Recently, cryptocurrency values have plummeted. As of this writing, the price of Bitcoin is $45,859.06 (Rs.7,706,179.37), having dropped by over half since mid-April. Ether (ETH) is currently trading at $3,394.30 (Rs.570,379.87), while Dogecoin (DOGE) is trading at $2.47 (Rs.415.06), down a stunning 73 percent from its May peak.
However, potential investors perceive this volatility as an opportunity to earn quick returns.
Investing in a unit at a cheap price and expecting it to rise in the future is considered a good investment approach by some. However, it’s not as easy as it seems.
When is the best time to buy cryptocurrency?
Is there a good time to buy cryptocurrency? As long as you’re strategic, it doesn’t matter. If, on the other hand, your goal is long-term gains, you may want to consider buying during a dip and keeping it until you make a profit.
The price of Bitcoin doesn’t matter to you as long as you believe that bitcoin has a bright future and will transform the world. Whatever happens, you’ll make a lot of money if it ever reaches, say, $100,000.
The success of Bitcoin or any other cryptocurrency cannot be guaranteed, of course. You should only invest if you believe in its potential and are prepared to hold on to your money for years or perhaps decades. Only investing to make a quick buck is risky and will certainly result in you losing more money than you earn in the long run.
Dollar-cost averaging is another method of reducing price volatility. A phased investment is possible. — instance, $500 every three months, or $300 every month. As a result, you’ll have a better idea of where the value is headed over the course of a long time.
When prices are high, you may be tempted to buy. Other times, however, you’ll invest when the market is down. They should eventually average out. In addition, you won’t have to worry about buying at the perfect time.
Be sure to retain a long-term attitude when investing, regardless of when you decide to do so. It’s impossible to predict whether cryptocurrencies will flourish or not, but if it does, you’ll be able to optimize your profits by keeping your assets for the long haul.
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