I wouldn't worry about trying to time price action on Bitcoin. This is like any other extremely risky investment, you buy with amounts of money you could throw away without affecting your financial situation or retirement. You buy on a weekly basis what you can afford and what happens happens.
There isn't enough price history to trade the technical side and the fundamentals seem to change on a weekly basis. This is just an opportunity to get in during Bitcoins infancy.
You're gambling on an idea that can be crushed by the world governments. It's as easy as making it illegal for legit merchants to accept Bitcoin to completely crumble the cryptocurrency dream of being something big one day.
It's all speculative till we see how the American, European and Asian governments respond to this. With growing concern over the US government pushing internet censorship through ISP's and their treatment of any threat to the USD (see oil, USD reserve status, war), I would not be investing any amount of money I would lose sleep over. If you're combined household income is around $100k, you have a mortgage, 2 cars and a kid... throwing $5000 at this in one shot is not recommended. Purchase $100/week for the next 6 months. This could go down to $50 by next week or it could go to $1000... making a large investment in one shot that keeps you up at night is doing you no good.
This is probably the best situation for averaging out your buying price. Even the pros do it. Invest in tranches. They'll break up a trade in 4 chunks and buy over a week or so, reduce risk. The volatility of Bitcoin is too large to pick one entry. Don't be shy.. take $100 today and buy. Then next Friday do the same regardless of price. Don't beat yourself up if it's at $550 and you missed all those gains, it could have just as easily went to $200.
There isn't enough price history to trade the technical side and the fundamentals seem to change on a weekly basis. This is just an opportunity to get in during Bitcoins infancy.
You're gambling on an idea that can be crushed by the world governments. It's as easy as making it illegal for legit merchants to accept Bitcoin to completely crumble the cryptocurrency dream of being something big one day.
It's all speculative till we see how the American, European and Asian governments respond to this. With growing concern over the US government pushing internet censorship through ISP's and their treatment of any threat to the USD (see oil, USD reserve status, war), I would not be investing any amount of money I would lose sleep over. If you're combined household income is around $100k, you have a mortgage, 2 cars and a kid... throwing $5000 at this in one shot is not recommended. Purchase $100/week for the next 6 months. This could go down to $50 by next week or it could go to $1000... making a large investment in one shot that keeps you up at night is doing you no good.
This is probably the best situation for averaging out your buying price. Even the pros do it. Invest in tranches. They'll break up a trade in 4 chunks and buy over a week or so, reduce risk. The volatility of Bitcoin is too large to pick one entry. Don't be shy.. take $100 today and buy. Then next Friday do the same regardless of price. Don't beat yourself up if it's at $550 and you missed all those gains, it could have just as easily went to $200.
Great advice, said it much better than me and it's exactly what I'm doing. I'm investing about 2-3% of my income on a weekly basis.
Yeahp, very nicely put!
