Is Now a Good Time to Buy Bitcoin
Bitcoin, a pillar of the modern financial landscape, entices investors with its potential for substantial returns. Whether you’re a frequent investor, just getting started, or a complete novice, there is no denying that Bitcoin is everywhere. However, before embarking on your cryptocurrency journey, it's crucial to ask, “Is now a good time to buy Bitcoin?” This decision hinges on your grasp of Bitcoin's value, market dynamics, and external influences, which are crucial to making informed investment decisions.
Understanding Bitcoin
Bitcoin is a decentralized digital currency that offers an alternative to traditional monetary systems. Since its inception in 2009, this form of cryptocurrency has experienced substantial price fluctuations that reflect the volatility of cryptocurrency. At its lowest, it was worth $340-530 in April 2014; in March 2024, it hit a record high of $73,664. The projections for Bitcoin are set to continue rising throughout the year due to the upcoming halving date.
What is Bitcoin Halving
Bitcoin halving occurs every four years and is set to happen in mid-April of this year. Halving dates doesn’t impact Bitcoin holders but can benefit its overall value. The halving process is related to Bitcoin mining, which is the process where transactions are verified on the blockchain, and Bitcoin can enter circulation on the net. However, the number of Bitcoins that can be mined is limited to 21 million. Currently, there are 19.6 million in circulation, and only 1.4 million yet to be mined. When halving occurs, the Bitcoin protocol cuts the number of coins awarded to miners in half, with the next halving giving them 3.125 Bitcoin. This steep drop in production will cause Bitcoin to appreciate. Halving will continue occurring every four years until the 21 bitcoins that make up the total supply are mined, which is expected to happen in 2140.
Factors that Influence the Cryptocurrency Market
Numerous factors influence the cryptocurrency market. Keep reading to learn more.
Market Dynamics
Supply and demand are significant factors that determine the value of Bitcoin. Market dynamics are also influenced by investor sentiment and market liquidity. To see a live tracker of the Bitcoin market, click here.
Regulatory Environment
Changes in the regulatory environment across countries also influence the overall market’s accessibility and attractiveness. Policymakers and investors have not always agreed on cryptocurrency regulations, as seen with the Digital Asset Anti-Money Laundering Act of 2022, which provides specific rules for crypto but fails to address blockchain as a global activity. Staying current on the regulatory environment can help you answer the question, ‘Is now a good time to buy Bitcoin’ because it will help provide a more holistic view of the cryptocurrency landscape.
Technological Updates
Innovations within the cryptocurrency network, such as enhancements in security, also impact the overall value of Bitcoin.
Economic Indicators
Global indicators, such as inflation, economic hardships, and monetary policy changes, can impact Bitcoin's overall market value. To gauge the overall market, it’s imperative to remain current with government regulations, technology updates, and the general economy's health.
Current Bitcoin Market Conditions
Analyzing current trends and historical data is essential to understanding the current Bitcoin market conditions. The market’s current state offers insights into potential future movements and any critical dates, such as the halving. As we’ve stated above, cryptocurrency isn’t the most predictable, but by conducting research and staying up to date with current trends and movements, it becomes more intuitive to determine when to invest. Plus, right now, Bitcoin is predicted to continue rising so right now is an excellent time to buy Bitcoin.
Risks Involved in Cryptocurrency Investment
There are risks to cryptocurrency investment, but as the industry continues evolving, the rewards outweigh the risks.
Volatility
The price of Bitcoin can dramatically increase or decrease within a short period, making it a less concrete investment for many.
Security Concerns
There are potential threats to cryptocurrency, such as hacking and fraud, which is why staying abreast of technology advancements is critical in ensuring that you are safeguarding your data. To help combat this, we’ve compiled a list of the most common Bitcoin scams to ensure you can avoid them. Click here to learn more.
Legal and Tax Implications
Varying regulations across jurisdictions can complicate the investment process for investors. However, to minimize taxes on Bitcoin, try to hold on to it for more than a year before selling. Short-term capital gains taxes are higher, so if you can wait a year before selling, your overall tax rate will go down.
When considering Bitcoin tax, it’s important to remember that you will owe taxes on any amount of profit or income, even $1, and you will still owe taxes on the crypto you traded. The tax amount is determined by the fair market value at the time of the trade.
Despite the risks involved with Bitcoin investment, there are numerous opportunities, including high return potential, diversification of investment portfolios, and the use of Bitcoin as an inflation hedge.
Answer ‘Is Now a Good Time to Buy Bitcoin’ and More with Pelicoin
Now that we’ve determined that it is an excellent time to buy Bitcoin, we can discuss how to get started! The best way to buy Bitcoin is through Pelicoin ATM. Pelicoin is the most secure cryptocurrency ATM network in the Gulf South, with locations throughout the area that are convenient for you. We have 30+ machines that allow you to turn cash into crypto quickly. To use our ATMs, all you have to do is click ‘buy coins,’ select the amount you want to convert, provide the answers to the prompts on the screen, and select how you want your crypto. Investing has never been easier than with Pelicoin. For more information on how to use our ATMs, click here.
If you are using a Pelicoin ATM and have any questions, please call 855-PELICOIN or email us at support@pelicoin.com, and a member of our team will be happy to assist you.
As we noted throughout the blog, staying up to date with the latest trends and updates in the market is crucial to finding success through your investments. To ensure you are aware of the latest industry trends and updates, be sure to check out our blog.