How to Invest in Bitcoin: I've Spent 5 Years Covering Crypto, and This Is the Strategy I'd Use Today
Yahoo Finance ·
The best way to invest in Bitcoin ( BTC -1.98% ) is with a long-term buy-and-hold strategy, preferably by accumulating during pullbacks. Bitcoin is extremely volatile, but it has historically followed four-year cycles based on its long-term price data. You're more likely to make a profit if you commit to holding it for at least five to 10 years. I've been covering Bitcoin and other cryptocurrencies since 2021, and I've invested in them since late 2017. After experiencing several bull and bear markets and seeing how investor sentiment changes during each one, I'd argue that the easiest approach is simply holding through the ups and downs. If you want to potentially reduce risk and increase returns, you can base your buying and selling decisions on where Bitcoin is in its market cycle. Although Bitcoin may seem completely unpredictable, its price has generally moved in cycles of about four years. The top of one bull market has been followed by the top of the next bull market about four years later. The same is true of bear market lows, which have also been separated by about four years. The table below provides the respective peaks and bottoms for Bitcoin going back to 2013.
DYAX Investor Sentiment
Bullish (Long) 39% · Bearish (Short) 61%
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