We live in a very dynamic world. Ours is a rather fascinating part of the galaxy. It just so happens that the
human nature is rarely satisfied with old ways of doing things thereby devising newer and more efficient
ways of accomplishing objectives. One could ask when is the right time to buy bitcoin in Nigeria?
Take money for example. Back in the days, the medium of exchange like cowries, gold and the likes were used before the arrival of money. Then banknotes and coins made an appearance, before being later replaced by credit cards.
Credit cards made it unnecessary for folks to carry money around and were hailed for their convenience. Bitcoins and other cryptocurrencies can be seen as just the latest step in the evolution of money. They have been similarly hailed for making the use and transfer of money smooth as silk, speedy, anonymous and incredibly convenient.
So, what is Bitcoin? It is simply a virtual currency that unlike our local Naira and Kobo cannot be seen touched, felt or sprayed to dancers at our infamous owambe parties. It, however, has much of the attributes of real currency. This, it can be bought, traded, and transferred.
A detailed explanation of precisely what Bitcoin is does not fall within the purview of this article. Instead, we are here to explain the best time for buying Bitcoin. And yes, there’s the best time for buying this virtual currency, just like there’s the best time for doing anything in life.
Economists Have Their Say
A few economists from Yale University were tasked with finding out the perfect time for buying Bitcoins. These two smart fellas soon came up with a method of predicting the price of Bitcoin by taking into account how it had behaved in the past.
The duo of Aleh Tsyvinski and Yukun Liu went through seven years of Bitcoin data while figuring out how to use this data to predict Bitcoin’s future price. Their research showed that Bitcoin just like other cryptocurrencies are totally distinct from commodities, currencies and stocks. This difference is based on the factors that affect their price movements.
Once the entire research of the two professors above was distilled into words you and I could understand without getting a migraine, it turned out that Bitcoin once set on a path tends to maintain its movement. At least in the short term. Thus, if the price has been going up lately, then it is likely to keep going up and vice versa.
So, in case the value of Bitcoin has appreciated like 20% in a week or so, there is a great likelihood that the value will keep going up. In that case, it is a good buy.
The Bitcoin Weekly Effect!
Are there specific days that Bitcoins should be bought? It does appear so. Data from CrocoSource shows that on average the price of Bitcoin is lowest on Sundays and Mondays.
This might be due to decreased demand. As well as the fact that on these two days, most folks are simply too busy chilling out and letting go of the stresses accumulated over the previous work week to even think of buying or selling Bitcoin.
Since prices are so low on Sundays and Mondays, this might well be the best days of the week to buy Bitcoin. However, the highest days for Bitcoin prices tend to be Fridays and Saturdays.
Also, most experienced Bitcoin traders know to dicey to buy or sell Bitcoins at the beginning and end of the month, as this is when most salaried earners are paid. Some of them wish to impress their friends by buying Bitcoin once they receive their wages. This, of course, drives up prices.
When Is The Perfect Time To Buy Bitcoin?
Well, that is a really hard question. We shall, of course, try to answer it as best as we can. So, when Bitcoin came into being, practically no one paid any attention to it. Then it suddenly caught the attention of quite a few people and the price absolutely skyrocketed.
Since then, the price tends to rise really fast like an over-speeding bullion van, before slowly falling and eventually stabilizing. Given the above, it might be best to buy when the prices are relatively low and aim to cash out when the prices have risen enough to more than cover the cost of purchase.
Worth noting is that the price of Bitcoin can be affected by global events. This is not all that surprising given that it is a global currency.
Also worth noting is that looking for the best time to buy Bitcoin makes it appear that the overall aim is to make quick returns like a speculator and vanish. This is definitely not what Bitcoin is all about. Bitcoin is a novel form of money, rather than a money-doubling scheme that would make it possible to strike it rich and buy up some real estate on the moon!
How Best To Buy Bitcoin
Rather than looking for quick returns, readers are advised to do the following:
This involves learning everything there is about cryptocurrency. This is practical, doable and beneficial. Learning all about Bitcoin does not require major expenditures of time and other resources. It can as well be easily accomplished by visiting www.nairadirect.com which is an established Nigerian Bitcoin exchange home and check out the tons of very useful information they have to offer.
Buy When You Can
Sure, there are days when the prices of Bitcoin tend to be low. However, we cannot really recommend buying at such times. Nevertheless, it is best to buy when the mind is fully prepared for it.
Buy From A Reliable Source
It is important to regard buying Bitcoin as a long term investment. Therefore, it is proper to invest only what the mind is comfortable with losing. It is essential to always buy from a reliable source when you want to buy Bitcoin because there are lots of scammers in the Bitcoin market most of them posing as real Bitcoin traders. Nairadirect is totally safe and secure.
There is really no best time to buy Bitcoin in Nigeria. While speculators can make a killing by taking advantage of the up and down movement of its price, a better decision would be to regard it as a long term investment and act accordingly.