Finding the 'Right' time to invest in Bitcoin
Far from being a red flag best avoided, this is testament to the fact that with Bitcoin more than most other trades, timing is an imperative aspect of success, though perhaps not in the ways that you might assume. As such, while there isn’t exactly a ‘right’ time to trade, these tips can at least help you to find the time that works best for at least helping you to earn big from your efforts here.
Author:Gordon DickersonReviewer:James PierceOct 13, 202194K Shares1.4M Views
Bitcoin markets that have been known to fluctuate by as much as 30% in just one short dayare enough to send even experienced traders into a tailspin, with as many as 95% ultimately losing money here. Yet, peak values of nearly $20,000 in late 2017 and further notable resurgences throughout 2020, make this a difficult market to forget.
Far from being a red flag best avoided, this is testament to the fact that with Bitcoin more than most other trades, timing is an imperative aspect of success, though perhaps not in the ways that you might assume. As such, while there isn’t exactly a ‘right’ time to trade, these tips can at least help you to find the time that works best for at least helping you to earn big from your efforts here.
Find Entry Points With Dollar-cost Averaging (DCA)
In place of trying to time a market that largely runs outside of any feasible time frame, many traders are turning to dollar-cost averagingto find the ideal in-point. By reducing the impact of market volatility using smaller investments made more often, DCA is a long-term strategy that enables an investment scheme according to you, rather than Bitcoin's unreliability. Without having to necessarily attempt navigating this ever-changing market, or risk losing a lump sum on so-called ‘peak’ investments, this enables you to largely overlook what’s happening to Bitcoin in the moment for affordable investments always made at the right time for you.
What Is Dollar Cost Averaging?
Consider What’s Gone Before
Honestly, tracking Bitcoin’s history isn’t going to provide you with a profitable in-point like research might on other stocks because of how up and down things have been. That said, researching this short past using historical data collected through a stock apiwill still help you to better understand not necessarily where Bitcoin markets are going, but why taking your time here matters so much in the first place. Realizing that Bitcoin’s history is largely one of growth especially helps to prove that, despite some notable price retrenchments, profits here are very much possible when approached with realistic timelines in mind.
Set Price Targets
Notable Bitcoin risksmean that, in large part, the ‘right’ time to get stuck in is irrelevant as long as you’re patient enough to play the long game. DCA will help you to achieve this, but it’s also imperative to set price targets that allow you to time your exit right. After all, with fluctuations so unpredictable, timing a trade sell is as essential as buying at the right time in the first place. Specifically, traders need to look past market volatility according to price targets that they’ve set for themselves. This way, you can keep investment steady, and at least a little more reliable, regardless of market shifts.
There might not be a ‘right’ time for Bitcoin in general, but there’s certainly a right time for your investment journey, and each of these tips can help you to realize it for boosted profit potential at long last!
Gordon Dickerson
Author
Gordon Dickerson, a visionary in Crypto, NFT, and Web3, brings over 10 years of expertise in blockchain technology.
With a Bachelor's in Computer Science from MIT and a Master's from Stanford, Gordon's strategic leadership has been instrumental in shaping global blockchain adoption. His commitment to inclusivity fosters a diverse ecosystem.
In his spare time, Gordon enjoys gourmet cooking, cycling, stargazing as an amateur astronomer, and exploring non-fiction literature.
His blend of expertise, credibility, and genuine passion for innovation makes him a trusted authority in decentralized technologies, driving impactful change with a personal touch.
James Pierce
Reviewer
James Pierce, a Finance and Crypto expert, brings over 15 years of experience to his writing. With a Master's degree in Finance from Harvard University, James's insightful articles and research papers have earned him recognition in the industry.
His expertise spans financial markets and digital currencies, making him a trusted source for analysis and commentary. James seamlessly integrates his passion for travel into his work, providing readers with a unique perspective on global finance and the digital economy.
Outside of writing, James enjoys photography, hiking, and exploring local cuisines during his travels.
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