Bitcoin News

Thinking Of Buying Bitcoin? Know When To Buy Bitcoin

Thinking Of Buying Bitcoin

Regulation of fiat currency by the government, geographical restrictions, and security risks have made the world think of an alternative. Overcoming these persistent issues was the basis of Bitcoin’s origin. It was built on decentralized architecture based on revolutionary blockchain technology. By establishing a peer-to-peer payment network and using cryptographic keys, Bitcoin does away with the need of any regulatory body and ensures secure transactions.

Bitcoin is a value-driven asset, and its value is based on speculations. Unlike fiat currencies, Bitcoin is limited (21 million), and so is a deflationary currency. However, it is designed to work as a real-world currency. Anyone can buy or sell it and use it as a tradable asset or a payment method. In doing so, they do not need to rely on any third-party financial services providers like banks.

Bitcoin works beyond physical boundaries and is suitable for making international payments. Transactions made in Bitcoin are instant, secure, and anonymous. Despite being highly profitable, one might ask out of curiosity when they should buy it. The purpose of this post is to help you with your decision to purchase Bitcoin.

What Is The Best Time To Buy Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization and holds the highest value among all. Bitcoin prices benefit from economic instability caused by uncontrollable situations like the coronavirus pandemic. Even though Bitcoin price has picked up the pace in the past two years, it keeps changing every second, making it highly predictable at the same time. So, there is no such best time to buy Bitcoin. It can be implied by a little bit of historical market research, but it will not guarantee that the future will follow suit. However, there are a few theories proposed to estimate the price behavior of Bitcoin.

For example, Yale University economists Aleh Tsyvinski and Yukun Liu have developed a Bitcoin price-prediction model based on the analysis of Bitcoin prices in the last seven years. Tsyvinski and Liu found the factors affecting the Bitcoin prices different than those observed in the case of traditional assets. They also observed that any changes in the Bitcoin price, especially the positive ones, were momentary. While concluding their research, the economists recommended the ideal time for buying Bitcoin is when there is over 20% appreciation in its value in a week.

What Is The Best Day To Buy Cryptocurrency?

Buying and trading Bitcoin is relatively convenient compared to stocks and commodities. First, there are no fixed operating hours or trading sessions, and second, it can be done at the fingerprints. Mondays and Sundays can be seen as the best days of the week to buy Bitcoin based on the analyses of daily Bitcoin trading volume, investor activity, and Bitcoin prices.

  • Mondays On these days, Bitcoin prices fall as a result of a decrease in the demand for cryptocurrency on the weekends.
  • Sundays – Bitcoin trading volumes tend to increase on Sundays. These are the days when the investors purchase Bitcoin for making transactions at the start of the week.

Avoid purchasing Bitcoin on Fridays, Saturdays, and during paydays. By paydays, we mean the middle of the month or the end of the month, when salaries are paid. With more money in hand, it is highly likely for people to invest in Bitcoin. It leads to an increase in the demand for cryptocurrency, ultimately causing Bitcoin prices to go up.

What Experts Say About Buying Bitcoin? Is It Too Late To Buy Bitcoin?

Because of the volatile nature of Bitcoin, experts are split over whether investors should buy it. The most common concerns expressed include the Bitcoin bubble, lack of regulation, and fraudulent trading platforms.

Among those who consider Bitcoin a risky investment is CNBC contributor James Ledbetter, who believes that a sudden price rise is the biggest enemy of Bitcoin. Ledbetter cited the 2017 and 2018 events when Bitcoin value plummeted after a surge. Likewise, Rosenberg Research’s chief economist David Rosenberg blames the Bitcoin bubble for its fearful future.

Bitcoin investor Anthony Pompliano offers a safer approach to avoid losses. He suggests buying Bitcoin for as little as $5 and holding it for the long-term. Pompliano also writes off any possibility of hacking Bitcoin transactions due to the blockchain digital ledger. The Wall Street Journal markets reporter Paul Vigna echoes with Pompliano.

Despite being a hedging option against inflation, investors must be prepared for positive and negative consequences.

Bottom Line

Bitcoin provides solutions to flaws in the conventional fiat currency-based payment system. On top of that, the soaring prices and increasing adoption of Bitcoin as a payment method make it a viable investment. With that said, uncertainty in Bitcoin prices makes it next to impossible, even for experts, to decode the right time to buy Bitcoin. Considering the factors we mentioned, in combination with expert views and the best crypto trading days, you can make an informed decision when buying Bitcoin. Apart from that, You can buy Bitcoin through the most innovative platform called – Bitcoin Circuit. It is an automated trading platform which helps you to make good money from Bitcoin trading. Read out the most authentic Bitcoin Circuit Review to get the detailed information about this innovative platform.

Related posts

Why Is Bitcoin Valuable?

Kenneth Nichols

Is Bitcoin Going to Hit $1 Million?

Joyce Novak

Bitcoin Hashrate in China Falls by Nearly 20% Due To Heavy Floods

Kenneth Nichols

Leave a Comment