Investing in Bitcoin has become popular and very trendy in terms of investments. The stock has grown a lot and allows investors to buy partial stock for those who do not or can’t drop $15,000 on one stock. So, many people say Bitcoin is a good investment but is now the right time to buy?
Bitcoin, along with other cryptocurrencies, has gone down in stock market value, which means the price is cheaper. In terms of “buy low sell high”, now would be a good time to buy. Any investor should do research, know the trends of the investment, and feel confident in their investment.
There are a lot of things to learn about before investing in Bitcoin, so let’s go over that as well as when a good time to invest is below. (This is all based on data received in November 2022).
Where can you Buy Bitcoin?
The first thing that you might be wondering is where you can find Bitcoin. Bitcoin is not like food, or toys that you can buy at a store. It is a digital asset and so you need to find somewhere that offers Bitcoin as a product that you can buy, sell, or trade. These places are known as an exchange and are the easiest way for you to buy Bitcoin. We will look at 3 of the largest exchanges here, but keep in mind that there are many other exchanges you could use as well. You can check reliable bitcoin sites from here.
Binance is one of the largest exchanges for cryptocurrencies including Bitcoin. Through their exchange, you can buy and sell Bitcoin with people around the world. For people in the US, Binance offers a specialized exchange, Binance.us. This is similar to their global exchange with the only differences being a smaller number of users and some small changes to ensure users remain within US laws.
To buy Bitcoin on Binance you have a couple of options. You can trade Bitcoin with other users directly either using other forms of crypto or by using standard forms of currency. You may also purchase Bitcoin directly from Binance using a credit or debit card. Keep in mind that purchasing this way will cost you a premium fee that can be as high as 4.5 percent. Your final option is to use wire transfers to pay for Bitcoin directly from your bank account without needing a service fee as a card will.
KuCoin is the second exchange we will talk about here. One big difference with KuCoin is that you can only trade for Bitcoin using other cryptocurrencies. This means that if you plan on buying Bitcoin from KuCoin you need to buy it from the exchange since you cannot buy it from other users using standard currencies.
To buy Bitcoin you will either need a credit card or have downloaded the KuCoin app. Once you have these you can load funds onto your account and use them to buy Bitcoin. KuCoin charges a .1 percent fee on all transactions across the platform which is quite low compared to other crypto exchanges. Users in the US should be aware that they will be limited to $1400 of purchases a day, and will only be able to withdraw 2 Bitcoins from their account per day.
The final exchange we will talk about is Gate.io. Gate.io is interesting because they mainly collect other services and put them together into one exchange. This means that you can find a variety of crypto on Gate.io including Bitcoin. To purchase Bitcoin you will want to log into your account on their website. Once here you can select a purchasing service, input your credit card information, and select how much Bitcoin you would like to purchase.
Gate.io is more difficult to navigate and has more issues than the prior 2 exchanges. The first thing is that since you are using a third-party purchaser the fees for purchasing Bitcoin can vary depending on which you use. The other thing to keep in mind is that you cannot use Gate.io if you live in Canada or the US so if you are a resident of one of these countries you will need to find a different exchange to buy Bitcoin on.
Is Bitcoin a Good Investment?
Investing in Bitcoin is a personal decision, but yes, many people say it is a good investment. But, there are different types of investments, so what type is Bitcoin best for?
Well, Bitcoin is going to be a good long-term investment. So if you continually buy Bitcoin over the years, own partial stock then own entire stocks over time, you should be setting yourself up for a good long-term investment. With the prediction that our lives will become more and more online throughout our lifetimes, Bitcoin and other cryptocurrencies are going to be great investments.
Other investments you can do are short-term investments, as well as new companies and old companies. Investing in these can give you a wide portfolio, which is going to be further explained below. But, what you need to know is that you should not have all your eggs in one basket. If you are new to investing, then do research and figure out what you want to invest in, and learn about dividends and returns.
Owning a stock means you own that percentage of the company. Large stockholders will have a say in the business and are typically on a board of advisors/investors to the company owner, who should own the most stock. Every quarter investors get earnings based on the earnings the company gained in that quarter. If you invest in a company that has been around for many years, then you can see the history and how much they have given to its stockholders, and that can tell you if you will be getting money back on your investment. Older companies are reliable for that reason.
You can also invest in newer companies, which are riskier but with high risk can come high reward, so know you could profit or lose that money, but it is up to you if you want to invest in it. There are also short-term investments which can be just for you to own for about a year to a few years, and you will just wait for it go to up enough, and if you want to pull out while you have gained money you can, but if you think you want to stay invested for the long-term then you can do that too. Having a variety of short-term and long-term investments is a great idea.
