It’s time to start buying Bitcoin, says Forbes

In an article published last Wednesday (30), Forbes points out that it is time to buy Bitcoin. According to the author, Clem Chambers, founder of ADVFN, the best strategy right now is the DCAEnglish abbreviation for average price in dollars (dollar cost average).

Chambers explains his thinking, noting that Bitcoin’s halving is scheduled for April 2024, but it could take some time to have an effect on the market. Therefore, this could be the perfect time for a more conservative medium-term strategy.

“If the effect of less supply takes some time to build up in price, as it did last time, a year of DCA seems like a solid plan.”

Bitcoin's halving has propelled the cryptocurrency to enormous heights, and many investors believe this pattern could repeat itself.  Source: Stockmoney Lizards/Reproduction.
Bitcoin’s halving has propelled the cryptocurrency to enormous heights, and many investors believe this pattern could repeat itself. Source: Stockmoney Lizards/Reproduction.

What is the DCA Strategy?

The DCA strategy consists of making monthly contributions in Bitcoin or any other asset regardless of its price. While the investor misses opportunities to buy cheap BTC, he also avoids buying the top and sticks to an average price, giving rise to the name DCA.

More importantly, it doesn’t require skill with analytics and wasting time on these details, just dedication. Moving forward, the strategy has also been positive, even for those who started these contributions at $69,000.

“An investor assigns himself a budget, say $12,000, and buys $1,000 a month from now until this time next year”explains the author of Forbes, noting that the coming months will be difficult for predictions. “DCA will at least provide a reasonable entry price into what is to come for those who believe Bitcoin will rise again, whether it goes to $100,000 or $1 million.”

While Clem Chambers pointed to monthly contributions of $1,000, another positive point of the DCA is that each investor can choose how much to invest. That is, they can be smaller purchases, say R$50, and the percentage profit will still be the same.

2024 promises to be a great year for Bitcoin

In addition to the halving, the focal point of Forbes’ article, there are other major events that could lead to Bitcoin continuing its 2023 all-time high in 2024. The most important is the possible approval of a Bitcoin spot ETF in the US.

While the SEC delayed its decision on seven requests this Thursday (31), something the market had already predicted, the Commission has until March 2024 to respond to requests from BlackRock, Fidelity and other Wall Street giants.

It is possible for Bitcoin to immediately rise when an ETF is approved, but large investors should enter the market gradually and, as with the halving, the real rally could take a few more months.

Finally, there is one more point to analyze: the election race in the US. Scheduled for November 2024, several pro-Bitcoin presidential candidates will be in attendance, some with real chances of winning. In addition to free marketing for the cryptocurrency, this could also put pressure on US regulators to be more industry-friendly.

Source: Live Coins

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