Some of the data show that the current adoption of Cryptocurrency is at the level Internet was in 1997. Even if it is not, we can still only assume massive rise in the adoption of cryptocurrency in the coming years and decades. This article is a guide to when and how to enter the market, or in general, when to buy coins:
1) For HODLers
If you are a real HODLer and you are planning to hold for many years or decades to come, it doesn't really matter at what price you are buying. You are already early to the party. But if you have more time to spend and want more profits, read further
2) Dollar Cost Averaging (DCA)
A pretty common method that most people use, DCA means investing a fixed amount of money at regular intervals to reduce the impact of the volatility in the market. This is a good investment plan if you have a regular salary, and are planning to invest for long term. Also, in my personal analysis, I have found that investing on a weekly basis, and especially on Sundays have been yielding better results (apparently, the Weekend Dump is real)
3) Bear market lovers
Many long term HODLers make the most profits from a Bear market by investing heavily in coins with good fundamentals. Bear market is the only time when you get coins at a massive discount. So why not buy then? But the problem lies when you can't actually predict the bear market bottom. So, a combination of DCA and Technical Analysis in a bear market could probably be the best strategy!
4) Investing at reversals
As I have mentioned above, it is very hard to time the Bear market bottoms. So a wise method would be to buy at signs of reversals, such as:
A) Reversal in MACD
B) Oversold RSI
C) Reversal in Ichimoku cloud
D) Bullish cross over of 50 and 200 weekly EMA
5) Buy the dips
Similar to DCA, but instead of buying on a specific day at regular intervals, in this method, coins are bought at every dips, say for example, at every 10% dips. Not a bad strategy to maximize profits during a bull run
6) Technical Analysis
Using technical analysis, and especially support and resistance levels can be used to time the buy signals. Any break-out from a wedge or triangle, or a resistance level is a sure Buy signal. Combining it with other common indicators such as RSI, Divergences, MACD and EMA/MA support levels is a good method.
BONUS POINT: Do not FOMO in (Fear Of Missing Out)
Always stick to your strategies and don't let your emotions manipulate you into buying a rising coin. It often produces more losses than gains. And always remember: "whatever that rises, ought to come back!"
PS: Not Financial Advice
Thanks for reading till the end
Hope it helps
Cheers 😉