Even the very best professional traders cannot call the market perfectly, buying the very bottom of a market cycle and selling the very top. Realistically, it’s best not to try to time the market unless you have a lot of experience – and good risk management.
One strategy that has gained popularity is dollar cost averaging, or DCA. This simply means buying a certain amount of bitcoin at a regular interval. For example, you might decide to purchase $100 worth of BTC on the last day of each month.
This has at least two benefits:
It takes the emotion out of investing, making it a mechanical process. You are not looking at the price and seeking to time your entry, just buying a little every few weeks.
It smooths out the ups-and-downs of the market, allowing you to average into a position over time. This significantly reduces your risk, since if the price falls, you buy more BTC for the same amount of money, and when it rises, your holdings based on lower prices are worth more.