Best Time To Invest In Crypto

When Should I Invest In Crypto

Im not an investment expert, but I usually follow the philosophy that its almost always better to own an asset rather than sit on the cash . This philosophy is the same with stocks and bonds.

The best time to invest in crypto was probably back in the early days of Bitcoin when you could buy it for pennies. In fact, for most folks reading this, that was probably the investment opportunity of your lifetime and you missed it like most of us because Bitcoin was difficult to understand, scary new, and figuring out even how to acquire it was a challenge.

The second best time to invest is now. Youve probably heard this statement before with regards to stocks and its true with most investments. You could attempt to time the market, but generally those who invest regularly at fixed intervals will outperform those who try to buy the dip.

All cryptocurrencies are not equal. Bitcoin is now considered to be something more akin to digital gold and might only ever be used as digital storage place for money rather than a useable currency. Other digital currencies like Ethereum and Stellar Lumens show more promise in being utilized as an actual currency to purchase goods and services. And yet there are other coins with no real use-case other than speculative trading for quick profits such as Shiba Inu.

When To Sell Bitcoin

Traditional wisdom says you should buy low and sell high. But whether you should sell bitcoin depends on your investment horizon, risk appetite and financial goals. Although some website speculate that certain days of the week are better or worse then others for selling bitcoin, we believe that any decision to buy or sell should be based on analysis of crypto fundamentals.

New Cryptocurrency To Invest In 2022

The crypto market is still relatively young compared to traditional asset classes, such as equities and bonds. As such, new and exciting projects are launching on a regular basis, each looking to obtain market share from leading coins like Bitcoin and Ethereum.

In this guide, we take an in-depth look at ten of the best new crypto coins for 2022, touching on what they are, their price potential, and how to invest in them today with low trading fees.

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Is There A Good Time To Buy

There is no general rule when to buy cryptocurrencies. Usually it is not a good idea to buy in at the peak of a bubble, and usually, it is also not a good idea to buy it when prices are crashing. Never catch a falling knife, as the traders wisdom says. The best time might be when the price is stable at a relatively low level.

The art of cryptocurrency trading is a vast topic in and of itself, and determining precisely when a crypto is in a bubble and when it has reached a local bottom after falling is not an exact science. What is easy to say in retrospect is a hard question to answer in the present. Sometimes a coin starts to rise, and after it passes a key line of historical resistance, and many believe it to be at the peak of a bubble, the real rally just begins.

For example, many people did not buy Bitcoin at $1,000 or Ether at $100, because it seemed to be overpriced. But years later these prices now appear to be an incredible bargain that will never again appear to the market.

This is definitely not financial advice, but some general guidelines to help you decide when to make an investment include:

How To Invest In Blockchain

Blockchain is often associated with cryptocurrency, but its a technology that stands on its own two legs. It might be a good investment option in its own right.

Several large technology companies run blockchain operations, such as IBM, Oracle Corp., and Visa. You might consider purchasing individual stocks in these companies, or you could purchase exchange-traded funds that deal exclusively with blockchain-related companies. Some viable ETFs include:

• Reality Shares Nasdaq NexGen Economy ETF

• Amplify Transformational Data Sharing ETF

• Innovation Shares NextGen Protocol ETF

These ETFs have performed very well over the past year and have generated good returns. The blockchain sector, as a whole, has outperformed the market.

Many investors are wary about investing in blockchain because theyre afraid of the volatility associated with cryptocurrency. But its important to know that investing in companies that run a blockchain is not the same thing as investing in cryptocurrency. Investing in the stock market is less risky than investing in crypto.

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Come Funziona In Pratica La Dca

Ovviamente, il successo della strategia DCA dipende comunque da ciò che accade sui mercato. Lo dimostriamo con un esempio basato sui prezzi reali osservati contestualmente alla più grande fase di ribasso del bitcoin fino ad oggi. Se hai investito $ 100 in bitcoin ogni settimana a partire dal 18 dicembre 2017 , avresti investito in totale $ 16.300. Il 25 gennaio 2021, il valore del tuo portafoglio sarebbe di circa $ 65.000 con un ritorno sull’investimento effettuato di oltre il 299%.

Al contrario, investire subito tutto il capitale in una fase in cui i prezzi sono al picco è considerata un’idea negativa, ma come si fa a saperlo? Se avessi investito il medesimo importo di $ 16.300 interamente il 18 dicembre 2017, avresti perso quasi $ 8.000 durante i primi due anni. Il tuo portafoglio avrebbe recuperato, ma nel frattempo avresti perso la possibilità di reinvestire di volta in volta i profitti .

