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March 19, 2013, 07:12:16 PM |
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Unless you are really good (lucky) at timing the markets and reading the charts, dollar cost averaging is the way to go. This means simply buying X dollars of Bitcoins at regular intervals (once a month, once a week, etc.). There could be a correction in the future, but this is hard to predict, and it could go up past $100 a BTC.
Last week I sold some BTC when the chain-fork incident happened thinking that the price would drop as investors read about it the next day. If anything I thought that would cause some short term jitters and when the price dropped I would be able to buy more BTC for the cash I was holding on the exchange. The next day I quickly realized that the BTC price would not be going down and I bought back what I sold, luckily for pretty much the same price at what I had sold for, less about $150 in trading fees.
The moral of the story is that if you believe in Bitcoin then buy some at regular intervals and hold them for the long haul. If you are trying to make money on buying and selling during the peaks and troughs, then get really good at reading and analyzing the charts and closely watching the BTC market on a daily if not hourly basis.
Also be sure to make use of online websites that sell in BTC. If you are buying a product anyway, you might as well use BTC as the medium of exchange to pay for it. You simply buy the correct amount of BTC on an exchange and then immediately use that same amount to buy the good or service. By doing this you will ultimately benefit the coins you are holding for investment purposes.
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