Imagine you're trying to get fit, so you hit the gym and lift the weights. But instead of focusing on your own health and what is best for you, you obsess over what everyone else is doing. Before long, you realize that you've wasted multiple workouts trying to imitate another person's routine instead of concentrating on your own goals and sticking to your own plan. Investing in Bitcoin can feel a lot like that. There’s a lot of noise to tune out, and every Bitcoin investment has its own unique properties. Some might catch your eye because of their market performance, while others might get your attention because they seem to be what everyone else is buying. But what you really want to do is find the Bitcoin that can help you achieve your investment goals. This article will help you do exactly that with the help of bitcoin supply and demand. We’ll cover the best Bitcoin to invest in right now, why each of them might suit your investment goals, and how to get started. By the end, you’ll have a clearer idea of what Bitcoin is best for you.
Bitcoin Magazine Pro's detailed Bitcoin analysis is a valuable tool for achieving your investment objectives. The insights provided in these data-rich reports will help you confidently identify the most promising Bitcoin to invest in so you can maximize returns and minimize risks for long-term financial growth.
Bitcoin Metric Breakout Teases ‘Inevitable’ 90% BTC Price Rally Next
Bitcoin may see a strong bull rally if one classic BTC price metric repeats a historical breakout. In one of its Quicktake blog posts on Nov. 18, an on-chain analytics platform flagged a rare golden cross for Bitcoin’s Puell Multiple.
Puell Multiple Nears BTC Price Breakout Line
If the Puell Multiple stages a rare breakout, Bitcoin bulls will benefit from an average BTC price surge of 90%.
Analyzing behavior over the past five years, it shows that the metric has crossed its 365-day moving average just three times. On each occasion, BTC/USD “experienced significant price surges.”
Understanding the Puell Multiple: A Key Indicator for Evaluating Bitcoin Mining Profitability and Market Cycles
“Puell Multiple helps us understand market cycles from a mining perspective,” CryptoQuant contributor Burakkesmeci said.
“It is a crucial indicator for evaluating mining profitability.”
Puell measures the daily value of mined Bitcoin against its 365-day moving average to provide insight into miner stability. When the value crosses the moving average trend line, it coincides with rapid BTC price gains.
Historical Performance of the Puell Multiple: Tracking Bitcoin Price Rallies Following Golden Crosses
- In March 2019, a Puell golden cross was followed by an 83% rally.
- January 2020 sparked 113% upside
- While the most recent cross in January 2024 offered 76% returns
“This data shows that after Puell Multiple settles above its SMA365, an average increase of around 90% in Bitcoin’s price has historically followed,” the post said.
What Happens Next?
CryptoQuant said favorable macroeconomic conditions help boost the odds of an inevitable rally. “All these data points and the macroeconomic framework suggest that a strong bull rally might be on the horizon,” it said.
Bitcoin’s RSI Signals a Bull Market Is Just Getting Started
As Cointelegraph reported, analysts now see Bitcoin’s most intense upside still lying ahead, despite BTC/USD gaining over 40% in Q4.
The market’s parabolic phase has notionally begun, lasting for around 300 days before a new macro top set in. Locally, expectations of Bitcoin reaching six figures for the first time in history are increasing, tempered by concerns that retail “FOMO” may force a significant correction.
FOMO and Bitcoin Bull Runs: How the RSI Indicator Predicts the Next Surge
“Lots of people about to become intimately familiar with the phrase, Fear of Missing Out (FOMO), on this Bitcoin cycle,” commentator Preston Pysh, co-founder of The Investor’s Podcast, predicted on X this week.
Earlier this month, pseudonymous analyst PlanB, creator of the Stock-to-Flow family of BTC price models, foresaw the main FOMO wave hitting in early 2025. PlanB referenced the relative strength index (RSI), which tends to stay above its overbought 70 level throughout Bitcoin bull runs. Monthly RSI measured 74.4 on Nov. 18, per Cointelegraph Markets Pro and TradingView data.
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How to Find the Best Bitcoin to Invest In for Maximum Profit
Before jumping on the bandwagon, it is important to understand the potential benefits and risks of investing in Bitcoin to help you decide whether it's the right investment for you.
Pros
Potential for High Returns
Bitcoin has shown considerable investment returns in the past. Those who adopted and invested early have experienced notable profits as Bitcoin's value has increased over time, making it an attractive choice for individuals interested in high-risk, high-reward investments.
Decentralization
Bitcoin functions on a decentralized network, which means any individual, government, or financial institution do not govern it. This feature can shield investors from government regulations and possible inflation, promoting a sense of financial independence.
