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When Is The Right Time To Trade Bitcoin in 2024

When Is The Right Time To Trade Bitcoin in 2024

Planning to invest in cryptocurrency? Then check out this blog and find out more about when is the right time to trade Bitcoin in 2024. 

If you are thinking about how to become an investor or possible ways to invest in Bitcoin or, for that matter, any cryptocurrency, you need to factor in a lot of things. 

Whenever anyone is thinking about trading in Cryptocurrencies like Bitcoin, there are a lot of questions that come to their mind. Among them, the question of timing is perhaps the most pertinent.

Cryptocurrency as an asset is very volatile. There are far too many things that can happen within a short time, which makes the decision to buy or sell even more difficult. 

Today we will try exploring some of these relevant questions.

It is important to note that the suggestions given here should not be treated as financial advice. They are more like guiding principles that can make your Bitcoin trading journey easier. Let’s find out more about when is the right time to trade Bitcoin in 2024. 

When is the right time to trade Bitcoin in 2024

First, we will talk about some general principles regarding Bitcoin buying and selling, and then we will get into the specific question - when is the right time to trade Bitcoin in 2024? 

Let’s dive into the topic without further ado. 

When to buy Bitcoin and when to sell it?

There is no definite answer to this question. There is no best time to buy or sell Bitcoin since nobody knows what can happen a week, month, or year from now.

When 2023 began, the value of Bitcoin was around $47,000. 

As the year progressed from 1st January, the price consistently decreased. There have been a few spikes here and there, but the price has not crossed the $47,000 mark, which was Bitcoin’s price on 1st January.

At the moment, Bitcoin’s price is around $38,000. The price has lingered around the $40,000 mark for a long time but has not been steadily over $40,000. Many see the $40,000 mark as a consolidation point now. However, that does not answer the most important question - when to buy Bitcoin or USDT and when to sell.

If you have bought Bitcoin over the last few years, your balance could be in red now. 

Considering that Bitcoin’s price fell from $60,000 to almost half of it, many of us are not profiting off our Bitcoins for now. 

From here, there are two things you can do. You can either wait (HODL, in crypto terminology) or sell your Bitcoins to avoid further loss. Most crypto experts would want you to choose the former option, especially at this time. Let’s find out why. 

The power of HODLing

HODLing, or holding, is the most powerful thing you can do with your cryptocurrencies. The same principle applies to a lot of assets. If you are keen on making a profit and are in the game for the long run, you should also get into the habit of HODLing.

HODLing is significant because it gives a lot of power to retail Bitcoin investors. Unlike large institutional investors, retail investors do not have the power to influence the direction of Bitcoin’s price. 

Many of the ups and downs we see result from large institutional investors playing their role in the market. While retailers cannot do anything like that with their limited capital and Bitcoin holdings, they can at least HODL to wear out the inconsistencies.

When you retain your Bitcoins, no matter the market condition, you give your portfolio another chance to grow. 

Once we look at the history of the Bitcoin price movement, no one can say when the next rally will begin. Many people had declared Bitcoin dead and a bubble before it touched its all-time high of $60,000. 

The point of saying all this is to reinstate the fact that Bitcoin can go up or down at any time. When you HODL your portfolio, you are essentially waiting for the storm to pass before you make a call. However, you must understand the implications of selling Bitcoin to understand the importance of HODLing. 

Note that gains from cryptocurrency trading are taxable. Consider consulting a firm like KoinX to know more about the taxes on your gains.

When is the right time to sell Bitcoin?

There is no right time to sell Bitcoin. Let us explain why.

In theory, we are nowhere near the highest potential of Bitcoin. Bitcoin has the potential to increase in value many times over. We have seen instances of this in the past as well. 

Most of us know that the price of one Bitcoin was negligible when it began. The asset went up a thousandfold and even more in less than ten years. With a track record like this, it is difficult to say when is the right time to sell Bitcoin.

However, there is another way of approaching this question. If you are investing in Bitcoin systematically, you can wait for a target fulfillment before withdrawing. It would also be a good idea to only sell parts of your Bitcoin holdings at once.

If you had a target of making $100,000 with Bitcoin (including your investment), selling your holdings once you reach that target is a good approach. We must understand that Bitcoin's true value lies in what it can get for you, not in itself. When you find yourself at a place where selling Bitcoins would allow you to fulfill any of your dreams, it’d be the right time to sell.

The problem with the target-based approach is that most people do not have clear goals. But there can be a few universally acceptable situations. For example, withdrawing Bitcoin for debt repayment makes a lot of sense no matter where you are. 

When is the right time to buy Bitcoin?

The best time to Bitcoin is now. The only time when buying Bitcoin would not make sense is when you have to compromise with other aspects of your life to buy Bitcoin. If you have surplus disposable money after taking care of all your needs, you can always invest that in Bitcoin.

The key to investing in crypto is investing only an amount you can comfortably spare every month or week. If you do this consistently for a long time, you will soon have a good portfolio without compromising on any other aspect of your life.

There is no right time to buy Bitcoin, but there is a right approach to it. You can either consistently buy Bitcoin whenever its price is low or buy a predetermined amount of Bitcoin at a regular frequency. However, the former approach requires more awareness on the part of the investor. You must be on top of the price movements to make the best buying decisions. Therefore, doing a SIP (systematic investment plan) with Bitcoin can be a great option.

Now that you can buy Bitcoin whenever and however you want, consistent savings over a long period of time should be your goal. Many apps like Moonpay allow buying and selling Bitcoin with just a few clicks. Make the most of these technologies to be smarter with your Bitcoin investment. 

If you are running short on funds or are still not convinced to invest your hard-earned money into cryptocurrency but want to benefit from holding bitcoins, we have an alternative option for you. 
Enter crypto mining!

You can build your custom CPU or a mining rig and use CPU Mining to verify cryptocurrency transactions and earn a small percentage of the transaction fees (also known as Gas fees).

Will Bitcoin hit $100,000 in 2024?

Bitcoin, for sure, has the potential to hit the $100,000 mark in 2023, but it is becoming less likely with every passing day. However, that does not mean Bitcoin would keep hovering around the $40,000 mark.

Some experts predict that the crypto winter will not end until 2024. But that does not mean there won’t be any spikes in the price of Bitcoin. Coming back to the question of Bitcoin touching $100,000, it should not be something you base your Bitcoin trading decisions on. While Bitcoin has every chance to reach that point by this year or the next, there is no guarantee. You might be disappointed if you buy with the expectation of selling when Bitcoin touches the coveted mark.

Whether Bitcoin goes on to $100,000 this year, it is a good time to invest systematically in Bitcoin. The rewards may show up years from now, and you will be glad for your decision. At the same time, selling Bitcoin is a personal decision more than anything else. 

While it is a good idea to dedicate a percentage of your portfolio to crypto, it should always have a purpose. Once you have enough to fulfill the purpose, selling and withdrawing make a lot of sense.

In the end, buying or selling Bitcoin boils down to what you want. 

Conclusion

As you can see, there is no definite answer to the question of when is the right time to trade Bitcoin. 

A lot of it depends on your personal goals and financial condition. 

Part of it also depends on your risk appetite and how much you are willing to wait. Once you have the answer to these questions, you will also understand when the right time to trade Bitcoin comes.

Sam Makad is a business consultant. He helps small & medium enterprises to grow their businesses and overall ROI. You can follow Sam on Twitter, Facebook, and Linkedin.