The Bitcoin Dip: Buy, Sell, or Hodl?

Buying Bitcoin is an art form much like investing as the value of the coin regularly fluctuates throughout the day

One of the biggest questions that any potential investor must ask themselves before investing in Bitcoin is which method to utilize when looking to maximize their returns.

Choosing the right moment to buy, sell, or HODL one’s coins can be the difference between major returns or losing out.

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While this article does not aim to provide investment advice, it will attempt to outline some methods to use when deciding on when to enter or exit the crypto market.

Getting Started: The Basics

As a first step, you will, of course, need to select an appropriate exchange for your needs and ensure that you are dealing with a legal company that is allowed to operate in your country.

Also be sure that you have a secure wallet for storing your currency, as this can mean the difference between keeping or losing your coins in the event of a hack.

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Once you’ve chosen a safe exchange and a secure wallet, the next step in the process will be to decide how you will be investing. Ultimately, different strategies appeal to different investment styles and there is no one way of going about it.

Regardless of your personal investment philosophy, there are two major strategies from which all others stem. On top of selling and hodling however, there is also the understanding of when the best time to buy a given currency is, and how to ensure that picking the correct time to purchase said currency can give you great returns and ensure that you’re profiting.

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Buying Bitcoin is an art form much like investing as the value of the coin regularly fluctuates throughout the day. As such, picking the right time to buy said currency is key. In the longer term, the current value of Bitcoin is lower than it has been for the last several months, so purchasing the currency right now could be an appealing option.

Waiting for price fluctuations at a given moment can be risky, particularly if the currency may fall and rise in value very quickly. However, the aftermath of a major crypto hack could be an interesting prospect given that the confidence in the currency will inevitably fall in the wake, driving the value of Bitcoin down, at least temporarily.

The art of investing and HODL

The next strategy in terms of investment is HODLing on to coins. In effect, you make an investment into a given cryptocurrency and then sit on it while you wait for its value to rise and then sell on the currency for a profit in the future.

This method is relatively simple and is a passive approach to investing as they only work required of you is to choose the right time to purchase the currency and look at the point where it has peaked. This is a longer-term option and given that Bitcoin is projected to rise and rise in value on a regular basis in the future, this may be something worth exploring for a longer-term investment opportunity rather than a shorter term one.

The other strategy is to simply look to sell your coins for profits on a daily, weekly or monthly basis. This method however, requires you to monitor the crypto markets closely due to their volatile nature, and as such it is just as easy to lose money via this method as it is to gain it.

You should also bear in mind that buying and selling cryptocurrency is not actually a quick process at all and it can take several hours or even days to verify a given transaction, depending on the volume of people using the site and the amount you’re attempting to buy.

Ultimately, using a combination of the methods and having various amounts of the coins is something that numerous individuals looking to profit would undertake. Whilst, no method is fool proof and there is no right way to invest, by researching and diversifying is an option that would provide you with a strong chance of making sizable returns.

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