Ipotizziamo ora che tu abbia atteso un anno e investito $ 200 in bitcoin ogni mese tra dicembre 2018 e dicembre 2020. In questo caso, il valore del tuo portafoglio supererebbe di poco $ 13.000 nel 2020, rispetto a $ 23.000 che avresti ricavato investendo in un’unica soluzione. Investendo tutto il capitale subito, avresti ricavato un profitto più elevato, ma avresti corso rischi maggiori: l’intero investimento avrebbe risentito di eventuali variazioni significative dei prezzi avvenute dopo la data del lancio.

Assess Your Risk Tolerance

Different analysts have offered various predictions about the outlook of the crypto industry after 10 or 20 years from now. While some professionals project that a BTC token will hit $500,000 after ten years from now, some offer a pessimistic view. The pessimists say that cryptocurrencies may not have remarkable growth.

So, before determining the right time to invest, its essential to evaluate your risk tolerance levels. At the same time, you need to know that the crypto industry is relatively new, and investing in it comes with risks. The good news is that should the sector succeed, you stand to gain a lot if youre among the first investors.

On the other hand, risk-averse investors may want to pause for some years to evaluate the industrys progress. While this may remove risks from you, you reduce your likelihood of reaping handsomely if crypto rates grow dramatically over time.

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When Is The Best Time To Invest In Cryptocurrency

Investing sometimes feels like gambling. Theres no way to predict whether a particular crypto will gain or lose value in the next month or year. Lots of people have made fortunes investing in Bitcoin and other cryptocurrencies, but people have lost money too. Aside from deciding which is the best crypto to invest in, choosing the time to invest in cryptocurrency is the most important choice youll make.

Investment oracles seem to be of little help when it comes to timing. Investing legend Warren Buffet famously says the best time to invest was several years ago and the second-best time is now.

Buffets observation may seem unhelpful, but it is true. Cryptocurrencies like Bitcoin have seen legendary ups and downs, but the overall trend has been up. Over the past 10 years, Bitcoin has delivered investors a compound annual growth rate of 116.41%. A 100 investment made in 2011 would be worth more than 200,000 a decade later despite the roller-coaster ride Bitcoin investors endured in the spring and summer of 2021.

If you had invested the same 100 in a NASDAQ fund youd have enjoyed a respectable CAGR of 17.77% and after a decade you would have nearly 5,000. Thats not bad, but its not 200,000. Cryptocurrencies have consistently outperformed stocks, commodities, and bonds for large and small investors alike. If you know how to invest in cryptocurrency and at sites like Kriptomat, its a breeze you can start building your investment portfolio in minutes.

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Crypto Is Not Regulated

Many crypto-assets and other digital assets are commonly not considered to be financial products. Because of this, the platforms where you buy and sell crypto may not be regulated by ASIC. This means you may not be protected if the platform fails or is hacked.

When a cryptocurrency fails, investors will most likely lose all the money they put in. In most countries, cryptocurrencies are not recognised as legal tender. You’re only protected to the extent that they fit within existing laws.

Major Companies Are Engaging With Cryptocurrency

Some of the biggest and most dominant companies globally are now engaging with cryptocurrency – which once again, proves beyond doubt that this industry is here to stay in the long run.

For example, Tesla – which is one of the largest companies globally with a market capitalization of over$1 trillion, invested $1.5 billion from its balance sheet in late 2020 into Bitcoin.

Then you have companies like Overstock, Paypal, Microsoft, and Starbucks – all of which allow you to spend Bitcoin on their respective products and services.

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Is Bitcoin Bad For The Environment

The digital currency uses as much power as the Netherlands every year, with just 30 countries using more energy, according to researchers from the University of Cambridge.

Computers that mine bitcoin use up to 1% of the worlds electricity supply.

While some of bitcoins consumption is renewable , fossil fuels are still being used to power the mining and servicing of the digital currency.

This is why electric car manufacturer Tesla has stopped accepting crypto payments, causing bitcoin to fall. Find out more in our Guide to eco-friendly cryptocurrencies.

Apecoin Newest Crypto To Watch With High Price Potential

One of the new crypto projects catching investors attention this year is ApeCoin. ApeCoin is closely linked to the Bored Ape Yacht Club collection one of the most expensive NFTs on the market. Although APE is not directly created by the collections developers, it was airdropped to NFT holders upon launching in early 2022.

ApeCoin has also been announced as the native token of The Otherside, BAYCs upcoming metaverse project. The token has also been implemented into other blockchain-based games, such as the super-popular Benji Bananas. As such, many think ApeCoin is the best new crypto to invest in for long-term value potential.

Cryptoassets are a highly volatile unregulated investment product.

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Choose A Platform To Buy Cryptocurrencies

One of the disadvantages of buying cryptocurrencies is that you can’t get them in all the usual financial places. Banks don’t offer them and neither do investment brokerage firms.

