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Is It A Good Time To Buy Bitcoin



The cryptocurrency's price has plummeted to $32,000 per coin amid a wider stock market selloff. That's a more than 50% dive from bitcoin's high of above $68,000 per coin in November, according to data from CoinMarketCap.




is it a good time to buy bitcoin



Bitcoin is no stranger to price volatility, evidenced by the fact that just last week, it climbed to $40,000 before falling. Back in 2017, its price hit a high of $20,000 before crashing to below $5,000 the next year. In 2021, its price fell to below $30,000 before surging to November's record high, and seeing a 10% drop in a day is not uncommon for investors with their money in bitcoin and other cryptos, like ether or dogecoin.


If you're looking for an entry point for buying bitcoin, this isn't a bad time, Ouellette says. But it depends on whether you're planning to invest in bitcoin for the long term or looking to buy and sell the speculative asset quickly.


"If you believe in the fundamental use case of cryptocurrency, I don't think that this should necessarily be a spooky time for you," Ouellette says. "But if you're trading short term, then who knows how low we can go in the very short term?"


If the stock market continues to sell off, it's very hard to imagine bitcoin isn't going to go down too. It's possible bitcoin trades below $20,000 in the short term, Ouellette adds. We just don't know.


While there may continue to be short-term pressure in markets due to macro factors, the "attributes that make bitcoin a great long term investment still hold true today," Mauricio Di Bartolomeo, co-founder and chief strategy officer of Ledn, a digital asset financial services company, told Money via email.


"With increasing adoption and banks like Goldman Sachs starting to get involved, the current environment can offer some buying opportunities for investors with long-term conviction," he adds. Goldman Sachs recently offered its first-ever loan backed by bitcoin.


Of course, not everyone is so bullish on crypto due to the risks that come along with such investments. In addition to cryptocurrency's extreme volatility and speculative nature, the lack of regulation around cryptocurrency makes its future very unclear. Fidelity Investments recently came under fire from the U.S. Labor Department and Sens. Elizabeth Warren, D-Mass., and Tina Smith, D- Minn. after announcing it would allow employers to offer bitcoin in 401(k)s.


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In a series of slides prepared by a technical analysis team and sent out to some institutional clients, Goldman included one that said the short-term target for bitcoin (BTC) is $13,971 and that investors should consider buying on any dips in the current scenario.


While crypto is starting to trend upward, volatile highs and lows are nothing new in the crypto markets -- and skeptics have long characterized crypto as an empty bubble destined to burst. Critics have called bitcoin, stablecoins and NFTs simply a new digital version of an old con primed to swindle and scam. But investors see the world of digital coinage as a step forward, a kind of "Money 2.0" that will democratize finance and power the metaverse. Amid the seesawing prices and teetering sentiments, one thing hasn't changed: Cryptocurrency remains controversial, risky and wildly volatile.


In simple terms, cryptocurrency is a digital token, ownership of which is recorded on a blockchain, a distributed software ledger that no one controls. This is designed to make it more secure, in theory. bitcoin and ethereum are the two most widely known cryptocurrencies, but more than 18,000 tokens are traded under different names (dogecoin is one famous example).


From the US government's current policy perspective, you're on your own. At this time, the government provides no deposit protection for crypto as it does for bank accounts. This may change following Biden's March executive order, which directed government agencies to investigate the risks and potential benefits of digital assets.


Whether you're using Coinbase, Binance, Venmo or PayPal, you'll be required to provide some sensitive personal and financial information... including an official form of identification. (So much for bitcoin's reputation for anonymous transactions.)


If you know when to buy Bitcoin, you can get it at a better exchange rate than if you bought it at a different time. Like stocks on the stock market, the value of Bitcoin can change throughout the day.


But because the crypto markets are mainly unregulated and unstable, it has been challenging to get SEC approval. The ProShares Bitcoin Strategy EFT is the first bitcoin-related ETF that trades under the ticker BITO.