Liquidity
Bitcoin is a highly liquid asset, enabling investors to buy, sell, and trade it across various exchanges. This liquidity allows investors to react quickly to market trends or adjust their investment strategies.
Growing Acceptance
More businesses and institutions are accepting Bitcoin as a valid payment option. This growing acceptance increases its usefulness and could raise its value as demand for Bitcoin increases.
Hedge Against Inflation
Bitcoin is frequently considered a form of digital gold during economic instability or inflation. Its maximum supply, limited to 21 million coins, may provide some protection against currency devaluation, making it a viable choice for investors aiming to preserve their wealth.
Cons
Volatility
Bitcoin is recognized for its significant price swings. Investors can potentially achieve substantial profits, but they can also encounter considerable losses in a brief timeframe. This volatility might discourage cautious investors from participating in the market.
Regulatory Risks
The rules about Bitcoin are still changing. Governments globally are updating their policies, which can affect Bitcoin's:
- Legality
- Use
- Value
Uncertain future regulations may present risks for investors.
Security Concerns
Investing in Bitcoin carries certain security risks. Investors should protect their private keys and wallets against hacking, theft, and loss. If someone loses access to their Bitcoin wallet or falls victim to cybercriminals, they may permanently lose their investment.
Lack of Consumer Protections
Bitcoin transactions differ from traditional financial systems in that they are irreversible and typically lack consumer protections. If a transaction encounters issues or an investor falls victim to a scam, recovering lost funds can be difficult, highlighting the importance of careful research beforehand.
Limited Use Cases
Bitcoin has become well-known as a digital asset and store of value, but its practical use as a currency still needs to be improved. Some businesses do not accept Bitcoin for payments, which may restrict its usefulness as a medium of exchange and impede broader adoption.
Is Bitcoin a Good Investment Despite the Risk?
Similar to any speculative investment, buying Bitcoin carries significant risk. As the traditional finance world realizes Bitcoin's potential for disruption, they must either adopt it or face irrelevance.
Bitcoin's volatility risk is one of the major factors determining whether it is a good investment, but it isn't necessarily good or bad. The personal decision to invest in Bitcoin comes down to your appetite for risk and your perspective on the future of humanity. For example, Russia has stated they are looking into BTC to lower their dependence on the US dollar.
7 Ways to Invest in Bitcoin: Stocks, ETFs, Mining, and More
Bitcoin has the potential to massively disrupt the US dollar, and it is simply too big to ignore at this point. If this disruption is successful, Bitcoin could be a fantastic investment.
Here’s how to get started:
1. Investing in Bitcoin Stocks and Funds: The Easiest Ways to Get Bitcoin Exposure
One way to invest in Bitcoin without buying BTC is to buy some stocks and funds associated with Bitcoin. Several publicly traded companies have invested in Bitcoin or are involved in the industry somehow. For example, MicroStrategy, Square, and Tesla have all invested heavily in Bitcoin.
Aside from stocks and funds, you can also invest in Bitcoin exchange-traded funds (ETFs). These funds hold a basket of stocks associated with Bitcoin, providing you with diversified exposure to the BTC space. You must know that investing in Bitcoin stocks and funds is also quite risky, so it is vital to do more in-depth research before investing.
2. Investing in Bitcoin Mining Companies
Investing in Bitcoin mining companies is another way to invest in Bitcoin. Mining companies are responsible for making this process easier by validating transactions and adding them to the blockchain. By investing in mining companies, you can indirectly invest in Bitcoin and benefit from its increasing value.
Due to Bitcoin’s fluctuating value and the fact that mining is a complicated and energy-intensive process, investing in Bitcoin mining companies can be risky. There is also the risk of regulatory changes that could impact mining companies' profitability.
3. Investing in Bitcoin Futures
Bitcoin futures allow investors to bet on Bitcoin’s future value without owning any BTC. Futures contracts allow investors to purchase or sell BTC at a predetermined price at a future date.
This investment method can be used to hedge against potential losses or speculate on Bitcoin’s future value.
- Futures ETFs Futures-based Bitcoin: ETFs invest in futures contracts rather than holding them directly. These contracts speculate on the future price of Bitcoin, providing an investment pathway tied to its future market expectations rather than its current price.
This approach can sometimes lead to discrepancies between the ETF’s performance and the actual spot price of Bitcoin, especially in volatile market conditions. Futures ETFs offer a way to invest in Bitcoin’s potential without directly engaging with it, adding a layer of abstraction that can appeal to those cautious about direct BTC investments.
