When Should You Buy Bitcoin?

One of the main questions that every potential buyer asks himself is “Is now a good time to buy bitcoin?” The problem is that there is no definitive answer to this question, and it depends more on the reason why you are buying bitcoins. If you want to trade bitcoin (which means buying low and selling high) for profit in the short term, you need to familiarize yourself with the various bitcoin trading methods. If you are interested in bitcoin because of the relevance of this technology and think that bitcoin has a bright future, you can buy it in two ways:

Cost Averaging In this case, you regularly buy bitcoins for a fixed amount on a certain day, regardless of the price. This is how you average out exchange rate fluctuations.

Buying Regardless of Price Those who believe in the long term argue that it doesn't matter if you buy bitcoin now or when the price is $500 or even $5,000 lower. In the long run, the price will rise and the difference in purchase cost will seem insignificant. If you are just getting started with bitcoin trading, we suggest using the first approach as it will help you understand the process faster and then decide if you want to change your buying strategy.

Why is the price of bitcoin rising? One of the most significant factors is the greater involvement of the audience around the world, more and more people have the opportunity to buy bitcoin and other types of cryptocurrencies. The second factor that positively played on the price of bitcoin is the coronavirus pandemic. At this time, the authorities spent more than the states earned - the result of the policy of stimulating the economy of various countries will be the depreciation of traditional currencies. The third factor is that large companies and hedge funds have become much more interested in and investing in bitcoin. Bitcoin price against US dollar Tip: Invest no more than 10% of your portfolio in individual stocks or risky assets such as Bitcoin or other cryptocurrencies.