With Bitcoin (BTC) prices skyrocketing over the past few years, it’s safe to say that the space has gotten a little intimidating. It actually creates a weird paradox in the space: because of the price spikes, BTC gains more attention and becomes more recognized—however, with its price reaching unprecedented heights, people are also more afraid to get into the market.
With all that being said, when is the right time to get into it? If you’re looking for the short answer—spoiler alert—it’s that any time can be the right time. Don’t worry; we’ll break down why.
Make informed decisions
Before you get into the space, the most important thing you can do is do your own research and familiarize yourself with all the risks. By doing so, you’ll understand more how the space works and make sure that you don’t lose any money to careless mistakes.
First, familiarize yourself with all the slang. FOMO (fear of missing out), FUD (fear, uncertainty, and doubt), and buy the dips (we’ll explain this one a little bit more later) are some of the more important ones to be aware of as these are the slangs that refer to phenomena that can cloud your judgment.
FOMO, despite it being a little self-explanatory, catches a lot of victims on its web. How many times have you heard “I wish I bought BTC when it was [insert price here], I woulda been a millionaire by now!” In fact, it’s probably something we’ve said to ourselves at one point.
Knowing what FOMO means is important because everyone needs to know that missing out isn’t the end of the world. In fact, dwelling on it can do you more harm than good. FOMO can cloud your judgment and force you to make financial decisions that you’ll end up regretting.
FUD has a similar effect. Fear, uncertainty, and doubt refer to all the noise that non-believers of crypto will try to pressure you with. “Bitcoin is a bubble,” “Bitcoin is a scam,” and “Bitcoin suffers from technical problems” are among some of the phrases you’ll hear from people trying to spread the FUD. The motives may always be different and people may not even be spreading the FUD on purpose, but the effect is real and if you succumb, you can make some poor financial decisions in the long run.
These concepts are further pressurized by Bitcoin’s volatility. Because of its ability to spike and dip at rapid paces, BTC’s price is what drives FOMO and FUD.
Figure out your goal
Before you pull the trigger and spend some of your hard-earned money to buy some Bitcoin, you first need to ask yourself: why do you want to get into the space?
Your goal will make all the difference in determining when to buy. If you’re using BTC as an investment opportunity—which is what most people get into it for—then you can try “buying the dip.” This is a common phrase investors use, referring to the strategy of buying an asset when its price is low. It’s worth noting that there are a ton of other trading strategies out there, so don’t limit yourself to this one.
On the other hand, if your goal is to purchase a good or service, it doesn’t really matter when you buy. Since you’re using BTC for its original purpose of being a “peer-to-peer electronic cash system,” its price is irrelevant. You could buy Bitcoin with credit card right now, use it to pay for a good or service, and convert it back into your preferred fiat so that its price doesn’t fluctuate that heavily.
Once you do your research and figure out what your goal is, the rest is easy. With Bitcoin being over 12 years old now, the community is bigger and more passionate than ever before. Several exchanges and marketplaces have even popped up to make life even easier by allowing you to get a free Bitcoin wallet after signing up.
Research minimizes risk
Like any other investment, going into Bitcoin blindly is a good way for you to lose some money. Make sure to research what it is, the technology behind it, what you can use it for, and how to secure yourself from bad actors in the crypto space.
Generally speaking, the more you know about Bitcoin, the more sound your decisions will be. In this space, it’s practically impossible to completely eradicate the risk. The only thing you can hope to do is to minimize it. By doing your homework, you minimize the risks in big ways. This, in turn, keeps your money safe—and that’s what it’s all about, right?