For the most part, you’ll be limited to buying, holding, and selling cryptocurrencies on dedicated cryptocurrency exchanges.

Some of the largest of these exchanges include:

eToro

Gemini

Further Reading: our Gemini Review.

Unifimoney

Further Reading: our Robinhood Review

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Wealthfront

If you want exposure to cryptocurrency without actually having to buy crypto, could be the answer. You can gain exposure through two distinct cryptocurrency funds: Grayscale Bitcoin Trust and Grayscale Ethereum Trust .

And of course, you still have access to a large selection of ETFs, such as those for specific industries like self-driving cars and cannabis. When combined with cryptocurrency opportunities, you have access to more investments than ever before. Visit our Wealthfront review for further reading.

You can think of these platforms as brokerage firms specifically designed for cryptocurrencies. Each offers trading in the most popular cryptos, and of course, you should expect to pay a fee for both buying and selling.

Look Out For Obvious Signs Of Scam

Good coins have a transparent technical vision, an active development team, and a lively, enthusiastic community. Bad coins are not transparent, promote fuzzy technical advantages without explaining how to reach them, and have a community that is mostly focused on getting rich quickly. Perhaps the worst kind of cryptocurrencies are MLM coins like the now infamous scam Bitconnect.

We will talk more about Bitconnect in a bit. For now, here are some of the more obvious signs of scam.

It really goes without saying that the success of a project is directly related to the credibility of the team. Lets put it like this: if you are investing your money into a company, wouldnt you want to know that the company is in good hands and that your money is going to be appreciated considerably?

One of the most successful new projects of the current 2020-2021 market cycle is Uniswap. Although created in 2018 by ex-Siemens engineer Hayden Adams, Uniswap saw incredible success later on in 2020-2021. In March of 2021, it was generating fees of approximately $2-3 million dollars daily for liquidity providers who create a market for buying and selling on the platform.

Now, compare that to this team:

Yesyour eyes are not deceiving you, thats Ryan Goslings photo on the team page.

Of course, most of the time, bad investment advice wont be this easy to detect. But there are steps you can take to thoroughly research the projects team and ensure their credibility.

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Join A Reputable Crypto Exchange:

You will need a platform to help you buy cryptocurrencies in exchange for your fiat money. This platform is called a crypto exchange, and there are many good ones out there, including Coinbase and Binance.

You can make accounts there and start with demo trading. Here, you trade dummy cryptocurrencies based on real-time market conditions just to get some experience and try out the techniques you learn on Youtube and in ebooks. Once you get good at it, you can then start investing small portions of money and go from there.

How To Determine If Crypto Is Right For You

To be sure, you shouldn’t rush into any investment just because it is relatively cheap, experts say.

If buying crypto doesn’t fit your long-term financial goals, you shouldn’t purchase it just because it’s trading at a relative discount, according to Ivory Johnson, a certified financial planner and founder of Delancey Wealth Management in Washington, D.C.

“If your time horizon is 10 years, I think now is a fine time to buy it,” he said. Otherwise, he recommends that investors take a more holistic approach to the asset instead of trying to time a volatile market.

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Investors should have a clear goal for buying crypto instead of being pulled in only because the price dropped, he said. Reasons include seeing the asset as a store of value, viewing it as uncorrelated to stocks or wanting to own it because of the increasing rate of adoption.

Before buying, people should be conscious of how much of their total portfolio is invested in cryptocurrencies and make sure the allocation matches their risk profile, Johnson said. New investors should have a firm grasp on how much they’re willing to risk before they buy.

“If you put 20% in crypto and you can’t stomach volatility, you’ve got what’s known as a problem,” he said. “But if you’ve got 1% or 2% or 3%, it’s not as big of a hit to your portfolio.”

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Learning From The Past

What if you had purchased Shiba Inu a month ago or a year ago? If you had invested 100 in SHIB, what would you have now?

Curious? Check out the Kriptomat what-if calculator, which performs the calculations based on data that is refreshed around the clock. The calculator can tell you exactly how much your 100 investment would be worth today using actual historical data.

In fact, the calculator displays the current value of 100 investments for any of the 350+ cryptocurrencies on sale at Kriptomat.

The calculator shows that regardless of short-term volatility, crypto investing has been the source of substantial long-term returns.

One good way to take advantage of long-term upward trends is to use the Kriptomat Recurring Buy feature, which lets you set a schedule of regular purchases on a weekly, bi-weekly, or monthly basis. For the price of a daily cup of Starbucks, you can slowly but steadily build up your crypto portfolio in support of long-term goals like retirement, purchasing property, or paying for an expensive university education.