When is the right time to invest and sell cryptocurrencies?

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Investing in an entity when its price is low and is expected to rise is a smart investment strategy

Bitcoin is the buzzword in the cryptocurrency world. With so much attention devoted to it, Bitcoin never fails to amaze or shock investors. It recorded an all-time high of $ 65,000 (around Rs 48 lakh) in mid-April to fall below $ 30,000 (Rs 22 lakh) in May. He had recovered to exceed the $ 42,000 (Rs 31 lakh) mark but was trading at $ 38,000 (Rs 28 lakh) on Wednesday night. While those who have already invested in the world’s most popular and oldest currency see this volatility as risky, potential investors see it as an opportunity to make quick wins.

In such a situation, how do you decide when to invest in cryptocurrency? Industry experts have said that Bitcoin’s current price volatility is only short-lived and another bull may be just around the corner. Whatever the truth, there is no shortcut to making money. All speculative investments require patience and the ability to correctly read market trends.

One way to understand Bitcoin’s ability to deliver returns is to look at how it performed last year. Bitcoin’s value in March 2020 was around $ 4,000 and by January of this year it hit over $ 33,000, a return of over 800% in just eight months.

When to invest

Investing in an entity when its price is low and is expected to rise in the future is considered a smart investment strategy. When comparing the value of Bitcoin since April, it wouldn’t be wrong to say that this is a drop in its price. Again, it’s hard to say for sure when Bitcoin is going to rise or if it is going to crash again. If you are thinking of investing in Bitcoins, there really isn’t a perfect time. However, if your strategy is to make long-term gains, buying during a low and holding it until you make a profit is an option you can explore.

You can also divide your investment into phases. This will help you better understand where value is heading over a contiguous period of time.

When to sell

The adage “Buy low, sell high” is one of the most popular market truths to practice. Although the strategy looks eye-catching, it’s not easy to predict the high. However, if you have better investment alternatives that are less volatile, selling Bitcoin may be a viable option.

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