How to Invest 1000$ in BTC?
How to Invest 1000$ in Bitcoin Right Now?
Before starting our investment journey, like every challenge in life we need a target. So for this investment adventure, we are setting our Bitcoin target as 100,000$. This means we will exit the strategy when Bitcoin reaches 100,000$.
Yes, considering the past data & trends Bitcoin will touch 100,000 in the near future. Without the expectations of the price appreciating in the future, you cannot invest in any asset. Also, you are required to do your fundamental research before investing in Bitcoin.
Every investor is not the same & every investor has a different risk appetite. Someone would be willing to take a higher risk for a higher reward. On the other hand, someone would like to play it safe.
Buying Strategy
Time Frame: Weekly
EMAs/MAs to Consider: 20 SMA, 55EMA, 100EMA, 200SMA & 300SMA
Firstly, you need to break the buying into 4 parts.
Low Risk: (100,200,300,400)
Medium Risk: (250,250,250,250)
High Risk: (400,300,200,100)
We will continue the example with Medium Risk
As per the strategy, you need to place your buying bids at 20 SMA, 55 EMA, 100 EMA & 200 SMA. The EMAs & SMAs values keep changing every week so you need to update your bids frequently.
Suppose you placed your buying bids at the beginning of 2021 in January. The following should have been your bids
1st Bid at 20 SMA @ 17211$ for 250$
2nd Bid at 55 EMA @ 13965$ for 250$
3rd Bid at 100 EMA @ 11455$ for 250$
4th Bid at 200 SMA @8229$ for 250$
In a bull run, Bitcoin is expected to bounce off from 20 SMA. In some cases, it retests 55 EMA also. As per the historical data, 100 Week EMA & 200 Week SMA are only tested in a downtrend.
Since Bitcoin is expected to be in an uptrend it is highly likely that it will go below 55 EMA. But for the safer side, we will place bids there. Else, risk-takers can double their bids at 20 SMA & 55 EMA considering that Bitcoin will not go below 55 EMA
In May 2021, the 20 SMA & 55 EMA bids would have been full filled.
You would have bought:-
250$ worth of Bitcoin at 48000$
250$ worth of Bitcoin at 31600$
This means you would have .013119 Bitcoins for 500$
Your average would come out to be .013119 Bitcoins at 38112$ for 500$
Your 100 EMA & 200 SMA bids would have been intact
Pls, Remember: In January these moving averages were at different levels and in May these are at the above-mentioned levels. So you will have to update your bids every week
If you were going for a higher risk-reward you would have bought 500$ worth of Bitcoin at each of those levels considering Bitcoin will not touch 100 EMA & 200 SMA since it is a bull trend.
In August your portfolio value would have reached 682$ (a profit of 182$) and in Oct your portfolio would have stood at 905$ (a profit of 405$). Even today when Bitcoin is down at 48000$ you would have been in profit since your average buying is at 38000$.
How to Maximize Profit: When Bitcoin starts trading above 20 SMA, start booking your profit in parts or take out your initial investment and again place the bids at those levels. This way you can maximize your profits