Know the right time to buy bitcoin by making an informed decision based on your knowledge of its fundamentals and the best strategy to use.
Over the years, bitcoin has been a major discourse in the world of finance. It has not only proven to be a pioneer in the digital currency ecosystem but has also earned the title of the best-performing asset of the last decade (ten years).
There have been speculations around the different cycles of bitcoin, whether we are now in a bull market or still in a bear market or if the bitcoin halving that’s going to happen this year will make the price skyrocket or not. If the question you are asking is, should I buy bitcoin now, then you are in the right place, let’s dive in!
Bitcoin and Its Fundamentals
Bitcoin, often referred to as digital gold, is a decentralized digital currency introduced in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto It operates on a peer-to-peer network, eliminating the need for intermediaries like banks. It relies on blockchain technology, a distributed ledger that records all transactions transparently and immutably.
The decentralised nature of bitcoin implies that it is not controlled by a single entity. You might be wondering what determines the value of bitcoin, the price is driven by the law of supply and demand.
Another important fundamental of bitcoin is that it has a limited supply of 21 million to ensure scarcity and guide against inflation. This means that there will only be 21 million bitcoins ever to be mined and a little above 19 million has been mined already.
When is the right time to buy Bitcoin
When it comes to buying bitcoin, there is no good or bad time. Here’s why:
To start with, bitcoin is not just a store of value, it is also a means to send and receive money a.k.a remittance without barrier. You will agree with me that if you want to send $1000 to someone in the US, the price of bitcoin doesn’t matter as you will be buying a thousand dollar worth of it and sending it to the recipient which can be sold immediately by the receiver.
Now, as a store of value, you don’t want to be timing the market as you might miss out and lose. It’s worthy of note that 95% of day traders lose money and are not profitable. Hence, the need for a smarter and better approach to save or invest in bitcoin. That’s where dollar cost averaging comes in. What does it mean?
Dollar Cost Averaging: Best Way to Save in Bitcoin.
Dollar-cost averaging is an investment strategy where an investor buys an asset like bitcoin at a regular interval (which could be daily, weekly or monthly) irrespective of the price (which is why I mentioned there is no good or bad time to buy).
Every day is a good day to buy, save and DCA bitcoin. Don’t take my word for it, let's use the bitnob DCA calculator to prove the validity of this claim.
If Mike saves $1 worth of bitcoin daily from 1st January 2023 till 31st December. By the end of the year, he’d have an extra $196 while beating inflation, that’s a whopping 53.74% increase! 
*** A Bitnob user who DCA’ed in 2020 and hodl his bitcoin till date.
There is the power of Bitcoin DCA especially when you employ it as a long-term strategy! Interestingly, on Bitnob, you don’t need to bother yourself on when to buy daily/weekly/monthly. You deposit into your wallet, set the frequency and we will take care of the rest.
Start Your Bitcoin Journey With Bitnob
Download the Bitnob app and follow the steps below to buy your first bitcoin and also create your first DCA plan.
- How to create DCA plan on Bitnob
- Step 1: Tap on “More” in the quick links section and tap on “Buy Bitcoin”
- Step 2: Enter the amount you want to buy and tap “Continue”.
- Step 3: Input a transaction note to help you remember your transaction and tap "Next".
- Step 4: Review the transaction summary, then tap on “Complete Purchase”
- Voila! You’ve successfully bought bitcoin.
- How to create DCA plan on Bitnob
- Step 1: Tap on “more” in the quick links section and then tap on “Savings”
- Step 2: Tap on “Create Savings Plan” and Select “Bitcoin Savings”. Then, give your plan a name.
- Step 3: Select an amount that you’ll be saving. You can start with as little as $1.
- Step 4: Set your savings frequency. You can choose to save every day, once a week, or once a month.
- Step 5: Set a lock period for your savings. It could be 3 months, 6 months, or a year.
- Step 6: Pick a start date for your savings. Then select a funding source, which is your USD wallet. Then, select Start Plan, and you're all set!
Final Words
In the face of market uncertainties, the decision to buy bitcoin should be guided by an understanding of its fundamentals and a commitment to a long-term mindset.
While market cycles and halving events may create short-term fluctuations, the enduring strength of bitcoin lies in its decentralized nature, limited supply, and the revolutionary potential of blockchain technology.
Embracing Dollar-Cost Averaging through platforms like Bitnob provides a strategic and disciplined approach to navigate the dynamic world of bitcoin investing.
So, should you buy Bitcoin now? The answer lies in your commitment to the fundamentals and your willingness to adopt a patient, long-term perspective to DCA!