If you ask anyone who made their fortune in Bitcoin today when the best time to buy Bitcoin is, they’d answer, “yesterday”, or “years ago”. And, to a large extent, their reply would hold a considerable degree of truth. After all, barely a year ago, Bitcoin peaked at $60,000. Anyone who’d held Bitcoin assets before then was guaranteed to make profits.

But, the market hasn’t been rosy-fortuned for investors, with the pioneer cryptocurrency taking on massive hits and recording record plunges of less than $20,000- a far cry from the heady heights of the previous year. 

Nevertheless, the past couple of months has seen Bitcoin’s value rise somewhat, even if it is still distant from its all-time peak. At the time of writing this article, Bitcoin is valued at $18,958.09, with the token fluctuating rapidly between the $17,000 and $23,000 ranges. 

With such inherent volatility, investors and enthusiasts are rightly confused about when to buy Bitcoin. The recent crypto market crash is even more reason to be cautious, with many investors on a digital-asset-selling spree of late.

When is the best time to buy cryptocurrency? What factors determine its rise and fall, and how can one take advantage of it? We answer these questions and more in this complete guide. Read on!

Why Should You Buy Bitcoin?

With so many cryptocurrency tokens on the market today, one could almost struggle to make a case for Bitcoin, as prominent as it is. The truth is that many investors today seek altcoins more than they do altcoins. The general feeling is that Bitcoin’s price is out of range for many, especially newbie investors looking to slowly put funds into the market rather than pump it in bulk. 

For these traders, the appeal of low-cost tokens is strong, as they can diversify their portfolios more quickly and wait for yield to come. And, it’s a smart strategy- little risk, big potential rewards. 

However, Bitcoin remains the premium token, even in the face of competition from Ethereum’s revolutionary DeFi blockchain. Although it has recently taken a massive hit in terms of its value, it remains the token to buy. Still not convinced? Here are a couple of reasons why:

Bitcoin is the first cryptocurrency

Bitcoin’s status as the pioneer cryptocurrency is one guarantee that it will never lose its relevance. 

It had a lot of time to establish its dominance in the cryptocurrency market and has rightly earned the right to be the most popular token. The latter is reflected in the fact that many people who say “cryptocurrency” actually mean Bitcoin. This might seem trivial, but in the grand scope of things, it means a lot. 

It is the cryptocurrency “standard”

Bitcoin is the industry standard for cryptocurrency. It is to crypto what the dollar is to real-world fiat currencies. 

Although using cryptocurrency as a mode of payment is not a trend that has caught on in many parts of the world, the few countries, and organizations that have it in practice use Bitcoin as the standard. You’re more likely to find a grocery store that accepts Bitcoin payments than one that takes Litecoin or other altcoins.

It is the most popular base cryptocurrency

Various trading pairs are available on different exchange platforms for traders who want to perform P2P (peer-to-peer) transactions. Some of the most popular trading pairs include the following:

• BTC/ETH
• USDT/BTC
• SOL/BTC
• ETH/BTC

Bitcoin and Ethereum are the most popular base tokens because of their overwhelmingly dominant market capitalization. As such, most people trade with either one of the pair.

And of these two crypto giants, Bitcoin is the most prominent and commonly used as a base token in exchange trading pairs. 

When Should You Buy Bitcoin? 

Having established why Bitcoin is a necessary asset to include in your portfolio, it’s time to answer the big question, “when is the best time to buy Bitcoin?”

In truth, anyone can purchase Bitcoin anytime, provided the capital layout is not overly substantial and is slightly risk averse. Today, Bitcoin is worth nearly $20,000. However, you can invest in minute amounts and watch it grow. 

With more significant layouts, you cannot afford to buy Bitcoin at just any time. With trading and purchases, you have to play a waiting game more often than not, watching market trends and charts to know when to buy or sell. Other investors prefer to use tools like trading bots, data aggregators or Bitcoin Rainbow Charts. 

