When Is The Right Time To Buy Bitcoin?

Is now a good time to buy? Or should you wait and hope that the price drops a little? You've probably asked yourself this question at some point.

If you have already studied the topic and believe in the success of cryptocurrencies, the best thing to do is to buy Bitcoin now and just wait. After all, it pays off much more to invest for the long term than to try to catch the right moment. Here's why.

Possible scenarios

It is important to understand that nobody (!) knows how the price will develop in the short term. However, there are very intelligent people who deal with this and develop extremely complicated mathematical models. In the end, however, these can only calculate probabilities. You often hear sentences like,

"The price will probably go up."

But they are also often wrong. True, they are professionals whose success depends on doing their job well, but even the best sometimes make mistakes.

Some people also say,

"Bitcoin is so volatile - I'd rather wait until the Bitcoin price drops a bit more and then buy."

But this is a big illusion. Because that's exactly how the particularly cautious always miss out on getting in.

When the price was at $30,000, you probably didn't buy. And it is quite possible that you wouldn't buy even if the Bitcoin price fell back to $30,000. You may think you would buy then, but that's an illusion. Because when the price reaches that level, you wonder if the Bitcoin price will continue to fall. This is precisely why you are likely to miss the opportunity again.

Everyone likes to buy at low prices, but isn't it worth waiting? No. Because it is proven that trying to beat the market is more disadvantageous than being disciplined and re-buying regularly.

New to the crypto world? What you need to know…

Let's do a little exercise. Let's say you can invest $1,200 per year. You could manage to buy at the lowest prices and never go wrong consistently. However, an inexperienced investor is wrong more than half the time. Therefore, it would be more profitable to buy $100 every month without paying attention to the price. Meanwhile, many companies already offer an automated investment function for investing in cryptocurrencies.

This chart of the American stock market index S&P500 compares these two strategies. So the difference between automated or regular investing versus just speculating on price crashes.

"Buy the Dip" (blue line) means to buy whenever the price is falling. The red dots signal these buying times on the blue line. On the blue line. On the other hand, DCA (Dollar Cost Averaging) means regularly buying, regardless of the price.

As you can see, the DCA strategy earns you more in the long run than if you try to buy the dip. And "buying the dip" means that you have to guess 100% when the price will stop falling. And that is practically impossible, even for professionals. So it's more profitable to buy regularly, regardless of the cost.

Don't try to beat the market.

What we want to get across to you is this. Don't try to beat the market. After all, if you're convinced about crypto, you should go for it and invest for the long term. Those who bought in December 2017, when the Bitcoin price almost reached the $20,000 mark, made losses for nearly three years. But today, they are 100% up with their investment.

So the most important thing is not the short-term development, but the essential news about general acceptance. So here is some good news:

• In just 12 years, Bitcoin became a national currency, namely in El Salvador.
• Today, crypto companies already have their banking license and even crypto banks.
• Several exchange companies now hold Bitcoin.
• Wall Street legends like Ray Dalio and Paul Tudor Jones believe that Bitcoin is the future.
• Bitcoin is spreading faster than the Internet. This means that if growth continues, Bitcoin will be used by over one billion users by 2025

This news gives you some good arguments why you can invest with a clear conscience and in the long run. Interestingly people who invest in Bitcoin and hold the cryptocurrency for four years have a 99.9% positive track record.

All of my articles were written with a strictly personal opinion. Please make sure to do your own research. Never take one person’s opinion for financial guidance. There are multiple strategies and not all strategies fit all people. My articles ARE NOT financial advice.

Thanks for reading and your support! — Best regards, Günter Ederegger