When To Buy Bitcoin
For many people, the first step to being introduced to Bitcoin, I mean really introduced, is by purchasing bitcoin.
It doesn’t matter if you are a high roller and purchased an entire bitcoin, or if you only dipped a toe in and purchased something like five or ten dollars worth, the chances are very likely that you mostly cared that your investment would increase over time. The chances are even more likely that you’d prefer that investment to increase in a short amount of time.
There’s no doubt that people in this space are desperate to get their hands on any kind of information that will lead to their investments’ increase in value.
That being said, here is one tool that could help you get a better idea of a good time to buy or sell your bitcoin.
VIEW VIDEO HERE^^^
There are many pricing models that you can use to determine if bitcoin is over or under priced. I will list them at the end of this video for those of you who are interested.
In fact, I encourage you all to research many of them so you can have a well-rounded understanding of how each of them differs and why.
For the purposes of this video, and in order to keep this one succinct, I’ll be focusing on the Mayer Multiple. It is a pricing model developed by Trace Mayer. For those who may not know, Trace was one of the first to spread the word about Bitcoin and blockchain technology and continues to be a prominent voice in the space that advocates for monetary sovereignty for all.
Trace came up with a method for determining the most beneficial timing for purchasing bitcoin.
It’s called the Mayer Multiple and to put it in a very basic way, it’s calculated by dividing the current price of bitcoin by its 200-day moving average.
Key factors of the Mayer Multiple to be aware of:
- It is affected by the rate of change of the bitcoin price, you can see this when viewing the data for the bitcoin bubbles of 2012 and the most recent pop in 2017.
- Uses a 200 DMA- meaning it doesn’t take into account data older than 200 days.
- Uses strict TA (technical analysis)- meaning it does not account for outside influences (like Bitcoin ETFs)
Many of these types of models reference Metcalfe’s Law. There is a lot to be said and learned from thanks to graphs depicting Metcalfe’s law. This law certainly demonstrates how the network effect has played a role in the price movements of Bitcoin in the past.
It’s something that is deserving of your attention as we move forward with this new technology.
If this one sparked your interest, I’ve posted links for more information about the Mayer Multiple and along with some other models you should explore.
*Of course, I can’t make a post about this topic without the friendly reminder that buying and hodling works as well ;) *
Additional Reading/Links:
Trace Mayer
The Mayer Multiple
Compare Other Pricing Models
My recommendation is that some one can proceed to buy at his own well analysed and perceived bottom price of the bitcoin price and hold for some good time. Investment is a long term activity. People who invested in bitcoin in 2009 congratulations to them as now are enjoying there billions of profits.
People should just be strong hearted, be well equiped with knowledge about crypto before taking the step to invest.
There is a great revolutionary exchange called "Digitex" Its a transactions free exchange with its native crypto DGTX. Its a game changer of the future crypto trading market. I have published quite a number of blogs about it. Hope you can check it out perharps it might be something that will be of great value to your future crypto trade dealings.
I will apprecite your feedback to it. Questions are highly welcome.
Otherwise thanks @heiditravels for sharing.
Great post, Thank you.
Do not buy BTC now, rather, buy it when it goes back down to 2-4k.
My two cents ;)
Good luck to your project guys.
The method and references you have mention is good and valid, but after all only big players manipulate the market with the help of media.
For example last year many financial institution given statement against the bitcoin and they are have largest stake holder of bitcoin.
In Jan 2018 JP Morgan CEO Jamie Dimon regret the the calling Bitcoin a fraud. this mean he given his previous state to fall the price of Bitcoin.
A good method for the L O N G R U N is to buy when you have some savings and NO plans to use it for years...Buy small amounts every now and then....Do not touch it!
Got my first 20 BTC back in the beginning of 2012 as a commision for a project. My friend advised me that his friend told him, that those coins are "the future"...
Soooo despite of this I was very happy to sell them for $5 each... :}
Well after that in 2013 I was already totally hunting for more :)
Now we're here steeming!
Good Luck, all! ;)
Amazing methods for TA analysis. While I am not at all familiar with any of them, I do think TA plays an important role on here just as much as they fundamentals do. However, like someone here already mentioned, there is a lot of manipulation in the market already, and it'll be sad to see bitcoin go even lower. I hope it doesn't. From indications, it's hard to put the genie back into the bottle and I think that some companies and firms fancy the idea of tokenization and blockchain. Hence, we might see btc thrive afterall.
I shall share your post on my blog to allow for more eyes to get to see them as well.
Also, as a side note, I think you might be interested in Digitex. They're going to build a futures exchange for cryptocurrency with no commission fees.
Wrote 2 posts about them already. You can learn a lot about them here and here if you have the time.
I shall be reading.
I feel its important to mention that one must be clear about why they want to buy Bitcoin, or any other type of crypto. Wanting to use Bitcoin for a purchase on Amazon via Purse.io requires a different mindset than using it as an investment vehicle. To take it a step further in the investment area, which time frame are you working with- are you a Trader or Investor? Each come with its own set of entry and exit criteria. My point is this: Know yourself 1st.