Bitcoin is a popular major cryptocurrency launched back in 2009. Since then, it has maintained its good performance and has always been the market leader. Did you know that it has totally worth effectively hit an all-time high of $381 billion in market cap in December 2020? So, naturally the next question that comes to your mind is “Should I buy Bitcoin today”? Let us find out in this article.
Should I buy Bitcoin Today?
Many investors across the world are playing their cards right and they are making a large profit out of this investment. When it is a bit dull then that is the right time to buy Bitcoins. For new investors who buy small regular chunks of crypto, this is the best time. This is because these investors believe that Bitcoin has a great long-term future.
Best Crypto Exchanges to Buy Bitcoin in the US
We will list only the best exchanges that work best for most traders as well as those within each type of exchange. When investing in Bitcoin, it is advisable that you learn more about how these exchanges differ as well as how you can make good use of them to earn more profit.
4. Bisq: Best Decentralized Exchange
If you are from outside of the US, then https://www.binance.com/ is the best exchange to sign up for.
Does Bitcoin Have More Upside After Crossing 2017 All-Time High?
Bitcoin hit a new all-time high in late 2020. Analysts believe that this is because of the COVID-19 pandemic. How much can I buy bitcoin for today? The new high took bitcoin’s market cap to $384 billion.
The first time that bitcoin bested was back in December 2017 peak. That was in November of $19,800. This time round the surge is a bit surprising and we believe that the $20,000 is a major resistance level.
Most exchanges attest that this is the first time Bitcoin is hitting the $20,000 mark. Keep in mind that unlike stocks, you can buy cryptocurrencies and trade them on varieties of exchanges. Moreover, the exchanges also vary in prices as quite a number of them only give a blended average of market prices from multiple exchanges. Should I buy cryptocurrency today? It all depends on the market’s findings.
What is driving the surge is the institutional interest where firms are now allocating a small amount of their collection to Bitcoin. The same trend is evident in a handful of influential investors. Moreover, today, major consumer-facing payments companies are now buying Bitcoin using PayPal as well as Square.
Should You Bitcoin Right Now?
Should I buy or sell bitcoin today? This is the question that most investors are now asking themselves. According to market research, we have positive sentiments surrounding Bitcoin right now. Did you know that investors now compare bitcoin to gold as a potential store of value? What is making it even more interesting is the fact that you cannot hyperinflate Bitcoin.
Institutional Investors Pouring Investment into Bitcoin
Most people thought that Bitcoin is all a fraud. Many people lost interest in Bitcoin. But, Bitcoin has picked up, and now it is leading the cryptocurrency market.
Today, the institutional investment of Bitcoin is showing trust in digital assets. Many corporations are opting to invest a percentage of their liquid assets into cryptocurrency. They normally forge the path for other high net worth individuals as well as smaller businesses.
Now that there are more people investing in Bitcoin as they use cryptocurrencies in all their transactions, the value of Bitcoin will increase. We value the cryptocurrency market by supply as well as demand. When the demand rises and the supply is stable, the Bitcoin price will also go high.
Did you know that the adoption of institutional investors is the driving force for the mass adoption of cryptocurrency? This will attract smaller retail investors as well as individuals to start FOMOing.
Keep in mind that cryptocurrencies and decentralized finance do not offer financial tools as well as services to anyone who can access internet connection. Through this, a fishmonger from Africa will enjoy the same financial availability as a Wall Street banker.
Public Companies Converting Cash Reserves to Bitcoin
Just a few months ago, Microstrategy Inc. announced that they bought $425 million bitcoin. This move played a significant role in institutional approval. Today, investors are now viewing crypto credentials as safe-haven as well as a mature asset. This was the best move and now major global companies are looking into holding bitcoin as part of corporate strategy.
1. Microstrategy Inc
2. Grayscale Bitcoin Trust
3. Square Inc.
In the past, no bank wanted to associate with Bitcoin. Today, they are softening their stance on cryptocurrency and as a result, they are now offering digital asset services to their customers.
Did you know that the Puerto Rico Office of Commissioner of Financial Institutions now allows FV Bank to provide custodial services for digital assets such as Bitcoin?
