal.