When is the best time to buy Bitcoins (2024)?
Do you want to know the best time for buying Bitcoins? In this article, we analyse how to find the best moment to invest in Bitcoin. This allows you to achieve the best results with your investments!
When is the best time to buy Bitcoins?
If you’re starting to invest in Bitcoins now, you have to accept that you won’t make as much profit as those who invested in 2014. However, this doesn’t mean that it’s impossible to achieve a good return with Bitcoin investments. The maximum number of Bitcoins is capped at 21 million, which increases the likelihood of the price going up.
However, it’s very difficult to time your purchase correctly. When is the market really at its peak? And is Bitcoin here to stay or will the cryptocurrency collapse? By buying in increments, you can prevent investing all your money at once at an unfavourable time. The best crypto investors are those who realize that timing the crypto market is almost impossible.
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How does dollar cost averaging work?
If it is not your goal to beat the market, and you believe in the future of Bitcoin, you can use dollar cost averaging. The idea behind this is that you buy Bitcoins for a fixed amount periodically (for example, every month).
As an example, you could buy $500 worth of Bitcoins on the first Monday of every month. This allows you to sometimes buy Bitcoins at a lower price and sometimes at a higher price. On average, however, you’ll benefit from the long-term increase.
A big advantage of this technique is that you can completely avoid emotions in your investments. Regardless of the price, you simply buy Bitcoin for a fixed amount. This can save you both a lot of stress and a lot of time.
Can you predict the dip?
Some investors try actively to predict the dip. When bad news is released, the Bitcoin price can take a sharp hit. This happens regularly: for example, after China announced in 2021 that they would ban mining, the price of Bitcoin dropped sharply. Even a positive or negative tweet from Elon Musk can cause the price to rise or fall by many percent.
However, predicting the dip is very difficult. Precisely because there are so many novice investors active in the market, you see that the price is unpredictable. When a tweet from one individual can have so much influence, it is difficult to predict the impact (unless you want to stalk Elon Musk 24/7).
You can adjust your strategy to the dip, though. For example, I buy more Bitcoins when the price has dropped significantly. If you believe in Bitcoin, it may be wise to buy Bitcoins in good times as well. You never know if there will be another dip and how far the price will drop.
I’ll tell you one secret though: the price won’t go back to $1.
Is there a perfect day to buy Bitcoins?
On average, it seems that Sunday evening is the best day to buy Bitcoins. This does not mean that Sunday evening is always a good time to buy Bitcoins, but it does mean that the price more regularly rises on a Sunday than on other days. If you use this as a starting point, you can buy Bitcoins on Sunday before 9 p.m.
However, keep in mind that this could be coincidental: historical data does not guarantee future results. In the coming years, Sunday may become the worst day to buy Bitcoins.
Alternative: active trading
The price of Bitcoins is extremely volatile. Whereas traditional currency pairs move only slightly, the Bitcoin price has made massive leaps. This erratic price movement makes it possible to earn huge amounts by trading in Bitcoins: you can profit from both falling and rising prices. At the same time, if you make a wrong decision, you can also lose a large amount of money with Bitcoins. But how do you ensure that you benefit maximally from this volatility in the Bitcoin price?
You do this by investing in Bitcoins in the right way:
- Buy Bitcoin when you expect the price to rise.
- Sell Bitcoin when you expect a price drop.
Do you want to learn how to increase your chances of success with active trading? Then read our guide for dummies:
Enter and exit
There are also investors who want to exit after bad news and then want to enter again later. However, this is risky: if the price doesn’t drop significantly, it could shoot up, and you could miss out on a lot of profit.
Therefore, it is important to not let your emotions determine your trading strategy: it is often smarter to buy some extra Bitcoins when the price drops instead of selling them. Invest with patience and a long-term horizon.