- Spot ETFs: In contrast, spot Bitcoin ETFs aim to track the current market price of Bitcoin. By holding it directly, they provide more direct exposure to Bitcoin’s price movements. Spot ETFs offer a closer alignment with Bitcoin's actual performance, making them a preferred choice for investors seeking an investment that mirrors BTC’s real-time value.
Major institutions like BlackRock, WisdomTree, and ArkInvest currently have pending applications for spot Bitcoin ETFs. These offerings could further diversify the available Bitcoin ETFs, potentially providing more direct and varied exposure to Bitcoin for investors.
- How to Invest in a Bitcoin ETF: To invest in a Bitcoin ETF, you need a brokerage or online share trading account that gives you access to the exchanges on which your desired ETF trades. Through this account, they can buy and sell ETF shares just as they would with traditional stocks.
This process simplifies the investment in Bitcoin, avoiding the need for digital wallets and the associated security concerns. Investing in Bitcoin futures can be complicated and requires understanding how futures markets work. Futures trading involves significant risk, so investors should be prepared to lose money.
4. Investing in Blockchain Technology Companies
Blockchain technology is the backbone of Bitcoin. By investing in companies that specialize in blockchain technology, you can indirectly invest in Bitcoin. These companies develop and implement blockchain technology, which has numerous potential applications beyond $BTC. Note that there is always the risk of technological advancements or regulation changes that could impact these companies’ profitability.
5. Buy Fractions of Bitcoin Through an Exchange
Many people new to investing in Bitcoin are discouraged by its high price. For instance, at the time of writing, a single BTC token is worth more than $34,000, which means that there won’t be many people who can afford to invest in an entire Bitcoin token. You don’t need to be discouraged at all!
How to Invest in Fractional Bitcoin: Understanding Satoshis and Getting Started
With a digital currency like Bitcoin, you don’t need to buy the whole unit of the digital asset or coin. For example, the smallest unit of Bitcoin is called a ‘Satoshi’, equal to 0.00000001 BTC. With the current price of Bitcoin and considering high price volatility, that’s worth less than a penny. This means that you can invest in smaller quantities that you can afford.
All you need to do is:
Select your favorite Bitcoin exchange from the ones we’ve recommended. Sign up on the exchange and go through the registration process.
How to Minimize Bitcoin Transaction Fees and Maximize Your Investment Returns
Invest in Bitcoin according to your financial requirements. It is important to remember that investing in Bitcoin incurs a network fee since the Bitcoin transaction must be processed. That’s why you should buy enough BTC to cover your expenses; otherwise, you will end up paying more in fees than your profit. If you don’t want to deal with the network fee, there are other methods to invest in Bitcoin, which are listed below.
6. Trade Bitcoin Through a Broker
Bitcoin brokers are digital platforms, but unlike Bitcoin exchanges, they do not sell you Bitcoin directly. Instead, they let you invest in the token of your choice by making predictions about their pricing. This is done through a wide range of financial instruments, the most popular of which is Contract for Difference or CFD. Other instruments include:
- Options
- Futures
- ETFs
The Advantages of Using Bitcoin Brokers for Short-Term Investment Strategies
Bitcoin brokers are a better option for those investors who don’t want to hold BTC tokens for a long time and just want to cash in on the price volatility not offered by fiat currencies (forex). Another positive of BTC investing through a broker is that you don’t need to get a Bitcoin wallet and manage your BTC tokens.
7. Investing in Bitcoin-Related Businesses
Many businesses accept Bitcoin as a form of payment. By investing in these businesses, you can indirectly invest in Bitcoin. These businesses include online retailers, restaurants, and even real estate companies. Investing in Bitcoin-related businesses can be risky, as the value of Bitcoin can be volatile. These businesses may face regulatory hurdles or operational challenges impacting their profitability.
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7 Strategies That Will Make A Big Difference In Your Bitcoin Investment
1. Invest Wisely: Only Put in What You Can Afford to Lose
This rule may seem basic, but it cannot be overstated — especially with BTC. So much can happen in markets like these that you should not risk anything you cannot afford to lose. You might even want to play it safe and invest only what won’t affect your life if you lost it all. This is especially true if you’re a new investor.
As you increase your knowledge and experience, you can certainly adopt higher-risk strategies. But even seasoned investors don’t risk more than they can lose, so always stick to this rule. Sure, there is the ever-present temptation to put in more for higher profit, but that’s fear of missing out (FOMO) rearing its head — don’t give in.
