Bitcoin: Why Now Is a Good Time to Buy Crypto?

by in Business, Business

From mid-November 2021, the fall of bitcoin began, which continues to this day. In crypto communities, crypto winter is a point of discussion. Nevertheless, some crypto enthusiasts are sure that today is a field day to replenish their portfolios.

What is Going on With Bitcoin & Other Coins?

Bitcoin is now worth around $16,000, although it hit its all-time high of around $69,000 a year ago. At the end of 2022, quotes of other most popular digital currencies such as Dogecoin, Polygon, Ripple, Solana, Ethereum and Cardano, also fell in price. 

One of the main factors why the crypto industry is now in such a sad state was the tightening of the monetary policy of the US Federal Reserve. Raising rates affects the global exchange system, including the cryptocurrency market. Fear of uncertainty drives investors to move their funds into fiat money or fiat-backed stablecoins, which devalues unsecured digital assets.

One thing that affects the cryptocurrency market dynamics is the activity of crypto market makers influencing supply and demand for digital assets.

Future of Bitcoin

From the point of view of technical analysis, a further fall of bitcoin is possible. Some are predicting a drop in the BTC rate to $10,000-15,000. This is especially true if the Fed continues its policy of high rates, which will cause a continued decline in stock indices and, accordingly, BTC.

In general, the further development of events will depend on whether the US economy slides into recession. Cryptowinter 2022 is expected to end in 2023-2024. After the sideways price trend of the first cryptocurrency, which sets the cyclical nature of the entire market, we should expect a steady growth to new highs.

Why Now is a Good Opportunity to Buy Cryptocurrency

For many investors, the crypto winter is a good time to increase the position of cryptocurrency in their portfolios. Buying cryptocurrencies is a medium- and long-term investment with a period of several years. The price may remain down for several months, or even a year, but a period of growth is also possible. 

You can remember when the BTC rate was about $40,000–$45,000. Now the rate is just over $16,000. Considering that it will likely soar to new heights with the arrival of crypto summer, now might be the right time to buy it. Unfortunately, many inexperienced traders do exactly the opposite: following the crowd, they start buying crypto at an unreasonably high price and selling when the rate drops, afraid of losing everything.

Where to Buy Bitcoin

Since you are dealing with the most sought-after coin, it will not be difficult to buy it on any major crypto exchange for fiat money. It is also very easy to swap other crypto you have, such as ETH, USDT, ADA, XRP to BTC, using special crypto services, many of which do not even require registration.

How to Invest

Investing in crypto is not always about income. Bitcoin is a high-risk currency, so it is recommended that you do not invest all your money in your crypto savings accounts and instead divide it between different digital assets. So you can share the risk and most likely not lose all your investments in the event of the collapse of some coin that you have in your portfolio. 

Develop an investment strategy, do not let emotions control your funds. Don’t invest in crypto just because some celebrity promoted it. Not a single crypto project will last long on advertising alone. The Shiba Inu has a funny dog face, but perhaps you should study the price chart and roadmap before investing in Dogecoin? Polkadot is a cool name for a token, but how about researching the Polkadot Price Prediction before you buy with the hope that it will skyrocket in a mere six months and make you a millionaire?

Final Thought

Any market is cyclical, and the cryptocurrency market is no exception in this sense. It works according to the same laws as the financial one with ups and downs. The most correct thing now is to be patient, even if there are positions that are in drawdown. The price situation can turn in the opposite direction literally at lightning speed. So you have to keep calm. Many agree that cryptocurrency can become a store of value. Why? Firstly, there is a limited number of bitcoins in the world, and secondly, there is a tendency in the world to legalize transactions with cryptocurrency, which can attract interest from investors. And the more people start to show interest, the more the demand will grow and the higher the cost will be.