A large part of this market is maintained thanks to the speculative market and to stay in this market we have to know when to invest in Bitcoin and crypto currencies, logically with the intention of making economic profits with the investments that are made within this crypto world.
But why do you make money investing in Bitcoin and crypto currencies? These assets do not generate interest, nor are they assets that are tied to the productivity of a company or a commodity. Crypto currencies are merely speculative goods that are acquired with the only expectation that another person in the future will pay more for obtaining that same good.
Why is it believed that Bitcoin and some other crypto currencies will be worth more in the future? Well, about these coins there is hope for what their future use will be. The technology behind these coins, the Blockchain, represents a breakthrough that could radically change transactions as we know them today.
The time to invest in Bitcoin
Given this expectation, many have decided to invest in Bitcoin in order to make profits when the currency has a higher demand and thus a higher economic value. However, the path of Bitcoin and cryptomedas in general has not always been ascending, its price has had very important falls and has shown that it is a highly volatile asset with significant ups and downs.
This reality has generated that knowing when to invest in Bitcoin is an exercise that many experts and specialists of the market go day by day. Although there is no specific way to know when to invest in Bitcoin, they have been set out some guidelines that may be very useful to recognize the best time to invest.
Don’t invest after a significant fall
Although this is a debated advice that some investment analysts reject, in the crypto world it is accepted due to the volatility of the market and the type of investors that are within this field.
What does the type of investors have to do with this advice? Simply put, Bitcoin and crypto currencies are assets that have been “democratized” that is, they are not only in the hands of large investment funds but they have achieved a different status of independence, they are among ordinary people within the market.
The issue with “democratized” assets is that they are more susceptible to change when there is panic in the market and that means that when there is a fall in prices, everyone wants to sell and get out of that investment. Many investors think that they are making a good investment in Bitcoin in the middle of a crash and decide to invest, however sometimes they may regret about it, because the price does not rise and simply continues to fall. It is advisable to invest when there is a certain calm in the market.
Invest according to the advances and news you see about Bitcoin and the crypto currencies.
Fundamental analysis is imperative within this market. This type of analysis will require us to be very attentive to all movements that affect the commercial utility of Bitcoin and crypto currencies in general.
For example, a hypothetical news indicating that General Motors will begin to accept Bitcoin as a form of payment in its dealerships for vehicles distributed around the world would positively impact the price of Bitcoin since it would give the currency a commercial utility that previously did not have.
Elsewhere, we can also see a hypothetical news that indicates that a government such as the United States will consider Bitcoin and illegal crypto currencies within its territory. Such news will negatively affect the price of the asset since it will limit its commercial utility.
In conclusion, if we want to know when to invest in Bitcoin and in the crypto currencies we must be very attentive to the news that arise around these assets. News related to the creation of legislation favorable to the use of crypto coins, virtual currency alliances with large companies consolidated in the commercial world or new strategies that make the use of crypto coins easier for the population, they are facts that will positively affect the price of the currency in the future and invites us to invest.
Analysis of charts
According to experts, economics is a cyclical science, that is, its facts are repetitive over time. Under this belief, graphics analyses are born, with the objective of obtaining patterns and trying to guess the future of the assets.
Hundreds of graph and bar analyses are done on Bitcoin every day, which allow for greater clarity on the asset’s behaviour and, although it is a very erratic and volatile asset, many investors have been able to anticipate Bitcoin’s behaviour thanks to these analyses.
The analysis of charts can help us both to know when to invest in Bitcoin as well as to know when we should leave this asset and that thanks to the analysis of these movements you can glimpse the will of the market on the asset.
It is recommended that each investor learn to analyze the charts, bars and candles that are raised on the Bitcoin and crypto currencies. If you can’t learn how to do those analyses, you can turn to the experts who are dedicated to doing studies and presenting the analyses to the public.
These analyses are important because they allow us to determine a benchmark on which is the best level to enter the market by buying the asset. This analysis, together with the fundamental analysis, allows one to invest with knowledge in Bitcoin or in any other cryptomone that one wants to invest.
These tips do not work as absolute rules and are just tips that aim to give more security to the investor than to decide the best time to enter the world of crypto currencies. Knowing the ideal time to invest in Bitcoin is important, but it is not the only element we should value.
It is important that we study beforehand the amount of money that we will destine to each investment as well as what route we will use to enter the market. Buying Bitcoin directly, acquiring mining equipment or investing in an ICO, are just some of the ways in which we can enter the fabulous world of cryptomedas.