With each new all-time high comes an increasing number of people with hot takes on the best time to buy Bitcoin, and even more people eager to listen.
But they’re all wrong. We guarantee it.
Plenty of wise guys say never is the best time to buy (for this article, they’re irrelevant). Others create immaculate price-chart artwork that isolates a specific date or price. Some of these clowns even give themselves titles like “Blockchain Investors” or offer free e-book guides for buying Bitcoin.
But the best minds in the cryptocurrency space will almost invariably respond with three words when asked when to buy Bitcoin: “I don’t know.” Ignore anyone who says anything else.
The Best Time To Buy Bitcoin
There is no “best” time to buy Bitcoin.
Searching for the best time betrays a focus on short-term price performance and chasing quick returns. This mindset is ill-advised. Serious Bitcoin adopters do not care about short term profits, and anyone eager to buy Bitcoin also should not. Bitcoin is a revolutionary form of sound money, not a get-rich-quick scheme.
But Bitcoin is also a patently contrarian investment and somewhat unintuitive to boot. Seeking a modicum of advice before exchanging fiat currency for cryptocurrency is a rational choice. Except advice premised on a best time is bad advice.
Good advice: adopt three incredibly simple principles before buying a single Satoshi. Educate yourself, buy the dips, and never sell.
Educate Yourself
Buying Bitcoin is no different from investing in any other traditional asset class. No one should buy what they don’t understand. Before buying a single Satoshi, commit to a synchronous process of learning and buying, prioritizing the former over the latter. Do not frantically chase quick profits or parabolic price patterns.
Defending one’s investment is not unimportant either. Bitcoin critics multiply like rabbits. And even a modicum of knowledge about Bitcoin beyond the inaccuracies peddled by so many journalists, economists, and politicians lends valuable credibility to one’s investment in Bitcoin.
To learn about Bitcoin, visit James Lopp’s Bitcoin Resources and browse this list of reading materials from the Nakamoto Institute. Watch any of the videos on Andreas Antonopoulos’ YouTube channel too.
Be sure to tune in for episodes of the YouMeAndBTC and Noded podcasts for entertaining and high-quality Bitcoin discussion!
Buy The Dip
The closest thing to an ideal target price for buying Bitcoin is the dip (BTFD). The number of times we regret buying dips totals zero. If you don’t trust yourself to buy the dips, commit to a scheduled purchasing plan.
Bitcoin is nothing if not volatile and largely unpredictable which is why most people know better than to try to time the market by trying to guess when the price has reached a top or bottom. Playing the price to find an ideal entry point burns more people than it benefits. And we, therefore, offer no opinions on when to buy (even during a dip).
But a bad time to buy is generally not in a downward price trend. (Feel free to disagree in the comments section.) And holding Bitcoin long-term is the best compliment to a buy-the-dip strategy.
Never Sell
The principle that true Bitcoin adopters never sell their Bitcoins is represented by the world “hodl“.
Why not sell and take profits? Because Bitcoin is a commodity in the process of monetizing, we call this hyperbitcoinization. It has been a long process with many ups and downs, but it would be foolish to accumulate fiat profits which end up worthless.
Part of this philosophy also requires anyone buying Bitcoin to only spend on Bitcoin as much money as they are entirely comfortable losing completely. Some Bitcoin investors only nominally accept this idea. We recommend serious consideration.
In the future, unforeseen and unforeseeable risks may render the Bitcoin network unusable and unsalvageable. It’s important to hedge by having a fiat cash reserve for emergencies and investments in traditional investments like stocks.
Conclusion
Bitcoin is one of the most polarizing fixtures of the early twentieth century – maybe even more so than the forty-fifth American president. Critics treat Bitcoin with embarrassing flippancy and intellectual laziness. But investors cannot afford (and just don’t want) to imitate such behavior.
The simple advice explained in this article is the only good advice (and therefore the best advice) for buying Bitcoin. Through education and simple discipline, the world of Bitcoin becomes great fun and never boring.
Welcome to the party.
