The Ultimate Guide to How and When to Buy Bitcoin in 2021
Deciding on the best time to buy Bitcoin in 2021 is particularly difficult, since so far this year, the price has surged and dipped at an incredible pace, going from almost $30,000 at the start of January to over $58,000 just three months later.
Many analysts believe that the right time to buy crypto is now and that the price will continue to experience a steady overall rise year-on-year. Cryptocurrencies have been seeing rapid adoption, with giant corporations and financial institutions now deciding to purchase Bitcoin. These days, you can buy Bitcoin with a credit card and it is easier than ever for the average investor to get on board. In fact, you can even buy Bitcoin with Paypal, making the entire process smooth, simple and convenient.
If you do decide to board the Bitcoin train, you need to research what to consider when buying cryptocurrency, how to know when to buy cryptocurrency, and which cryptocurrency day trading tools to use.
When analyzing the best time to buy Bitcoin in 2021, you want to stick by the general rule that says “buy low and sell high”. Yet, with BTC at an all-time high but potentially about to go up much higher, what should be considered a high purchase price?
To come to a conclusion on this, it is important to assess a wide variety of factors from global market news, to crypto events, emerging trends and the impact of time of day on your investing. Let’s start with the big picture.
Global Factors Impacting Crypto Prices
Global factors, including world problems such as COVID 19 can have a huge influence on the financial markets. The global instability caused by the pandemic has been devastating for national economies, but the last year has seen the best performance ever for Bitcoin. This is partly due to the fact that crypto gains momentum, in periods of traditional market uncertainty, as it is seen as a safe haven from factors causing fiat currency instability.
How long this current high will last is uncertain, since the inherent risk of a highly volatile asset class like digital currencies may mean that market sentiment shifts as global financial stability settles.
Crypto Market News and Events
Don’t just focus on general financial news, it is also critical to keep a finger on the pulse of crypto market sentiment with the latest updates from leading crypto news sites. You should keep an eye out for market events, such as a Bitcoin halving, which can hugely impact the BTC price, or a coin fork. This is a blockchain upgrade that can lead to the creation of a new network that splits from the original and with it, a new currency. This is significant because if you own the original coin, you can receive a share of the new currency.
The major cryptocurrencies, such as Bitcoin, Ethereum, Litecoin and Ripple are less vulnerable to market manipulation than low cap coins. However, whichever coin you choose, even a top performer like Bitcoin, you need to check its trajectory. Is the market for the coin bullish or bearish? If it is going in a downward trend, it might be worth waiting until it has hit a bottom and is ready to climb back up.
The Best Day to Buy Cryptocurrency and the Right Time of Day
Commonly, the best day to buy is when everyone else is taking a break and demand is lower, leading to lower prices. This is usually on the weekend – Saturdays and Sundays.
Any guide to choosing the time of the day to buy needs to take into account that compared to other cryptocurrencies will a lower market cap, Bitcoin is relatively stable, although still far more volatile than major fiat currencies. The price of BTC can change dramatically more than once in just a matter of hours. So, timing is critical, and you will need to keep a close eye on price charts, as time-based patterns may change from one week to the next.
Do Your Own Research
If you are wondering how to get your Bitcoin timing right, take in the advice of experts but also do your own research, examining the various factors that impact the market price. Look into current market sentiment, review the latest updates and gain a basic understanding of price analysis, learning how to read technical indicators, recognize patterns and understand concepts like support and resistance.
Try an Automated System
If you don’t feel that you have the time or the knowledge to decide for yourself when to buy Bitcoin, why not try a fully automated system?
Here, at ArbiSmart, our EU licensed crypto arbitrage system does all the work for you. You just deposit funds in either fiat or crypto and the platform takes over, providing returns of up to 45% a year, depending on the size of your investment, at close to zero risk.
The reason that crypto arbitrage is considered such a low-risk investment strategy is that it is not vulnerable to crypto market volatility, but rather generates profits from temporary price inefficiencies– instances where a coin is available on different exchanges, at different prices, at the same time. To see what this means, let’s look at how the ArbiSmart platform works.
The ArbiSmart platform is connected to 35 exchanges. Our fully automated algorithmic trading system monitors all of them simultaneously, 24/7, tracking hundreds of coins at once, looking for crypto arbitrage opportunities. On finding a price inefficiency, it will automatically buy the cryptocurrency on the exchange where the price is lowest, and then instantly sell it on the exchange where the price is highest to make a profit before the market adjusts and the temporary inefficiency resolves itself.
This is a great option if you are interested in a low risk, low effort crypto investment with substantial returns.
Clearly, the best time to buy bitcoin in 2021, will depend on a wide variety of market factors, from global issues to specific Bitcoin events. However you go about your purchase, whether you go through a broker, an exchange or another BTC owner and then buy Bitcoin with Paypal, a credit card or any other means the most important thing is to remember is that cryptocurrency is incredibly volatile. The price may experience wild swings, so you need to be prepared, as Bitcoin investing is not for the faint-hearted. For this reason, it is always a good idea to diversify making Bitcoin, part of a varied investment portfolio that includes a wide array of traditional and crypto assets.