Still, it’s not an exact science. Many traders often use tested and tried strategies like buying the dip. If you want to do things this way, you must be mindful of daily price changes and collate a lot of data on price trends and market swings. 

With Bitcoin, there’s no surefire way to know when it’s right to make a purchase. However, given recent trends, it is wise to purchase Bitcoin now. 

Why, may you ask? It’s a no-brainer! Bitcoin is presently at its lowest point in many years. Given that it peaked as recently as a year ago, there’s good reason to anticipate its rebound in the coming months or years. 

Investors who missed out on the initial bandwagon and failed to purchase when Bitcoin was as low as $1 now have a chance to make a profit. 

Let’s consider Bitcoin purchases from different angles:

Time of day

Some analysts recommend that you should buy Bitcoin when it’s past 3 PM. This is because most people leave work for home at that time. Markets and exchanges are supposedly at their most liquid at this time, and you should be able to facilitate a trade quickly.

However, a contrary opinion dictates that nighttime is the best time to purchase Bitcoin, given that most people are either too tired or asleep to think such complex thoughts. 

Nevertheless, given how volatile Bitcoin and the crypto market are, you should be careful at all times. 

Day of the week 

If you’re wondering what day of the week is the best time to purchase Bitcoin, you might want to do this on weekends. 

Bitcoin is a popular digital asset with business professionals who spend weekdays trading. On weekends, trading activity is less, with the reduced demand sure to result in a price drop. With price drops, the onus is on you to make the purchase, as the conditions are slightly favourable.

That isn’t to say that no trading occurs at the weekends. Instead, trading activity drops slightly, providing smart investors with a small window of opportunity to purchase Bitcoin at floor prices. 

Month in the year

Per aggregated crypto data analysis, the best month to purchase Bitcoin is August, as prices are much for favourable in this period than at any other time of the year. 

Expert analysis

Per economic analysis, you should also consider a cryptocurrency’s present market value before making a purchase. Bitcoin’s value fluctuates in relation to the dollar more than the values of other tokens on exchange platforms. ‘

As a result, the laws of demand and supply apply here too. With high demand, prices rise. In times where there’s reduced demand, such as the present, it may be wise to buy Bitcoin. 

Although business hours may be great for trading due to the increased market liquidity, it tends to be a poor time to purchase Bitcoin. Other factors to consider include time zone differences and market speculation. 

Factors affecting the rise and fall of Bitcoin

Now that you know the best times to buy Bitcoin, you should equip yourself with additional knowledge on the factors that affect the rise and fall of Bitcoin, as it will aid you in making wiser choices. 

Cost of production

Even digital assets have to be produced. And in Bitcoin’s case, the cost of production is relatively high. 

As Bitcoin validates its blockchain using a proof-of-work consensus model, it has to be mined. Mining is an energy-intensive process, requiring a lot of electricity and costly hardware. 

As miners compete to solve the complex mathematical puzzles that make up the verification process, there is a need for more sophisticated hardware and, by extension, more electrical energy. 

This procedure can affect the rise or fall of Bitcoin.

Competition

Although Bitcoin has the largest market cap of all the cryptocurrencies, altcoins like Solana, Dogecoin and Ethereum are making solid cases as market competitors. 

With investors happy to diversify their portfolios, their preference for these altcoins over Bitcoin can also affect their value. 

Regulations

Bitcoin is a relatively new asset class, and global authorities are still debating the best ways to classify and regulate it. The blockchain is an evolving technology, with many grey areas yet to be deciphered by even professionals.

With such uncertainty, it’s no surprise that many governments are in limbo about regulating it. Taxation is a big issue, given that it’s a decentralized asset. 

All of these factors combine to make Bitcoin a highly volatile asset. 

Conclusion

There’s no fixed, set-in-stone time that you can buy Bitcoin. Ideally, you should make purchases when the price is low, so there’s room for growth. However, given the token’s volatility, nothing is guaranteed.

The wisest course remains this: the best time to buy Bitcoin is now.