Bitcoin crossed ten lakhs INR. That’s an achievement for Bitcoin as more and more people are investing in it. However, there is always a question that everybody asks despite the current price, “Should you buy Bitcoins now?”
If you are new to cryptocurrency or Bitcoins, answering this can be hard because you have no understanding of how it works. For that, you might want to get started reading our Bitcoin guide.
For seasonal traders or traders who have already invested in Bitcoin, this is a completely different question, as might be looking to re-enter the market or increase their portfolio value.
Before we start and try to answer it from the perspective of two different buying personas, let’s understand the golden rule, i.e., “Always buy at the DIP.”
You may buy Bitcoins now if
- You are holding long-term. Long-term holders will always have the advantage compared to day-traders or short-term holders. BTC technology has shown great promise and the positive news surrounding it is driving the price high every single day.
- You are looking for an entry point. Bitcoin is becoming popular every single day and this lure new traders or newbies who are interested in it. For new buyers, there is no right entry point. All you need to do is buy and hold.
- You understand the market and the risk associated with it. If you are a seasoned trader and know what you are doing, i.e., understand market deeply, buying BTC at ten lakhs can be considered “moderate risk.”
Also read: How to buy Bitcoins in India
Do not buy Bitcoins if
- You have limited resources at your hand and don’t have the appetite to take risks. Bitcoin is highly volatile, and we have seen the price jump from $13K to 14$ in 3 hours. The same can happen during a drop.
- You already have a good amount of BTC. If you do, it is always a good idea to wait for the dip. The bull run needs correction, and you might want to wait for the right time to buy.
- You are worried about RBI stance on Bitcoin and other cryptocurrencies in India. Read more about it here.
What made the Bitcoin prices to go up so fast?
You might be thinking what made the price shoot up from 8 lakhs INR per bitcoin to 10 lakhs INR per bitcoin? Let’s list them.
- Futures: Bitcoin contracts gets a green light from the US-based Commodity Futures Trading Commission (CFTC)
- The Lightning Protocol: A new protocol on top of the blockchain that is currently being tested. This will improve the network and overall performance.
You can read more about it here.
So, are you investing in Bitcoin? Let us know in the comments section below.
Disclaimer: Do not take this as any financial advice. #DYOR