Your capital is at risk
“Buy the dip, sell the news” is a famous phrase in the world of investing, that recommends investors to buy when the price is low and then sell their investments when they hear about it on the news. The reason why this happens is because by the time you hear about it on the news, the price of the asset will be much higher than it probably should be.
The goal for every investor is to identify stocks, or in this case cryptocurrencies, that will most likely be on the headlines of the biggest news sites. This means that, once on the news, the stock price will go up and the investors can sell for a nice profit. It’s no secret that these past few months the Bitcoin price has been experiencing a lot of volatility with a slight downtrend, however, several expert cryptocurrency traders have reason to believe that is all about to change, and that this is the best Bitcoin price point to buy. Here is why.
By now you’ve most likely heard about the Bitcoin Halving and have an understanding of what it is. For those who don’t, the Bitcoin Halving is the moment when a chain of 210,000 blocks is mined, leading to the 12.5 BTC reward halving. The next such moment is expected to take place on or around the 12th of May 2020, and investor behaviour is suggesting that this will lead to a substantial increase in the price of the world’s largest cryptocurrency. The 50% decrease in supply is expected to shoot the price of Bitcoin to the next level – a repeat of what happening in the previous halvings back in 2016 and 2012. When demand is high and supply is low, the price goes up.
The figure below demonstrates this perfectly. The green line is the price of 1 Bitcoin along the year 2016, which is the year where we had the previous Bitcoin halving.
In 2016 alone, the price for 1 Bitcoin went from $623 to $1860. Fast forward to today in 2020 and the Bitcoin price is bouncing up and down between $8000 and $10000. The same can be said for the year 2012 where the Bitcoin price went from just $11 to $350.
The historical surge in prices is what’s fueling the hype and that’s exactly what traders believe they can capitalize on.
The lower reward miners get coupled with the increased cost of mining, results in fewer miners creating new Bitcoin. At the same time, demand for the cryptocurrency continues to increase, both as a speculative asset, but also as a payment mechanism. This increase in demand is met by a decrease in supply; a perfect recipe for BTC’s price to shoot up.
If you’d like to jump on the wagon you need to consider your risks. You can start off your journey with as little as $250 worth of Bitcoin but remember, never invest more than you can afford to lose.
Getting started is quite easy if you follow these steps:
When you open the trade, you can navigate to your portfolio and there is where you will be able to see how your trade is performing. You can then close the trade and sell the Bitcoin you just bought whenever you want.
Some things to keep in mind are: