what is the price of bitcoin https://www.binance.com/en/price/bitcoin
Investing in cryptocurrency became a controversial matter, considering the industry is relatively new, and the increased risk of crypto losing its value shortly is determining governments not to provide regulation. Unfortunately, this only deepens the problems because, with no legal framework, cryptocurrency adoption is not possible.
However, Bitcoin is closer to adoption than other coins. That’s because it is the first digital coin ever created, and its usability increased considerably through the years. Now, Bitcoin ATMs are all over the world and one country, El Salvador, made it legal tender so that citizens could slowly use it more frequently and escape inflation and the US dollar shadow.
As you can see, Bitcoin has been through a lot, and if you’re wondering what is the price of Bitcoin for future investments, know this takes more than the price’s condition. Volatility spikes might scare you away, but there are many other factors to consider when investing in Bitcoin that are timed.
Is “now” the best time for investments?
Most investors and users urge others that now is the best time to invest in crypto. This means that whenever you’re starting with Bitcoin, just be straightforward and get to action as soon as possible. This belief has been circulating recently, especially when Bitcoin’s value increased considerably, making it more difficult to own or mine.
There is a little bit of truth in this piece of advice. That’s because crypto relies on time for actual
value, so an asset that passed the time test and went through different challenges is really worth investing in, such as Bitcoin. Of course, there are a lot of digital coins out there, 22,932 more specifically, but only a few are active on the market. That means that despite their successful deployment, these coins need consistent usage and circulation to be truly valuable.
“Now” might not be the best time
While it is indeed true that it’s always better to start early in crypto, sometimes you might want to have a look at the market’s condition. That’s because volatility spikes are sometimes so dramatic that crypto will lose its value overnight. For example, in 2017, Bitcoin experienced one of its biggest crises when it lost around half of its value in less than a month. In a matter of days, the price of Bitcoin went from almost $20,000 to less than $11,000.
Indeed, investing in Bitcoin within that period might’ve been disastrous for your portfolio. That’s why consulting the media and investors’ sentiment index over time is essential to learning when is actually the right time to buy or sell bitcoins.
Luckily, you are provided with numerous tools that help in the decision to invest at a certain time. If you just started with crypto, it would be best to develop a thorough portfolio, so you have something to deal with. Now, get familiar with the terms of bear and bull markets.
Beware the bear and bull markets
In the crypto industry, these two terms indicate when the market goes in a specific direction so investors can develop their next move. During the bull period, prices will increase, and the overall positive market tendency will influence the entire investor sentiment. On the other hand, the bear trend occurs when prices decrease and investors are selling their assets for fear of losing money. Real-world events, such as economic and political crises, can determine these situations.
Still, the crypto industry isn’t entirely affected by governments, for example, or other real-world events because it’s decentralized.
But knowing the signs of these two markets will help you guess when is the best time to invest in Bitcoin and other coins as well. For example, if you decide to buy Bitcoin during the bull run, your action will contribute to the upward trend, increasing your profits. However, most investors prefer to buy during bearish periods due to the low prices so they can sell at higher values in the bullish market.
Regardless, investing in the bull market leverages minimal and temporary losses. Still, to make the most out of it, you need to start investing early to sell Bitcoin when the market is close to the peak, followed by a slow decrease. Don’t worry, bull markets tend to last longer.
Investing in a bear market means more risks because there’s less confidence in the crypto industry. Still, this time might be the best to prepare for future returns. So, investors buy low and sell high but also sell crypto during downturns and repurchase them at a lower price during the market’s declining trend. Unfortunately, telling how much a bear market will last is almost impossible because if it’s linked to worldwide events, it can disappear in a matter of weeks or years. Until now, the longest bear market lasted about three years, from 2013 to 2017. And, as experts say, we’re about to witness one of the most extended bull cycles considering the FTX collapse.
Still, sometimes it’s best to play it safe
Despite all the tricks and strategies, it might be a better idea to invest safely. This means investing for the long term and keeping your coins as much as you can so they can have more value in a span of a few years. This means that despite bull or bearish markets, you HODL (hold on for dear life) of your cryptocurrencies are not afraid of FOMO (fear of missing out). This is an ordinary challenge investors deal with during bearish markets because it’s normal to fear you’re going to lose your money in difficult times. Therefore, the best time to invest is when you’re ready.
What’s your next move?
Now that you know that the best time to invest isn’t limited by time, you can decide your next move. As always, it’s advisable to be careful with handling cryptocurrencies because they’re prone to high volatility spikes. Still, what you can do best is hold your coins and develop your portfolio for the long term to be a successful investor.