2. Buy and Hold: Forget the Noise and Let Bitcoin Do Its Thing
The buy-and-hold strategy relies on the rationale that, in due course, Bitcoin markets deliver a reasonable rate of return, regardless of periods of volatility or decline. It’s a long-term passive play where you buy and leave Bitcoin alone. You needn’t worry about short-term fluctuations, which is especially important for an amateur investor who finds it impossible to resist the urge to panic-sell. Most investors implement the buy-and-hold approach across the board, which means they buy tokens to add to their portfolio and don’t intend to sell for many months or years.
The Importance of Patience and Discipline in Bitcoin Buy-and-Hold Strategies
Buy-and-hold requires patience and discipline on the investor’s part, so you have your work cut out for you. There may be minor fluctuations occasionally, but you must wait it out, so slow down and force yourself to focus as the situation unfolds, recognizing the benefits of practicing patience.
If you sell BTC too early, you’ll miss out when the price bounces back. Behind every successful trader, there’s a plan; anything that doesn’t fit the criteria is none of your business. A plan helps you make logical decisions and define the parameters for your ideal trade, helping you avoid decisions in the heat of the moment.
3. Invest with Dollar-Cost Averaging: Eliminate Emotion from the Equation
While buy-and-hold implies a lump-sum purchase, dollar-cost averaging entails a series of smaller, recurring purchases. To be more precise, you invest the same amount of money at the same time – say, once a month – undeterred by market conditions to take emotion out of trading.
The bear market doesn’t have to be all bad. It can be a time for opportunity. Dollar-cost averaging is the opposite of trying to time the Bitcoin market, where you must anticipate highs and lows. Put money into BTC over some time, so you’re able to buy more during the dips and less when prices are high.
The Advantages and Risks of Dollar-Cost Averaging in Bitcoin Investments
After you determine how much you want to invest, stick with that amount; that is, be clear about your goals and outcomes so you can achieve them. The beauty of the dollar-cost averaging approach lies in its unpretentiousness and flexibility across various market conditions: in bull markets, you can ride the wave of disruption, while in bull markets, you can accumulate more Bitcoin at lower prices.
Yes, you can lose money even with dollar-cost averaging - there’s no strategy without risk or courage. Lump-sum investing generates better gains, but you risk losing if you’re forced to sell in the near term.
4. Different Wallets for Different Purposes: Don’t Store All Your $BTC in One Wallet Type
Using more than one wallet is more of a safety concern than an investment strategy. But what use is putting in all the work if you lose some money at the end of the day?
Two different types of Bitcoin wallets serve different purposes:
- Hot wallets are connected to the internet and are available on the standard apps you use to conduct transactions.
- Cold wallets aren’t connected to the internet. You can access your hardware devices using private keys generated from specialized websites.
Choosing Between Hot Wallets and Cold Wallets for Bitcoin Storage
So, how do you go about it?
If you often trade BTC, a hot wallet would be ideal for storing transactional amounts of BTC—the Bitcoin you’re moving out soon. But for long-term investments, use a cold wallet to keep your investment offline.
5. Keep Your Emotions in Check: Make Trading Decisions from a Place of Logic
Even the most successful Bitcoin investors experience anxiety or euphoria, which can lead to poor decisions, such as excessive risk-taking and not reaching long-term goals. Trading with emotions can lead to cognitive biases, decision-making motivated by immediate returns, and loss aversion, all of which can affect performance, often for the worse.
Think about keeping a journal of your trades, including the reasoning behind them and how you feel then, to pinpoint emotional patterns and triggers. Equally, you must have a plan to help you navigate overwhelming feelings – it will serve as a roadmap, promoting disciplined trading.
The Importance of Seeking a Second Opinion in Bitcoin Investment Decisions
Seek a second opinion before making a move. In other words, have a fellow trader or an expert review your financial situation and send their two cents so you can avoid bias. At times, all you need is a new perspective. A second opinion will give you the confidence you need if you don’t trust your judgment, leading to a more fulfilling and positive experience.
This will ultimately give you peace of mind and help you get/keep the life you want. Even people who can control their emotions might find it difficult in times of stress or high tension, so you should never dismiss a helping hand.
6. Take Advantage of Bitcoin Volatility: Seize Opportunities in a Bear Market
The price fluctuations of the BTC market can play to your advantage if you know how to navigate it. As a Bitcoin trader, you can buy the dip and sell when the price is favorable. Don’t see the volatility as a threat but use it to your advantage. To succeed, you must pay close attention to the market and stay informed about the latest market news.
7. Withdraw Your Profits Regularly: Have a Clear Plan for Taking Gains
Before you invest, identify your goals first. This will help you be more decisive in taking your profit when the time is right. Some traders are often at a crossroads when it’s time to exit the market because they’re unsure whether the price will soar or dip. You’ll maximize your investment when you know when to withdraw your gains.
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