The world knows Bitcoin as a speculative digital currency to invest in. Following the decades-old formula, the best time to invest in any currency is when the price reaches its lowest value. But does this apply to the trillion-dollar bitcoin too? Let us find out.
Among the 4000 different types of cryptocurrencies with varying nature, Bitcoin is known to be the pioneer of a market that works on a secure and encrypted blockchain, acquiring the trillion-dollar market cap. That is why investors can’t stake or afford to lose this precious asset due to any minor negligence.
The process of finding the right time to invest in bitcoin differs for anyone. Individual crypto enthusiasts prefer doing deep analysis, studying market trends, tracking the coin’s progress, and applying all the manual methods. Whereas large-scale companies and institutional investors like it, keeping automatic or using trading bots like Bitqt that majority of the time gives accurate conclusions. Whichever method you choose, there’s still room for some extra secrets that will every time help you find the right time to invest in bitcoin.
There have been countless times when bitcoin surprised the whole world with its unexpected spike in prices. The only reason for this is the high volatility factor that also remains a concern for investors looking to invest in bitcoin. Very recently, the largest trillion dollar cryptocurrency had a massive fall of 18%, which brought its price from a whopping $58000 to $42000-which is huge.
The moment it happened, social media was taken by the storm. It was flooded with tweets including Elon Musk and other major investors. As a result, everyone found it to be the best time for investing in Bitcoin.
2. Social Impact:
The world’s largest, biggest, and most popular cryptocurrency – Bitcoin, is dependent on a lot of factors for its price value. The recent decrease from 40 % to 35% in its price value was majorly influenced by the social comments targeting Bitcoin. The two most ardent investors Musk and Cathie, recently tweeted about Bitcoin mining coal use that might have become the reason for its price drop. To find the best time to invest in Bitcoin, it’s important for you to be familiarized with the ongoing crypto market and read between the lines about its citations on social media.
3. Rules and regulations:
Needless to say, it’s high time when bitcoin traders feel their bitcoin is at stake due to the strict rules, bans, and regulations imposed on it. The regulations on Bitcoin are unexpected and possess an evident impact on the decision to invest in it. From the US, Africa, and many other regions, Bitcoin is today confined under laws that can anytime steal it from you.
Nevertheless, the prohibitions are rapidly increasing, making Bitcoin a doubtful investment. Hence, invest at a place and at the time when you have the least perils accompanied with your Bitcoin from any third party.
4. Limited supply:
Every year, Bitcoin miners add up to more than 5 billion bitcoins to the total supply of Bitcoin. The existing 21 billion supply of bitcoin coins makes it a highly demanding crypto that should only be sold at the right time. As the bitcoin market heats up, there are high chances for Bitcoin to run out of the game, giving space to other cryptocurrencies. The high scarcity in Bitcoin keeps the supply in demand formula running and encouraging investors to invest in Bitcoin at the right time. Long story short, a best practice is to invest when the demand is low, as that’s when you’ll get the most competitive prices for this asset.
Who knew that once often-suspected crypto will be able to provide a safe way of transacting payments all over the globe. To sum up, there’s no definite answer to the right time to invest in Bitcoin because of its high volatility. But these factors may help you as a Bitcoin trader to invest at the right time and make things profitable in the long term.
However, a quite popular and tested way for getting maximum profits is to invest in bitcoin when it’s out for selling after holding. In this way, not only you’ll get maximum profits at your side but also a good crypto portfolio for buying a high in-demand cryptocurrency.
(Syndicated press content is neither written, edited or endorsed by ED Times)