When to Buy Cryptocurrency? A Simple Investment Technique

Home » Trading Crypto » When to Buy Cryptocurrency? A Simple Investment Technique
August 8, 2018 by
When to Buy Cryptocurrency? A Simple Investment Technique

Dollar-Cost Averaging – A Deceptively Simple yet Effective Investment Technique

When is the best time to purchase Bitcoin or other cryptocurrency? There is an investment technique called dollar cost averaging that ensures that you will not go wrong whether you’re buying or selling cryptos. No one knows the right time to buy something, but using techniques like dollar cost averaging allows you to be correct either way.

Dollar cost averaging is buying a fixed amount on a regular schedule no matter what the cost is. The trick is to never put or pull it out all at the same time unless something crazy happens. You buy every day or a week or month regardless the price. For example, you have $1,000 and you want to buy $100 worth every week. Sometimes the price will go up, sometimes the price will go down, regardless what happens you buy $100 per week.

On some exchanges, you can even set your account to buy every day, week or month automatically. You can do the same on the sell side. That is, make sure when prices are peaking and you wish to take some profits off the table, you aren’t selling everything at once. Instead, just take a little off the table at a time. When prices go down again, put back a portion of what you pulled out previously. When it peaks gain, take some of your profits off. And repeat the cycle over and over again.

The trick is to take profits off from time to time, but make sure not to pull everything out at once. Because in trading, the number one rule is to stay in the game. If you have no money left in the game, then you can’t play at all. Therefore, seasoned investors use the dollar cost average investment technique–a simple technique but one that will result in great rewards.

Further reading: Cryptocurrency Sentiment Improves, Bitcoin Prices Skyrocket
Korean Crypto Exchange Bithumb Hack Reveals Signs of a Strong Market

Disclaimer: The information provided on this website does not constitute investment advice, or any other sort of advice, and you should not treat any of the website’s content as such. Nothing on this website should be taken as an offer to buy, sell or hold a cryptocurrency. You should conduct your own due diligence and consult with a financial advisor before making any investment decision. HybridBlock will not be held responsible for the investment decisions you make based on the information provided on the website.

 

Name Price
Bitcoin (BTC)
$10,375.48
Ethereum (ETH)
$194.92
Bitcoin Cash (BCH)
$309.52
XRP (XRP)
$0.263066
Litecoin (LTC)
$71.84
Cardano (ADA)
$0.047571
IOTA (MIOTA)
$0.253879
Dash (DASH)
$90.40
NEM (XEM)
$0.045729
Monero (XMR)
$76.41
Stellar (XLM)
$0.058810
EOS (EOS)
$4.11
TRON (TRX)
$0.015834
Bitcoin Gold (BTG)
$10.29
© Copyright 2018. HybridBlock News.