Is now a good time to buy Bitcoin? If you are asking yourself this question, this article will help you find the answers. We can tell you now that it is a good time to acquire BTC, but this statement does require some clarifications. Below, we offer some key facts to help you assess the extent to which you may be interested in investing in BTC at the present time. Let’s get started.
Is it worth buying Bitcoin now?
First of all, we have to point out some general suggestions regarding BTC investment. You need to bear in mind that cryptocurrencies are subject, by their nature and since their inception, to certain price fluctuations. However, in the context of a market characterized by its oscillations, BTC, as the first cryptocurrency created and the most popular in this sector, is the one that is the least volatile. You can see our technical analysis of the bitcoin chart here.
Among other things, due to the fact that, in the field of blockchain technology, it has the lowest risk of bankruptcy. Don’t forget that this blockchain pioneer is very secure, as it has high guarantees against fraud that is so common with other cryptoassets. Therefore, if you have a profile that likes investment risk, but wish to minimize it in a market known for price swings, BTC is an interesting option.
We advise you to use BTC as a way to diversify your investments. A ratio of 10% of your risk assets and 3% of your overall investment portfolio should be considered.
Buy Bitcoin for the long term
Long-term purchase of BTC is the common pattern of investment in this class of cryptocurrency. It consists of entering the market when it is detected that the price of this cryptocurrency is going to start to rise in order to subsequently sell these assets and obtain an appreciable return. The price of BTC is very changeable, but, if you are patient enough to delay entry until you detect a change in trend, you are going to get your crypto revalued. The same applies to their sale once their price has risen.
In any case, buying BTC in the long term has proven to be, primarily, a useful form of saving. This is a good way to combat inflation, which causes your funds to lose purchasing power. Don’t forget that, despite eventual downturns, such as the current crypto-winter, BTC has seen, since its inception, an upward trajectory.
However, we remind you that, in order to follow this long-term strategy, you must be able to afford to keep your cryptocurrencies tied up for a long time. In fact, there is a position, known as hold which is not even framed within the dynamics of trading and is based on maintaining the investment in cryptocurrencies no longer for weeks or months, but over years, to ensure that this money generates a considerable return.
Swing trading with Bitcoin
Due to the nature of this asset, it is not particularly attractive for short term investments, such as swing trading, which involves taking advantage of price rises and falls. If you choose to try to take advantage of BTC volatility, for example, by intraday trading, you will have to set scrupulous take profit and stop loss orders to guarantee your profits.
If you opt for this method, you will want to go short or buy BTC at a discount when prices start to fall. If they are rising, you can buy and take a long position to exit shortly before this trend culminates.
Will Bitcoin rise again later this year?
The first thing we want to get across is that, once we hit the first quarter of 2023, most experts predict that BTC could rise in price by 13-40% over the course of this year. Not surprisingly, this cryptocurrency has proven to be one of the most appreciated assets in the market at the beginning of the year. Current growth expectations are better than those for the end of 2022.
This cryptocurrency has already risen significantly so far this year. Some analysts, the most optimistic, predict revaluations of up to 80%. Remember, in this regard, that it is the 17th most highly capitalized asset on the planet.
In short, the consensus among specialists is that this cryptowinter will not last too long. While it will take time to return to the highs reached, regulations and mass adoptions of this asset will make 2023 a year of rising prices.
Bitcoin technical analysis
The technical analysis consists of the interpretation of the graphs that show the BTC prices, but you also have to complement it with the fundamental analysis, which is what can explain the abrupt oscillations in the prices due to certain financial events.
Let’s start by saying that the price of BTC is currently around 30.000$, which represents an increase of around 80% compared to the final months of 2022. Although you also have to consider the price compression in recent weeks, which is no longer as volatile.
We are going to give you two tips based on technical analysis to assess whether it is a good time to buy BTC. Take note.
- If you opt for swing trading, you need to differentiate very well between supports and resistances. Try to hunt for a gap to go in short when the price is going to return to support, an example is between zones 1 and 2 on the chart. Regardless of the price now, look at the support and resistance (zone 1 and 2) and look for an opportunity. It is very important that you mark the supports and resistances on your chart.
- If hold is your thing, accumulate BTC in the support zone or even lower. After that, it is in your best interest that prices are corrected downward.
How can I invest in Bitcoin?
Are you still wondering if it’s a good time to buy Bitcoin? We have already told you that it is, but with some conditions that you have to take into account for your investment to be profitable. Now we tell you how you would have to face this decision.
The first thing to remember is that you can acquire these cryptocurrencies by buying them from someone you know or on the leading platforms and exchanges.
Accumulating them is a good idea if you are going to opt for the hold. However, you may prefer trading, which is a system whose profits are based on buying and selling these cryptoassets when you are in a favorable position.
You can start trading with as little as ten dollars, although it is not recommended. Nor is it ideal if you have no notions of trading, the first thing I recommend doing is getting informed.
For this here is our free cryptocurrency blog, ideal for beginners.
The cryptocurrency market is characterized by its accessibility. Besides, it is difficult for it to fall due to the fact that it is backed by the millions of participants who, with their trust, give it life. The liquidation of your BTC investment occurs when you decide to sell your cryptocurrencies to another trader, which you can do through P2P platforms, exchanges or Material Bitcoin.
How to buy bitcoin if you are a beginner?
The best option to buy bitcoin if you are a beginner is to do it from a regulated and trusted site. I recommend our website Material Bitcoin. In addition to buying Bitcoin, you can buy a cold and secure wallet to store your Bitcoins.
Whenever you acquire cryptocurrencies you should always store them in a wallet. The problem with most wallets, such as exchanges, is that they are connected to the internet, exposed to hackers and theft. That’s why I highly recommend a cold, non-electronic, rugged wallet.
This cold wallet is very easy to use and is the most secure wallet on the market right now. It protects your bitcoins against hackers, fire, water and shock.
In short, is it clear now if it is a good time to buy Bitcoin? If your answer is yes, make use of technical and fundamental analysis and store your cryptocurrencies in a good wallet, such as Material Bitcoin.
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