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Unsure About When to Buy Bitcoins? Read This

By March 1, 2018 No Comments

If you are following the news, you must be aware of the dream run that Bitcoin is having of late. The recent surge in Bitcoin price is an irresistible temptation for investors, who want to be a part of this incredible journey.
Since the value of Bitcoin is currently at an all-time high, many are wondering if it is the right time to enter the market. Surely so, because Bitcoin is highly volatile, and its severe price drops certainly carry the risk of eroding the entire money that you have put in over the years. Although this is correct to some extent, it is also true that these drastic dips, in reality, create perfect price points to get into the market for safe, long-term gains.
The ‘timing’ in any trade, without a doubt, is crucially important. However, when it comes to Bitcoins, it is your investment attitude that equally matters along with the timing.
First things first. You have to realize that Bitcoin is a form of solid money, and not a get-rich-quick Ponzi scheme, therefore, investing in Bitcoins is not about chasing short-term fast returns. Serious adopters of Bitcoin do not enter the market to be a millionaire overnight, and you as a responsible investor should drop the ‘millionaire mindset’ as well before you actually start accumulating Bitcoins. Honestly, the fact is, there is nothing like the ‘best time’ or the ‘right time’ to invest in Bitcoins, but there are specific trading strategies that will enable you to see a steady growth of your Bitcoin investments irrespective of when you get in.
Interestingly, it is not about ‘when’, rather ‘where’, as in, at which price levels you should enter the market. ‘Buying the dips’ is a common phenomenon you will find in almost every article you come across about when to buy Bitcoins, so, we won’t get into that, instead, we will discuss more critical issues that will make you a seasoned Bitcoin investor in a short period of time.
Where Should You Start Buying Bitcoins?
In the last quarter of 2015, the price of Bitcoin broke above the 200-day EMA. EMA is basically an exponential moving average, which, as opposed to a simple moving average, gives additional weightage to recent data that makes it respond faster to latest price changes. Since the end of 2015, Bitcoin has seen five significant dips below the 200-day EMA, which proved to be great long-term buying opportunities. Currently, the 200-day EMA is positioned around $8898. It is firmly believed that a revisit of this price level can turn out to be an attractive opportunity to enter the market.
However, at this level, it is important to observe whether or not the price is holding for at least 4 hours. If it does, you can put in 25 percent of your total allocation at around $8900 levels. The stop loss for this buy should be kept at $7400. This is crucial. Subsequently, to strengthen your position, you can invest 10 to 15 percent of your available funds whenever the coin tanks 40 to 50 percent of its value to come around $8900 to $9000 levels.
What Are the Support Levels?
As mentioned above, anywhere between $8900 and $9000 should be strong support points. Zone wise, $8600 to $9200 can be a solid support zone. Watch the market carefully at these levels. In case the price breakdowns and sustains below the 200-day EMA for three consecutive days, it is an indication of weak buyer sentiment. The next downside pullback can offer support levels between $7500 and $7800. If the coin price slumps below $7400 and stays there, it would be prudent to wait and see until the price recovers and goes past the 8900-dollar-mark. Don’t panic. Long positions can be initiated again, once this position is achieved.
Cost Averaging
Cost averaging is a great buying strategy that is similar to SIPs (Systematic Investment Plan) in mutual funds. Here, you systemically keep aside a certain amount of money to purchase Bitcoins with it every month. This averages your buying positions by allowing you to participate in various market scenarios, both upside, and downside, which lessens the overall risk of your investment portfolio. Purchasing Bitcoins with a fixed amount of money at different points in time will ensure high returns in the long-term.
You can instantly start buying Bitcoins through any Bitcoin exchange platform operating in the market. There are many options you can choose from, however, it is advisable to register your account only with a trusted Bitcoin exchange platform, such as Belfrics, which has over the time earned the reputation of serving clients with state-of-the-art tools and end-to-end security. Cash or crypto, it’s your money after all! So be extra cautious while selecting the exchange platform.

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