When Is The Best Time To Buy Bitcoin? Dollar-Cost Averaging Pays!

Many people ask "When is the best time to buy Bitcoin?" or "Will the price go down? I want to buy, but should I wait?"

Truth is, the fluctuations in Bitcoin, and cryptocurrency in general, is difficult to know. Unlike stocks, there's no board of directors that will provide frequent updates on the goings-on with the company. Unlike fiat, your ordinary currency, there's no country or government or economy to base the probabilities. If USD went up against the EUR, does that mean Bitcoin price will be affected? Maybe, but really it doesn't even care whether a WW3 is imminent.

 So, after that lengthy paragraph, the most trusty investment plan for Bitcoin is called Dollar Cost Averaging, or Cost Averaging if you're not using dollars.

With the rollercoaster highs and lows of bitcoin, Dollar-Cost Averaging Pays.

Dollar-cost averaging (DCA) is a wealth-building strategy that involves investing a fixed amount of money at regular intervals over a long period. This type of systematic investment program is familiar to many investors, as they practice it with their 401(k) and 403(b) retirement plans. Dollar-cost averaging is carried out simply by investing a fixed dollar amount into your cryptocurrency of choice at pre-determined intervals. The amount of money invested at each interval remains the same over time, but the number of "coins" purchased varies based on the market value of Bitcoin at the time of a purchase.

When the markets are up, you buy fewer coins per dollar invested due to the higher cost per coin. When the markets are down, the situation is reversed and you purchase a greater of number of coins per dollar invested. It's a strategic way to invest because you buy more when the cost is low, so you get an average cost per coins over time, meaning you don't have to invest the time and effort to monitor market movements and strategically time your investments. PS: With the popularity of this post, I will be preparing another one with examples to better illustrate the value of DCA.

[FOREX TIP] AUDUSD Weekly Forex Forecast – 23rd to 27th Oct 2017

The AUDUSD recent sell-off has the potential to extend lower and retest the 0.7730 support level. A break and a daily close below this support can also put in motion a much bigger sell-off. On the upside the 0.7886 remains our key resistance level. Only a break above 0.7886 can put the bulls in trouble. The stochastic indicator is in oversold territory, so early in the week we can expect more congestion before the big move to happen. A break and a daily close below 0.7730 will extend the downside even further as the next available support level only comes in at 0.7620.

The Australian economic calendar has scheduled some big risk events. Monday we have the RBA Annual Report while on Wednesday we have the inflation CPI figures. Last but not least on Thursday we have the Trade Balance figures that we need to keep an eye on.

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AUDUSD Weekly Forex Forecast – 23rd to 27th Oct 2017

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[FOREX TIP] USDCAD Weekly Forex Forecast – 23rd to 27th Oct 2017

USDCAD Weekly Forex Forecast – 23rd to 27th Oct 2017

The USDCAD has managed to stay above the big psychological number 1.2500 and had quite a strong bounce. The break above 1.2600 has opened the door for more USDCAD strength. However, we have run too fast as we already reached oversold conditions on the stochastic indicator. This suggests that early in the week we might see a retracement before the current bull run to have another chance to produce more USDCAD strength. On the upside the first level of resistance only comes at 1.2663 and we have a good chance to reach that level. Only a break below the big round number 1.2500 can suggest that the bulls have lost control of this market. A break below 1.2500 will set the stage for a retest of daily support level 1.2400.

In terms of risk events the Canadian economic calendar will bring the BOC interest rate decision. The BOC has already raised interest rates to 1% through 2017 and continued to have a hawkish stance. However, no more rate hikes are expected this year, which can draw investors away from the Canadian Dollar.

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USDCAD Weekly Forex Forecast – 23rd to 27th Oct 2017

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