3 Big Reasons This is The BEST Time to Invest in Bitcoin (and also stocks) | by Henrique Centieiro | Oct, 2022

Investing is a way to make your money work for you while you do nothing at all. Who wouldn’t want that? If you want to build wealth, investing is a very effective way to do that. Investing didn’t just come to be. It has been around for hundreds of years through stocks and bonds. Now we have other forms of investment, such as real estate, mutual funds, fixed deposits, and even cryptocurrency, which is going to be our main point of focus.

It is essential to know that different investments offer different returns and risks. For the newbies, ‘return’ is the amount of money you get back on your investment. Think of it as the profit your asset has brought you because, apparently, an investment is supposed to bring an increase in value; otherwise, what’s the point? And ‘risk’ is the possibility of your investment losing value or bringing a lower return than expected.

Crypto investing can take many forms, but the most popular one is buying crypto directly. You can choose to buy one or more cryptocurrencies, such as Bitcoin, Ethereum, and other altcoins.

Cryptocurrencies are very volatile assets meaning that the price can swing a lot in short period of time, and that is why investing in cryptocurrency is a riskier enterprise. Nothing is certain, and knowing the best time to invest and stay in the market would help investors reduce the risks associated with investing in cryptocurrency.

This article aims to explain and give reasons why the best time to invest is now, so stay with me. Before we proceed, here’s a little disclaimer: This article is not financial advice, all of the findings shared in this article are based on my research, so I suggest you also do yours before choosing to invest.

The stock market is the oldest form of investing, so any stock market chart or movement is also applicable to predict Bitcoin and the rest.

There are 2 types of market movement that depict the state of a market at a particular time. ‘The bear and the bull market.

A bear market is when a market experiences a prolonged price decline. So if the trend was down, i.e., falling stock prices, it is considered a bear market. The other type of market is the bull market, which is when share prices rise, encouraging people to buy.

We are currently in a bear market, and we have been for about 270 days at the time of writing this article. In the past, two of the biggest bear markets were 365 and 375 days long, suggesting that we may be closer to a bottom or may have even reached the bottom. So even if you were thinking of investing, now’s the right time to do so (or at least we are closer to the right time to do it!), but it won’t be advisable to invest a considerable sum in stocks or crypto or whatever you’re trying to invest because we’re still not sure what lies ahead.

A lot is going on in the world at the moment. A lot! From interest rate hikes, crazy inflation rates, lockdowns, and even wars, there are many things to factor in this current bear market. Supply chain disruptions, the Credit Suisse crisis, and the British pound reaching an all-time low since 1985. Comparing these with the macroeconomics of the previous bear markets shows that this particular bear market we’re in is a bit different.

Because this article focuses on investing in Bitcoin and other cryptocurrencies, we’re going to talk more about that. Looking from the lens of the longest bear market that has occurred in the past, Bitcoin has about 3–4 months of additional pain ahead. This means that if you slowly start investing now and you wait, there’s a very high probability that you’ll do well because time in the market beats timing the market. You’ve probably heard the saying, time in the market beats timing the market. This means that those who stay invested over the long run in a well-diversified portfolio will do better than short-term investors.

Timing the market to understand when exactly the bottom is, is almost impossible because no one can buy at the bottom to sell at the top.

I stated earlier that this is not financial advice, but let me share what I personally do.

· Stay in the market

Because the stock market hasn’t been really encouraging and the chances of a global recession are high, some investors might think it is time to pull out of the market. Leaving at that point means risking missing the best days of the market.

The best days in the market come after the worst days, so if you try to avoid the worst days by staying out of the market, you will probably miss those best days as well, and then your returns will be cut in half.

80% of the market’s single best days come within 2 weeks of its single worst days. Source.

So what I do is that instead of leaving the market, continue investing and, if anything, increase your investment if you can afford to. According to history, it will pay off.

· Dollar-cost averaging (DCA)

This is hands down one of the best strategies you can ever employ, especially during bear markets.

You definitely don’t need to do technical analysis to nail it. DCA is an investment method that refers to when an investor constantly invests a small, fixed amount of money, which is likely to yield better returns over time. Basically, it means that instead of investing a lump sum of money at once, the investor invests in small increments over time. For example, If I have $1000 that I want to invest, instead of investing the whole amount at once, I could set aside $100 every month or every week to buy Bitcoin or any crypto of my choice.

While you’re ‘dollar cost averaging’ your favorite stock or cryptos, it is also recommended to have a well-diversified portfolio with altcoins because while Bitcoin will give you twice or thrice returns, altcoins may give outstanding returns, for example, 20x, 30x multiples on your investment.

But since you don’t really know which altcoin will perform well, it is always good to diversify. If you have 10 altcoins, for example, 3 of them may perform very well, about 3 or 4 of them may break even, and 3 of them may go to 0, so it’s smart not to put all your eggs in one basket.

One advantage of implementing the dollar cost averaging strategy is that it helps me sleep better at night, so I 100 percent would do this.

· Be a long-term investor

This means that you can afford to be patient for a long time. By a long time, I mean 5 to 10 years. Don’t invest for the short-term benefits. Short-term investors have a way higher chance of losing money, and they can’t be compared to a long-term investors.

Being a long-term investor does not mean you cannot take profits, you can take profits when you have significant returns, and you identify/ understand the market cycle.

Finally, the chart above shows us the worst 6-month periods in the stock market and the forward total returns. As you can see, in 19 out of 20, the market has fully recovered within 1 year.

In conclusion, the best time to invest in Bitcoin was before it gained popularity, the second best time is NOW.

BTW, if you enjoyed this article, you will love this video.

This article is not financial advice, and the views expressed are only personal views. I’m just a retard.

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