Price history: this is relevant if I have made the decision that I want to invest. If it is an established asset I will be looking at its long-term price history, does it move in cycles (see Siacoin as an example), if so, which cycle is it in right now or does it have stable growth (see DASH)? If growth is stable I am less sensitive to the current price as I believe in long-term growth, I will only avoid if it is in a spike and will wait for the price to settle. If it moves in a cycle, unless it is early in a cycle, I will wait until the end of the current cycle before investing.
Connecting your bank account through an ACH transfer is a versatile option, allowing you to use a checking or savings account to buy Bitcoin or cash out when you want to sell. You’ll also be able to purchase a substantially larger amount of Bitcoin because of their higher buying limits. Just keep in mind that it can take up to 5 days for the transfer to be complete, and the value of Bitcoin can drastically change in that timeframe.

You won’t always have time to buy once the price starts recovering (or to sell when the price starts dipping). With the last point in mind, sometimes cryptos can rally or correct by 10% or more in a matter of moments after a harsh dip. It can be next to impossible to buy into some rallies once the price starts recovering or to sell once it starts dropping (without a market order and some slippage at least). It is from this perspective that it can be a solid strategy to mistime the bottom rather than waiting for the price to go back up. Sure, it is more conservative to wait for a trend to be confirmed, but this method can work much better after a very harsh dip down to a key support level you think the price will rebound off of quickly.
On June 26, the SEC revealed a proposal to ease the approval process and “modernize the regulatory framework for exchange-traded funds.” Most notably, the proposal stated that the “cost and delay of obtaining an exemptive order” during application would be eliminated, lowering the market barrier to entry for innovative new ETFs backed by cryptocurrencies.
All of this said, while these principles can and should be kept in mind at large for just about any investment, cryptocurrencies are dramatically different from stocks, bonds, or any other sort of traditional investment vehicle. They’re also so early stage and so volatile that it’s a near-certainty that a value investor like Benjamin Graham wouldn’t even dream of labeling such opportunities as investments, rather than speculations (at best, they would be labeled growth investments, but I’m working with the Buffett philosophy that there is no difference between ‘value’ and ‘growth’ investing, and that good value investing appropriately takes into account growth).
*Offer valid for one new Individual, Joint or IRA TD Ameritrade account opened by 12/31/2018 and funded within 60 calendar days of account opening with $3,000 or more. To receive $100 bonus, account must be funded with $25,000-$99,999. To receive $300 bonus, account must be funded with $100,000-$249,999. To receive $600 bonus, account must be funded with $250,000 or more. Offer is not valid on tax-exempt trusts, 401k accounts, Keogh plans, profit sharing plan, or money purchase plan. Offer is not transferable and not valid with internal transfers, TD Ameritrade Institutional accounts, accounts managed by TD Ameritrade Investment Management, LLC, current TD Ameritrade accounts or with other offers. Accounts funded with $3,000 or more are eligible for up to 500 commission-free trade internet equity, ETF, or option trades executed within 60 calendar days of account funding. All other trade types are excluded from this offer. Contract, exercise, and assignment fees still apply. No credit will be given for unexecuted trades. Limit one offer per client. Account value of the qualifying account must remain equal to, or greater than, the value after the net deposit was made (minus any losses due to trading or market volatility or margin debit balances) for 12 months, or TD Ameritrade may charge the account for the cost of the offer at its sole discretion. TD Ameritrade reserves the right to restrict or revoke this offer at any time. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. Please allow 3-5 business days for any cash deposits to post to account. Taxes related to TD Ameritrade offers are your responsibility. All promotional items and cash received during the calendar year will be included on your consolidated Form 1099. Please consult a legal or tax advisor for the most recent changes to the U.S. tax code and for rollover eligibility rules. (Offer Code: 220)
×