Bitcoin falls under that long-term investment idea, and they don’t quite have enough history for you to know if they are a very reliable stock or not. In some years they will have more data to show, but because it is still a newer idea it is deemed a risky investment. And there is truth to the saying “buy low sell high”, so let’s review if that is best in the case of investing in Bitcoin.
When to Buy Bitcoin?
When to buy or invest in Bitcoin is up to you, your financial situation, and what timing works for you. But, if everything is lined up and you want to know when to invest, then here is some information for you.
If you want to invest in something, then one could argue that it is always a good time to buy. It’s like if you want something from the store. You may find it on sale, but you would’ve gotten it anyway. So saving some money in the first place is nice, but it might not change the outcome. That can be said for Bitcoin.
In general, the saying is to buy low and sell high. But, the catch is that it is hard to know when low or high is, or if it will get a little lower or a little higher, and it is also hard to know if your investment now will pay off later. You can see that the market is low now in 2022, but will the market change as soon as it is 2023? It’s hard to know.
But, people think and hope the market will go up in 2023, so if you wanted to buy low and sell high then buying now as the market is lower sounds exactly like what you wanna do. But, if you are willing to buy without the “sale” of the drop in the economy then buying now is just a perk. But buying next year could be just a fine for you if you wanted to wait for any reason.
So really, if you needed the price to drop in order to buy then there is no time like the present, and you should buy now. But those who want to invest either way should just find a convenient time to invest. Ideally buying when prices are lower is best, but perhaps you need to get other things in order before investing, and if you waited a few weeks you might be in a better place, even if stocks are too expensive then. It is all relative to the person and the situation!
Bitcoin Investing Tips
Here are some tips that can be applied generally to any investment, but here are tips for specifically Bitcoin and cryptocurrency.
Do What You Want
Invest if you want to, no one can really tell you for sure yes or nos with your money, so do your own research and invest where you feel confident. You can and should listen to advise from other professionals and large investors, but when it comes to buying stocks it is up to you what you buy and when you buy. So if people are making their advice sound like investing law, they are wrong. You should be smart and knowledgeable about the world of investing, but just because someone said that the best investment is ABC stock doesn’t mean that you should buy ABC stock.
Have a wide variety in your portfolio, long-term, short-term, bitcoins, other companies, newer companies, older companies that have more data and trustworthy returns, etc.
It is Not a Trend, it is an Investment
This cannot be overstated. Just because other people are investing in it, doesn’t mean it is. the best thing for you. Everybody has the same goal, which is to make money. But, if you evaluate a stock and don’t love the idea of buying it, then you don’t have to. Be confident in what you invest in, and don’t ever let peer pressure get you.
Investing in Bitcoin is becoming a trendy stock to invest in because of how many people talk about it and predict it will change the future, but if you don’t want to invest in it no one said you had to. But, you can also do research and find that you really want to invest in it, so there is no harm in that!
Don’t Listen to Peer Pressure
One thing to look out for is peer pressure. Don’t buy just because others are. Do the research and study patterns and history before you buy. Be informed on where to put your money, don’t just let it be in stock without good reason.
That leads me to financial and stock advisors. If you are paying someone to help you invest your money then you should find someone who is going to inform you about where your money is going and why, and who will teach you how to take care of your stocks and what to look for when buying. That way you have a professional starting you off on the right foot in investing, but you will learn about stocks along the way and not need them to take care of it all for you for years.
A great investment option is to partially buy a stock. For instance, Bitcoin is over $15,000 for one stock, and that is a lot of money. So you can instead partially buy the stock and over time you can put more money in it to buy more, and if you get dividends or returns on that stock you can put that earning towards more stock and soon enough you will own a whole Bitcoin stock. Then, you can do that again and again until you own more stocks.
Bull V. Bear Market
If you are going to invest, you need to know what people mean when they say we are in a bull market or a bear market. It will help you know the trends of the market and what people expect the market to do over the course of the next year or so. A bull market means it is going up, which means everybody is happy and getting more money, and a bear market means everything is going down, and it is not a very happy time. But, a bear market is a good time to buy because things are low and hopefully it will return to a bull market and earn you good money! For visuals, look at the photo above.
The reason for the bull and the bear to describe trends in the market is because of how they each attack their opponents. A bull will thrust its horns upwards and a bear swipes down with its claws. So, now you will remember that a bull market is good and goes up, and a bear market is bad and goes down, but there are benefits for a bear market, it is just not as preferred to the bull.
Another thing you should know before investing in Bitcoin or any stock is that the stock market is resilient, especially in America. Historically, the stock market has always gone back up. The stock market was closed for 4 days after 9/11, but one year later stocks were back up to where they were before that event, which was a huge feat. So knowing that the stock market is resilient helps you stay patient when the stock market is down, and it helps you to look forward to the future and not panic in hard times.