Bitcoin is easily the most profitable investment, so far, since November 2020 bitcoin has yielded an approximate 29% in returns. In comparison other assets fall short, they shy away from bitcoin.
Clearly, bitcoin outperforms each and every last one of them. So, not investing in bitcoin is a no brainer. If you do decide to invest, here are three things that need checking before buying bitcoin.
What month will you be investing in? What quarter is it? What cycle or phase is bitcoin in?
Based on certain months of the year, bitcoin has performed better or worse. The below table will give you a perspective of monthly returns
This chart shows that the best performing months are April and November. Hence, investing in January, February, March, August, or September would yield maximum returns
Further modifying the monthly returns, we get the quarterly returns. Based on the below chart, we can also see that Q2s are usually the best and safest place with all green, however, that isn’t the case.
The best time would be to invest in the red days when the market is bleeding, this would maximize returns come quarters that are green. Hence, invest in red quarters and take-profit in green quarters.
Bitcoin, like most assets, runs in cycles of boom and bust. The best time to invest would be in a bear market.
The investment could be DCA [refer to this article for more detailed thoughts on how to DCA] and profits should be taken in bull markets. As of this writing, bitcoin hasn’t started the bull run yet, however, it could be in a pre-bull run [More on this will be explained in a separate article in the future].
Hence, even though the November month is half done, we can invest in bitcoin as we are awaiting a pullback. This could help in getting good returns in the upcoming bull run. So, before investing in bitcoin, it is advised to take a look at these 3 factors and then decide if it is the right time.