In turn, Bitcoin was created, a cryptocurrency with a limited supply of 21 million. According to the basic rule of Economics, the less the supply, the more the demand will rise, meaning, the value of Bitcoin will only increase over time, according to some financial experts.


Essentially, the limit set on the supply of Bitcoin is no longer in the hands of the creator, and all transactions are made a public record for the whole world to see. This way, there can't be any under-the-table deals and shady monetary transactions - a huge deal when deciding on the best time to buy Bitcoins.


Every set number of transactions, a new block is added to the chain, so it keeps growing each time. All transactions are available for the public to access, and the unique codes attached to each transaction make it virtually impossible to fake or fraudulently access them.


Most of the time, these transactions are a waiting game - waiting for the price to fall so you can buy, or waiting for the price to rise so you can sell. Although not everyone is trying to find out when to sell Bitcoin, some people also use Bitcoins as a long-term speculation for a rainy day.


Most people prefer buying during the dip, since they're likely to get a better deal, making it the best time to buy Bitcoins. In order to catch the price dip, I suggest that you keep track of the daily price changes, and read up on predicted patterns that experts suggest. Do keep in mind, though, that no one can TRULY predict the price swings of cryptocurrencies, in general.


Some "experts" would tell you that, according to buying patterns, any time after 3 PM is the best time to buy cryptocurrency. Most people buy during office hours, while fewer people tend to be working later in the day, and might be heading home.


Others will say that, on the other hand, late at night is also the best time of day to buy Bitcoin, since, once again, most people are either asleep, or too tired to be thinking of making big business decisions.


Similarly, there's an idea that the end of the month is not the best time to buy Bitcoin, since this is usually when most people's salaries start rolling in, and they may decide to buy. So, what's the resolution here? Well, it's that there really is no specific best time of day to buy cryptocurrency - while some things might be true for specific days, they could flip completely on others.


Bitcoin went through a stagnant patch during 2023, with prices remaining low for a few months (by some accounts, making it the best time to buy Bitcoins) until they sky-rocketed again towards the latter half of the year. As the world shifts to learning about cryptocurrencies, and more brands start to accept them as a legitimate form of payment, the trends seem to be positive.


Uncertainty also makes the trends harder to follow or predict. With such a volatile pattern to follow, some researchers suggest that the best time to buy cryptocurrency is whenever you have the capital, and whenever you need money is when to sell bitcoin. However, evidently, while you should be aware of such a method of going about it, you should also note that it's not the advisable strategy - far from it.


Like we previously mentioned, following the trend game is for the day traders who are on the hunt for when to sell Bitcoin. They are focused on their day-to-day gain, and aren't looking to hold an asset long-term. While that may work well in some cases, before you conclude on the best time to buy Bitcoins, you should keep in mind that, for the majority of the population, day trading isn't going to be "the way to go".


Whether you're in it for the long haul, or are looking to make a quick buck, you should always go in with a game plan. You never want to rely on what your peers are doing, and take their word for when is the best time to buy Bitcoins.


Firstly, I suggest you take account of the liquid assets that you have lying around to reinvest in Bitcoins. A quick analysis will give you a good idea if now is the best time of day to buy cryptocurrency, or maybe the best time to buy Bitcoins will arise later.


Most people prefer the DCA, or the ''Dollar Cost Averaging'' method, where you purchase an asset at specific time periods, for a specific amount of money. This way works best with the volatile price trend of Bitcoin, which can get hard to maneuver. Admittedly, any time can be the best time to buy Bitcoins if you split your money up into different parts.


A crypto exchange essentially serves as your bank for cryptos, where you can buy, find out when to sell Bitcoin, and even learn about the best time of day to buy cryptocurrency. Of course, you need to provide proof of identity and some other, additional information.


Not to forget that not every country even accepts Bitcoin, so if you don't want legal trouble with the government, it isn't the best time to buy Bitcoins. You need to ensure that Bitcoin aligns with your country's laws and regulations, and learn if you're even allowed to do so at all. 041b061a72


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