Is today a good time to buy bitcoin

As Bitcoin continues to have an amazing bull run in , the question on everyone's mind is whether this is the right time to buy. "Hey Jean, do.
Table of contents

• Will Bitcoin touch $100K in 2021? Here’s why you should invest now
• Should You Buy Gold Or Bitcoin?
• How to Buy Bitcoin
• Weighing risk and reward

Bitcoin was intended to serve as a means of facilitating the transfer of money in a decentralized way beyond the influence of governments and central banks — and that in time it would spread as a means of retail payment. In a world where trust in institutions has been challenged since the global financial crisis, bitcoin has appealed to some as an alternative system of exchange.

It also seems to me that many people are increasingly happy with bitcoin being assigned this role, and much of the interest and eco-system that is developing around it underpins the role of bitcoin as a speculative asset rather than as a bona fide currency. In particular, more banks and payment systems — notably PayPal PYPL — are allowing bitcoin onto their platforms, either in the sense that it can be used to buy other assets or that it can be traded. At the same time, many of the highly dubious coin issues of recent years have been shut down by regulators, principally in the USA, though bitcoin remains a favourite means of transacting in the underworld.

More hedge funds that specialize in crypto currencies are on the rise, and crypto exchanges are readily attracting investment funding Baakt the digital marketplace has recently announced a plan to go public through a special acquisition vehicle. If the role of bitcoin and crypto-currencies as a trading asset eco-system is growing, its role as a currency or means of exchange is being curtailed — indeed the price moves of the past three months would make it very difficult to operate as a reliable means of payment in addition the verifiability of payments may be harder to complete than some think according to the Bank for International Settlements.

Moreover, the entry points to the crypto currency world are under attack — either in the case of exchanges being hacked or closed down by governments nearly 80 crypto exchanges ceased to exist through , or in governments looking to identify and tax those putting capital into or taking it out of crypo currencies.

In particular central banks, many of whom are close to launching their own digital currencies conceptually at least have an interest in the failure of cryptocurrencies to catch on. In time central bankers and regulators may also focus on the very uneven liquidity in the bitcoin trading network, and in particular the role of a crypto coin called Tether apparently backed by dollar cash holdings in fuelling purchases of bitcoin.

As such, this points to crypto currencies being ushered into the corner of eclectic trading assets — though less of an experience than horse racing, with none of the aesthetic bonus of art and not quite the fun of collecting wine. To draw these strands together in a way that is relevant for investors — what is happening is that as the economic and social utility of bitcoin is falling i.

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• Is Now the Right Time to Buy Bitcoin? | Finance Magnates.

So, if bitcoin is fast becoming a trading asset, should one buy it now? A manifestation of this that crypto currencies are highly correlated, making diversification difficult. In this respect bitcoin is at the very risky end of market risk appetite and increasingly equity market investors use it as one of a number of steers for the direction of equities.

In this context, for most investors, it is best to wait for a drop in risk appetite — and for a degree of panic to return to markets, or for liquidity conditions tightened. The last time we saw depressed risk appetite was in late September, when bitcoin traded below the 10, level.

As it stands, risk appetite is very high and due a reversal in coming weeks, so now is not the time to jump into bitcoin. I am the author of a book called The Levelling which points to what's next after globalization and puts forward constructive ideas as to how an increasingly fractured. I am the author of a book called The Levelling which points to what's next after globalization and puts forward constructive ideas as to how an increasingly fractured world can develop in a positive and constructive way.

The book mixes economics, history, politics, finance and geopolitics. Markets are the best place to watch and test the way the world evolves. We believe a few well-informed pointers that will help you make the final decision is the best that we or anyone can give you. So here are a few things to consider in determining the best time to invest your money in Bitcoin.

Weighing risk and reward

This might sound like something from the textbook but really, the best answer anyone can give you on the subject is to suggest you to educate yourself. Buying Bitcoin is similar to any other asset trading, and what works there works here too. One of the most important things you must go for as an investor is understanding what you trade in.

Before buying Bitcoin, commit yourself to learning the ropes and understanding the market. That is by far the best way to know when it is worth buying or selling your coins. Apart from being able to defend yourself from the many critiques of the Bitcoin trade, learning more about it yourself will save you the headaches of running after analysts and self-professed market watchers with their inaccurate data. When you learn to read the charts by yourself, it will help you solve the issue of knowing the best time once and for all.

There are a number of materials, books and videos available for you to acquire real and accurate guidance for beginners. In a world where everything has become digital, it is a great idea to leverage on technology. One of the great ways to understand market charts and projections is to make use of apps and software. They make it easy to track market changes and pick the perfect time to throw it all in.

Buying Bitcoin and making gains from it is all about strategizing and planning. Most of the times making a decision to buy is dependent on the kind of buying strategy that you feel works best for you.

Do you want to buy and hold or buy on the dip? It is important you understand these strategies and know how to make them work for you. This is a very popular strategy not just in the world of Bitcoin trading but in the general business world out there. The idea of buying and holding, also popularly referred to as HODL, is a long-term buying strategy where you buy Bitcoin in hopes that it will appreciate in value over time. Employing this strategy is all about gathering much information about the market to educate yourself. This then helps you determine your own opinion when you want to put in your money based on what you feel will happen to the currency.

Many experts claim that a good mindset to have when using the buy-and-hold strategy is to invest just the right amount of money, the one you could lose in case of eventualities. This is another interesting approach you can take to buying Bitcoin.

Given the volatility of Bitcoin , it is almost inevitable that prices will fall at some point. The strategy here is to take advantage of this fall in prices and make your purchases.