https://www.forex-news.com/
Forex-News has been the world leading economy news website since 2005. It has been a joyful path full of changing variables in this changing world. During the last three years we have also covered some of the most important news regarding Bitcoin and other cryptocurrencies. Wherever the news are, we are there.
, How to buy Bitcoin at the best of times without being an expert, Forex-News, Forex-News
Bitcoin
$19,197.29
+415.39
Ethereum
$602.38
+30.25
Litecoin
$84.08
+3.6
DigitalCash
$103.74
+4.77
Monero
$133.82
+3.23
Nxt
$0.01
0
Ethereum Classic
$6.20
+0.15
Dogecoin
$0.00
0

How to buy Bitcoin at the best of times without being an expert

5
, How to buy Bitcoin at the best of times without being an expert, Forex-News, Forex-News


, How to buy Bitcoin at the best of times without being an expert, Forex-News, Forex-News

With the huge rise that Bitcoin is going through, you may be thinking how to buy this cryptocurrency. But more importantly, you want to know if this is a good time to do it.

It is normal for a price as high as the $ 18,000 that the mother cryptocurrency is trading at today causes greed. This can pressure you to make hasty decisions thinking that the train is going to leave you.

Let me tell you that you are still on time, and although it is not the best time to buy Bitcoin, today I will show you some tools that will help you buy at the best prices.

, How to buy Bitcoin at the best of times without being an expert, Forex-News, Forex-News

All you will see below is information that will help you:

  1. You know and trust the fundamentals of Bitcoin.
  2. You will invest with a long-term vision.
  3. None of the above will be considered investment advice.

How to buy Bitcoin at the best times

1- Rainbow Chart

The funniest tool on this list. It is intended to observe long-term price movements, without having to worry about the volatile day-to-day fluctuations of Bitcoin.

Designed in the shape of a rainbow, where the colors identify the best areas for both buying and selling.

It was introduced into the ecosystem by the Bitcointalk user trolololo in 2014. It has colored bands that originate from a logarithmic regression, the other conditions of the tool do not have any scientific basis. It’s not the holy grail of investing, it’s just a price guide. It will be correct until one day it is no longer correct.

2- Historical RSI

Developed in 1979 by J. Welles Wilder, the RSI is one of the most widely used indicators in technical analysis. Its acronym stands for Relative Strength Index, which is translated as Relative Strength Index.

It is an oscillator type indicator that reflects the relative strength of bullish movements compared to bearish movements, and normalizes the calculation in a range that fluctuates between a high of 100 and a low of 0.

It is used to measure the strength of a trend or to look for signs of a reversal of the trend.

If you want to know how to buy Bitcoin at the best prices with this indicator, you should focus on using a long-term RSI.

In this case we will use the monthly RSI offered by the data provider Digitalik.

From this graph we can see how although the $ 18,000 that BTC is currently trading seems like a high price, it is still quite a long way from being overbought, compared to the peak reached in 2017.

The best places to buy Bitcoin using this RSI, is when the indicator is below 20 points indicating oversold.

However, if your vision is solidly long-term as it should be, you could still keep accumulating with good prices up to the 70 level of this RSI.

Already at level 80 or higher you should sound the alarms, you could start taking some profits and enjoy everything that you have waited for that moment to arrive.

3- Stock to flow

The Stock to Flow is a model designed by the Plan B analyst. Its purpose is to show how many years are needed to reach the current stock. The higher the result of the calculation, the higher the price.

Thanks to the Bitcoin production speed reduction event (halving) held every 4 years, there is a drastic shock in supply. If you add to this a constantly rising demand, it results in an upward explosion in price.

Brace yourself, based on the Stock to Flow model, that explosion is just beginning, and it should push the price towards an ATH of around $ 100,000.

, How to buy Bitcoin at the best of times without being an expert, Forex-News, Forex-News
Bitcoin Stock to Flow. Source: digitalik.

4- Average Cost in Dollars

To end a method that by itself is considered an investment strategy.

Its name is Dollar Cost Averaging (DCA), which translates into Spanish as Average Cost in Dollars.

It is a strategy with which the investor divides the total amount to be invested in periodic purchases, with the aim of reducing the impact of short-term volatility, as well as immediately creating a savings plan with which the objectives are easier to achieve .

When using this method, purchases are made regardless of the price of the asset, since what must prevail is investment discipline at regular intervals.

This strategy eliminates much of the detailed work of looking for how to buy Bitcoin at the best prices.

Polishing your own plan

Despite the fact that I have said that it does not matter the price at which BTC is with this strategy, and that the important thing is to make purchases in a disciplined way, I have not said that some parameters cannot be added in order to improve profits. Why not combine it with any of the tools that I name in previous paragraphs?

Remember that everything exposed here is just information, from then on you should develop a structured investment plan.

For example…

If you had bought $ 50 in Bitcoin in a disciplined way every 15 days, during the last 2 years, today you would have $ 4,121 having invested only $ 2,650, which means a return of 55.52%.

But if we add a small parameter to this, such as buying a higher percentage when the historical RSI marks over selling, and decreasing as it goes to over buying, we would undoubtedly be generating better profits.

I repeat, from now on you still have work. Prepare an investment plan with clear rules to avoid emotions leading you to make impulsive decisions, and I assure you that in a few months / years you will see good results.

As the title says, it is not necessary to be an expert to know how to buy Bitcoin at the best prices, but this does not mean that you will not have to make any effort.

With the link that you find in the image below, you will be able to get your calculations to put into practice the DCA strategy with BTC.

, How to buy Bitcoin at the best of times without being an expert, Forex-News, Forex-News
Dollar cost averaging strategy applied to Bitcoin. Source: dcaBTC.

All of our publications are informative in nature, so in no case should they be followed as investment advice.



, How to buy Bitcoin at the best of times without being an expert, Forex-News, Forex-News

Get real time updates directly on you device, subscribe now.

, How to buy Bitcoin at the best of times without being an expert, Forex-News, Forex-News

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More