In 2008, we first heard about the digital currency – Bitcoin. It was the official start of Cryptocurrency in the market with its advent. The whitepaper defined the coin as a revolutionary piece, and it did help in introducing the best of the details of the technology that ever came into the market. From the very first day, we heard that the coin is a decentralized currency, and it will help in enabling the future of smart contracts that further helps in carrying out various P2P transactions. It did help in developing the entire industry of Defi.
However, as time passed, it took a few years for the coin to become stable with the most volatile assets that seemed to exist in the market. There is no evidence of the fact that things are changing at any point in time. The price then continues to go up and down in the market, which makes the coin very volatile. So we will check about the debate, is this the best time to buy Bitcoin, while for details visit the site NFT Edge.
Is this a good time to invest in BTC?.
Before you put your money in this currency, it is always good to look at the previous market cycle. Once the BTC rally reached in 2013, we saw the coin price going to 200 USD from 1200 USD, which was around 85 per cent of the decrease in value. The rally in 2017 was an all-time high for BTC, reaching 20K USD. However, soon we saw the currency’s value go down by 3200 USD, which was around 80 per cent of depreciation in the market. It took another two years for the coin to return to the cost of about 69K USD, and then in the mid of 21, the cash came close to 30K USD. Again at the year-end, the currency reached around 70K USD. Finally, after a few weeks in 2022, we saw the coin value around 40K USD.
So, we see the price becoming extremely volatile at such a helm of affairs, and the best way to procure it is via dollar-cost average. The dollar-cost averaging is an investment strategy wherein you can find too many individuals dividing the total amount they wish to invest and making the required purchase over time instead of periodically buying a big-size purchase. For instance, we can find Bitcoin price dropping to around 20K USD once the investment went to approximately 45K USD. So, we see the investor now buying the price decreasing and then reducing the average buy with a price. Once you know the price is declining, you can think of buying it at a lower cost, while as you find the coin gaining more price, you can think of investing more. In other words, you need to know to buy coins when the risk is low and sell away the cash when the reward is higher.
What defines the value of BTC?
If you look at it in any literal sense, the value of BTC is defined as a network effect, which means that the value of the coin is derived from the way Bitcoin trading works. The coin’s price is determined by the value and demand for the cash. As more and more people buy Bitcoin, the price goes up, and when the supply becomes stable, Bitcoin is among the first crypto created. It helps in initiating the entire industry of decentralized finance. Several block rewards and market sentiments play a vital role in the coin, and everyone seems to be charging and allowing the supply in the circulation that is affecting the price.
The reasons why Bitcoin is moving?
When we look at how the assets move in the market, is it vital to consider the psychology behind all these markets? Traditionally when you see Bitcoin rallying, decentralized finance and digital money would gain media attention. The development stage then follows the attention. At this point, you can find too many more developers are building intelligent contracts that everyday individuals are now starting up to realize the importance and impact of Blockchain technology. Soon the development stage in the market brings in many more new technologies to make the cycle work effectively. So, this is how you can find things working. You can certainly try these things in this way.