Should You Buy Bitcoin in 2024? Key Considerations For Bitcoin Wallet Holders

For cryptocurrency enthusiasts who already own Bitcoin stored in wallets, the question arises - should more Bitcoin be acquired in 2024 specifically? As the next Bitcoin halving approaches and talk of a potential bull run gains momentum, BTC wallet holders have a few key factors to weigh when deciding whether to increase holdings before 2024.

2024 is expected to be a pivotal year for the flagship cryptocurrency when the next halving event occurs. Bitcoin halving refers to periodic events where the Bitcoin reward per block mined is cut in half, happening once every 210,000 blocks or roughly once every 4 years.

With the next halving anticipated in 2024, there are several key factors investors should evaluate when deciding if 2024 is the right time to invest in Bitcoin:

Should You Really Increase Your BTC Wallet Holdings?

Before obtaining additional Bitcoins, it is recommended to assess the existing value safeguarded within your Bitcoin wallet holdings. With Bitcoin’s high volatility, prudent risk management means not over-allocating portfolio percentages to high-risk assets. If your wallet already contains substantial value, diversifying into stablecoins, stocks, real estate or other asset baskets may take precedence over buying additional fractional Bitcoins during the next hype cycle peak.

Cost Averaging Opportunities

That being said, cost averaging can also be an effective and low-stress approach if your Bitcoin wallet holdings remain on the smaller side. By making small, consistent and regular BTC buys monthly or quarterly, wallet holders can grow their balances by dollar cost averaging rather than attempting to time dips. With Bitcoin potentially approaching its 4-year periodic bull run by 2024, consistent purchases could stand to see significant gains in the coming years as mass adoption continues accelerating.

Next Halving Implications

Bitcoin’s fixed supply schedule causes immense speculation around each halving event which slashes block rewards by 50% about every 4 years. With the next Bitcoin halving expected around April 2024, wallet holders may benefit from closely tracking mining economics shifts and consequences on network hash rates and transaction fees to make informed investing decisions. Institutions are also banking on the halving and ensuing scarcity to push Bitcoin valuations upwards, making pre-halving accumulation prudent based on historical data.

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This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice. Cryptocurrency is a volatile market; do your independent research and only invest what you can afford to lose. New token launches and small market capitalization coins are inherently more risky than large cap cryptocurrencies. These tokens are subject to larger liquidity and market risks.