2020 is looking to be a great year for bitcoin and cryptocurrency as a whole. For most people, the right time to invest in crypto is ASAP, or as soon as possible.
The only problem with this approach is that you could be buying at a lower value than intended, and will have to wait until the market stabilizes and when bitcoin appreciates to a new level.
In investor’s terms, there are about three ‘periods’ where investing in bitcoin is a good decision.
Let’s get this straight first before continuing- investing in bitcoin is not just something you’d do for the short term. Investing in bitcoin means you’re buying bitcoin and holding it for a long time.
That said, XTRgate gives you the 3 factors you’d want to get right when putting your money in bitcoin.
Trend reversals are events in which the value of bitcoin has shown a change for the better. Uptrends can clearly be seen when you see a chart of the crypto coin going up in a weekly or monthly basis. The same goes for a downtrend- the arrow slowly goes down not just in a span of days, but weeks.
A reversal is simply a change of direction, whether up or down which doesn’t go away after just a few days. When this happens, sell-offs are losing ‘power’ and buyers can snap up the chance to get bitcoins that have an excellent risk-to-reward ratio.
For those who are unfamiliar with the term ‘halving’, let us explain. Halving is an event where the system has recognized that there have been a total of 210,000 blocks mined. In bitcoin history, halving has already occurred twice- on July 9 2016 and on November 28 2012.
In both instances the block reward for the crypto coin was reduced to half, e.g., 50 to just 25 BTC and from 25 to 12.5 BTC. In case you want to know, the next Halving is estimated to run at May 2, 2020 where the block reward of bitcoin will fall from 12.5 to 6.25 BTC.
In any case, a halving means bitcoin will appreciate in value, maybe even to new heights. As a buyer, you will want to exchange your assets into bitcoin before the next event, i.e., May 2 in order to get more bitcoin for your money.
As investors say, ‘buy low, sell high’ which also applies to the world of cryptocurrency trading. Bitcoin is growing more and more in popularity every day, and so you can expect more people to start mining BTC. Even if you’re in it for the long term, you’ll be able to get a quick boost of morale and excitement the moment you see your bitcoin jump up in value after the halving is reached.
Anytime You Want
In general, any time is a great time to start investing in bitcoin. The total BTC supply is limited to 21 million, but there are already some that have been lost permanently due to lost keys, wallets and passwords within the blockchain. As the supply goes down the demand should go up regardless of time and market conditions.
There are around 7 million bitcoin holders in the world. In a population of 5 billion, the room for growth is immense. If you’ve been putting off investing in bitcoin, then 2020 should be a new beginning for you.
The best time to invest in bitcoin and cryptocurrency is now! You can wait until the halving or when a trend reversal appears, but those strategies are optimized for short-term trading.
The important thing is that you start taking action to acquire crypto commodities and invest in the future.