PayPal Goes All In On Bitcoin and Crypto
Should I buy Bitcoin right now? Now that Paypal has entered the cryptocurrency market, buying Bitcoin has never been this easy. You can now buy and pay with Bitcoin through Paypal. This is what is behind bitcoin and Paypal shares’ surging.
Bitcoin Stock to Flow Chart
Any Bitcoin investor who is asking himself or herself if it is the right time to buy Bitcoin should learn more about the ‘Bitcoin Stock to flow chart’. This chart simply shows how many years, at the recent production rate, you require to achieve the current stock. The higher the number, the higher the Bitcoin price.
Bitcoin Rainbow Price Chart
It is also vital to learn more about Bitcoin Rainbow Chart. This is a logarithmic chart of the evolution of Bitcoin price that employs colored bands. You can always access it at any time on blockchaincenter.net. The bands are random and you need a scientific basis to get the chart right.
“Buy low, sell high” is the current talk in the cryptocurrency market. Most people claim that it is the best strategy for making money. Even though it sounds simple, practicing successfully needs many other strategies.
– There is the tendency of the market to overshoot on both upside and downside.
– The pure herd instinct that influences stock prices
An investor who is willing to analyze the market carefully especially regarding how the herd instinct works and is able to take advantage of the extreme challenges that it causes can go ahead and buy low and sell high.
Did you know that prices both affect as well as reflect the psychology of the market participants? This makes it difficult to know when the prices are too low as well as too high. No wonder “buy low, sell high” might not work consistently. A trader must therefore look into other factors such as consumer sentiment, moving averages as well as business cycles.
Buy Low and Hodl Crypto
Many other investors are also into buy low and hodl strategy. They would buy cryptocurrencies and hold them until they feel like it is the right time to sell. It is not as simple as many people would think. You have to do a little technical analysis before you enter and exit a trade. Learn from Bitcoin Whales who transfer huge sum of Bitcoin money for a few dollars.
Buy-and-Hold Tips for Trading Cryptocurrencies
- Use larger time frames for technical analysis such as monthly, weekly as well as daily charts
- Do not use leverage
- Avoid placing it too close to your entry especially when using stop losses
- Keep yourself posted on the fundamental factors that influence the long-term of your cryptocurrencies.
- Take advantage of pullbacks for a better entry price
Frequently Asked Questions
1. Is It The Right Time To Buy Bitcoin Today?
Is it safe to buy Bitcoin today? You can always buy stocks when the market is numb and dull. Buy only when you know that Bitcoin has a great long-term future.
2. Is Bitcoin Worth Investing In 2021?
Yes, but you need to buy as much bitcoin and do not sell it off cheaply to fear, uncertainty and doubt (FUD). It is the largest cryptocurrency by market capitalization that all institutions are vying to hold as part of their corporate portfolio.
3. Should I Buy Bitcoins Right Now?
Yes, the train is already leaving. The best time to buy bitcoin is right now. Don’t keep waiting and miss the opportunity to get rich altogether.
Takeaway – Should I Buy Bitcoins Right Now?
1. When it is a bit dull then that is the right time to buy Bitcoins. For new investors who buy small regular chunks of crypto, this is the best time. This is because these investors believe that Bitcoin has a great long-term future.
2. Use larger periods for technical analysis such as monthly, weekly as well as daily charts when using buy and hodl strategy
3. Bitcoin hit a new all-time high in late 2020. Analysts believe that this is because of the COVID-19 pandemic. This new high took bitcoin’s market cap to $384 billion
4. Paypal has entered the cryptocurrency market; buying Bitcoin has never been this easy. You can now buy and pay with Bitcoin through Paypal. This is what is behind bitcoin and PayPal shares’ surging
5. You can get instant bitcoin loan and further rehypothecate and invest into cryptocurrencies
6. Understand the price dynamics of Bitcoin to make much more profit
I am a data analyst by profession who loves to crunch numbers at daytime and come home wondering how my passive income numbers for the day look like. I believe in being rich rather than looking rich. Follow me for Cryptocurrency, FIRE, Personal Finance, Credit Cards and Digital Nomad updates