To a hardcore businessman, the allure of making money is unceasable. No matter how small or large the investment, their minds are already calculating ROI. “It’s in the blood,” my father used to say.
Since its inception, crypto trading has been a lucrative business. Many have been lucky enough to make a considerable profit.
And if you’re reading this blog, then you must be one too!
At a glance, the value of Bitcoin has nearly doubled since March this year.
While some investors are more interested in HODLing, others find that the less is more strategy works best for them. If you are one of these fortunate investors, now’s the time to put your returns to good use.
You’ll be surprised to learn that a 2020 survey by HSB revealed that 36% of small-medium businesses in the US accept Bitcoin. People can now use it to pay for items as nominal as fast food or as enormous as real estate, and everything in between. And as security is beefing up to protect cryptocurrency users from malware, more use cases are coming into the spotlight.
But for some time now, a lot of crypto millionaires have been heading over to auto dealers with the intention of purchasing luxurious, high-end automobiles or flashy sports car models. Ferrari’s, McLaren’s, Rolls-Royce’s, and Bugatti’s are high on their list.
The question now is:
How can I get a good deal when buying a car with Bitcoin?
You probably already know that not all cryptos have the same trading demand. But Bitcoin is a choice for many because it’s a secure digital currency that is globally acceptable.
So buying a car with Bitcoin can be fast, fun, and easy.
Much like trading traditional assets and commodities, you need to be observant about market trends before making a decision. With a little research, you can make an informed choice on what car to buy, save money, and maximize your profits.
If you’ve read this far, then you’ve made up your mind to buy cars with Bitcoin.
Before you purchase the wheels of your dreams, there are two essential things you need to consider:
- You need to invest in a car that has good resale value
As a seasoned businessman, you expect to get the biggest bang for your buck. And even if you have no intention of selling your car right now, there will be a time when you will want to trade it in for a newer model.
You have to remember, though, that the value of your car starts depreciating the moment you buy it. According to Business Insider, the value drops by almost 35 percent within the first five years. However, it can vary depending on the following aspects:
- Brand- A reputable brand that offers superior quality automobiles and services will garner a higher value than others.
- Demand- The supply and demand curve holds true in the used car market as well. A rare model or make will definitely fetch a better price than one that is readily available.
- Maintenance- A well-kept car is worth more than a run-down one. The time and effort you invest to maintain the condition of your vehicle will pay off in the end.
- Distance traveled- A car that’s seen a lot of highways will show more signs of wear and tear than one that’s driven occasionally. The more you travel, the greater the depreciation.
- Economic conditions- An economic recession will hit the car-buying market hard.
- Time of year- People are more interested in buying during the festive season. In fact, the beginning of a new year is often a better time.
- You need to know the best time to use your cryptos
The world of crypto is notorious for its volatile prices. So Bitcoin’s behavior can work in your favor- or against you. But knowing when to sell Bitcoin can significantly improve your chances of snagging a good deal.
All it takes is research. Market timing is, by far, one of the greatest influential factors of the value of Bitcoin. And since it’s a 24/7 market, you need to be looking into various aspects. Fundamental analysis of the market and economic conditions can help you find optimal Bitcoin trading times. It could help you save money and maximize your trading profits. Moreover, you’ll be able to predict price movements and move your coins quickly to make a smart profit.
Let’s take a closer look at when the price of Bitcoin will most likely peak so that it’s a better time to buy your car.
Finding the best time of day
Crypto prices can vary by up to 50% in a day. Ideally, you want to buy when the price is low and sell when it’s high. Watching the price fluctuation and identifying the pattern requires practice. But it’s not something that’s too difficult to master.
Recognize when the demand for Bitcoin is low. Begin by analyzing the price over 24 hours. You may need to pull some historical data to get a clearer picture. But studies show that trading volumes are usually the highest between 9 a.m. to 5 p.m.
The dips highlight times when you should buy Bitcoin. Similarly, peaks will correlate to times when it’s best to sell. And these are the moments that you need to focus on.
Other key variables influence the crypto market conditions. These include:
- Day of the week- The demand for digital currencies tends to drop over the weekend. So you can expect the price to dip. Therefore buying a car over the weekend may not be the best time.
- Market demand- Any cryptocurrency token is only worth as much as a person wants to pay. The price drops when there is less demand, and increases when more people are interested.
- The number of traders- The more people that buy and sell a token, the more regard there is. The important thing is that there should be more buyers than sellers in order for the price to move upwards.
- News and updates that influence the crypto market- For example, taxation on trading could affect the demand for all cryptocurrencies in general.
- Cryptocurrency location- A crypto trading platform will post announcements according to the local timezone. So even though cryptocurrency trading is a global market, it is influenced by location. Moreover, trading during the day is the highest between 9 a.m. to 5 p.m. But depending on where the platform is based, international traders will need to look into optimal timings of that particular location.
It’s a wrap
Buying a vehicle with digital currencies may not have been so easy a couple of years ago. But with these key insights, purchasing the car of your dreams is plausible. As Bitcoin gains more momentum in the mainstream, its popularity in the global payment system will increase. And as more companies will accept it as a form of currency, we will witness other automobile service providers come on board in the near future.
All you need to do now is find that perfect car.
Erica Silva is a blogger who loves to discover and explore the world around her. She writes on everything from marketing to technology. She enjoys sharing her discoveries and experiences with readers and believes her blogs can make the world a better place.
Find her on Twitter: @ericadsilva1