#BITCOIN, When to Invest n How Much to Invest

It's very important to understand that, in the present scenario, investing in #BITCOIN or any other #cryptocurrency is very very risky.

Hence invest only the amount that you dare to lose the very next moment. Yeah, but for sure, various strategies can be adopted to minimize the risks.

Before you start investing, read a lot and set the following parameters:

1: Time horizon

2: Target Price

3: Exit Price

Cryptocurrency can definitely be part of your portfolio, depending upon your risk appetite, age and other financial goals n requirements, but not the major part of your portfolio.

It’s always advisable not to invest all the money in one go.

The best part is, if you have a long time horizon (at least a year), you can start with a lumpsum amount and then invest on dips or in parts periodically.

For beginners::: check BTC/USD graph with data points marked on weekly basis. 

Kindly Note:

Since BTC has grown at a tremendous rate, so be prepared to expect high dips, that in fact may be the time to make a re-entry, provided you have read and understood the reason for such high dips.

IF YOU ARE CLEAR WITH THE FUNDAMENTALS OF SOMETHING AND YOU STRONGLY BELIEVE IN ITS FUTURE BUT THE MARKET IS IN PANIC, THAT MAY BE A GOLDEN BUYING TIME FOR YOU !!!!

Is SIP of equated periodic investments the right strategy to invest in bitcoin?

No it is not the best strategy. Though SIP decreases the risk exposure by not investing all money at once.

A SIP is advisable when you are not able to set the Target Price and Exit Price within a time horizon.

A SIP is always helpful to deal with following scenarios::

1: high volatility in the market. In case of frequent rise and falls in the market, it helps to average the buying cost

2: when we are not sure of the entry point in the market

3: It buys time to the investor, as all amount is not invested in one go

4: It is easy, as can be done periodically, thus managing the easy flow of money

5: it is meant for long-term perspective

A SIP of equated periodic investments is done to average out the cost, benefitting from the volatility.

Now in case of Bitcoin , since it is witnessing a high growth rate, hence SIP of equated periodic investments will rather increase your holding cost, but it has a strong advantage of that it shall help you buy time, as Bitcoin is a high risk segment, hence investing all money at once shall be very very risky.

My personal opinion:: Go for SIP is you are a beginner in the market.

There are various ways to structure a SIP. An easy approach for beginners shall be::

Break your amount to be invested in 3 parts ::

1: A lumpsum amount to begin with

2: A part that shall be broken into periodic SIPs

3: A part to be kept for dips

This is an easy approach, to begin with, though there may be more sophisticated approaches.

Looking into the rate of growth of Bitcoin

" A weekly SIP can be good to start with"

Link to check #BITCOIN and other #cryptocurrency graphs, prices, marketcap:: https://coinmarketcap.com/

Read a lot, stay connected, and be prepared for intelligent gambling.

BITCOIN has certain disadvantages, hence there shall always be sentiments for a better alternative. Keep a close watch on them. DO NOT INVEST ALL YOUR MONEY IN BITCOIN

KINDLY READ THIS POST TOO. CLICK ON THE LINK

Note:: for more info on this subject, kindly email:: [email protected]

#BITCOIN #CRYPTOCURRENCY