Best Time To Buy Cryptocurrency 2021 – Cryptocurrencies such as Bitcoin can experience daily (or even hourly) price fluctuations. Like any other type of investment, volatility can lead to uncertainty, fear of missing out, or fear of participation. When prices fluctuate, how do you know when to buy?

In an ideal world, it’s simple: buy low, sell high. Actually, this is easier said than done, even for professionals. Instead of trying to “time the market,” many investors use a technique called dollar cost averaging (or “DCA”) to reduce market volatility by investing less in assets such as cryptocurrencies, stocks, or gold. according to the regular schedule.

Best Time To Buy Cryptocurrency 2021

A DCA may be the right choice when someone believes that their investment will grow (or grow) over time, and face price volatility until then.

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DCA is a long-term strategy where an investor buys assets regularly over time, regardless of price (for example, investing $100 a month in Bitcoin over the course of a year instead of $1,200 all at once). . Their DCA process can change over time and – depending on their goals – last for months or years.

While DCA is the most popular way to buy Bitcoin, it’s not the only way to trade crypto—investors have been using this method for years to offset market volatility. You can already use DCA if you use your employer’s pension scheme every day.

DCA can be a great way to own cryptocurrencies without the stress of predicting market timing or the risk of unknowingly using all of your money to make more “single currency” investments.

The main thing is to choose a cheap investment and sell it every time, regardless of the price of the stock. This can ‘depreciate’ the cost of purchases over time and reduce the sudden drop in prices for each purchase. And if prices fall, DCA investors can continue to buy as planned, with the opportunity to profit when prices recover.

Exploring The Post Crash Cryptocurrency Market

A DCA can help an issuer enter the market, take advantage of long-term price increases and reduce the risk of short-term price declines. And in situations like the one below, it can lead to more predictable returns than investing a lot of money at once:

Of course, the success of any DCA strategy still depends on market conditions. To demonstrate this, let’s go into an example using real prices, as they approached the biggest drop in Bitcoin to date. If you had invested $100 in Bitcoin every week since December 18, 2017 (near the price peak that year), you would have invested $16,300. But on January 25, 2021, your balance will be around $65,000. Earn over 299% returns.

Conversely, going all in with high prices often seems like a bad idea – but how do you know? If you had taken the same amount of $16,300 on December 18, 2017, you would have lost about $8,000 in the first two years. Even if your profile recovers, in the meantime you may lose the opportunity to increase your profits (and possibly the fear of accidentally selling your Bitcoin).

Now let’s say you waited a year and invested $200 in Bitcoin every month from December 2018 to December 2020. In this case, your portfolio would be worth more than $13,000 in 2020, compared to $23,000 from most investments. These “all-in-one” funds can bring you great profits,  but they can also be very risky: any change in prices after the first day of investment can affect your entire investment.

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Reducing the value of the dollar requires hedging your bets: reducing your size to minimize potential losses. A safer option for investors, it reduces the chance of a big shock to your portfolio due to temporary price fluctuations.

To understand if DCA is the right option for you, it is important to consider your financial situation. It is always a good idea to consult a financial professional before starting a new investment strategy.

Top Tips What is Dollar Cost Averaging (DCA)? Timeline What is a bull or bear market? Key words What is volatility? Every market participant tries to predict the cryptocurrency price movement and earn hundreds from it. Stop and think about how many times in the past week/month you have tried to predict or guess the movement of Bitcoin. I’m sure it was a dozen or hundreds of times.

In this article, we will analyze all these questions and show real cases of how to find the lowest points of the cryptocurrency market using indicators.

The Best Time To Invest In Cryptocurrency

A question that thousands of businessmen and professionals are trying to find an answer to. I personally can say with certainty that it is possible. And the main way this can be achieved is through statistical and market processes. Don’t be surprised by the words in the last sentence, it’s easier than it looks. To prove this, let’s go to the real thing.

The first thing to know is that all markets are cyclical. And the Bitcoin system is a great example of this. Above I have added a logarithmic chart of Bitcoin over the last 12 years (Bitcoin Complete History). Even if you don’t have enough experience in trading and investing, you can understand what is going on and how it works from the above website.

With such analysis and data we have: insight, other statistics and market trends. With the help of such simple information, we can already develop our sales or marketing strategies. A simple example: by calculation, we know that every time the cryptocurrency market drops by 80% it is the best opportunity to buy cryptocurrencies. Based on such statistical probabilities, we can make predictions about future prices.

Below are 5 simple examples of how to find the bottom of the cryptocurrency market. I know that almost half of the readers want to know where to buy altcoins. Since 99% of all currencies are completely compatible with Bitcoin, all the proposed methods will be compatible with almost all cryptocurrencies. So, if it’s a good time to buy Bitcoin, then it’s a good time to buy altcoins.

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The first method – a simple but effective method, buying cryptocurrency after a drop of 70-80%. Every cryptocurrency market cycle is known to be over after an 80% drop. And it was after the fall that the best time to buy cryptocurrency came. If you use this method, we recommend using the DCA method. This will help you get a good price to buy almost below the market.

Another option is to use the 200 moving average (MA) for the weekly period. It is known that value always returns to value. In terms of the cryptocurrency market, the price has returned to its 200-week moving average. Currently, the average $200 weekly move is $22,000. $22k and anything below is a great opportunity to buy bitcoin. With the DCA method you can get a better purchase price. You can find these and other indicators on the TradingView platform.

The third way – liquidation. During a major drop in prices, many market participants liquidate open credit positions or sell cryptocurrencies at a loss. Such periods are often called the bear market. A bull market is the best time to buy digital currencies. To determine such times, we can use the indicator of normal volume, because there is a high volume of trading in the market.

The fourth method is to determine the range of the market’s lows and highs using the Relative Strength Index (RSI). The RSI indicator identifies oversold and overbought areas of the market. If we switch to the monthly time frame and turn on the RSI indicator, we can see an interesting pattern. Every time the relative strength reached 44 on its scale, it was the lowest sign for the cryptocurrency market. Conversely, when the indicator reached 92, it was a good opportunity to sell.

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The fifth method – logarithmic regression. Another good way to determine the ups and downs of the market. If you examine the chart below, you will see that the lower area was a good buying opportunity and the upper area was a good indicator area to take profits and save for future declines. By using this method with the DCA method, you can get an opportunity to buy approx.

If you don’t have your own trading plan, the strategies provided will be the best guide to understanding the dynamics of the market and

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