How to Invest in Bitcoin: I've Spent 5 Years Covering Crypto, and This Is the Strategy I'd Use Today

The best way to invest in Bitcoin (CRYPTO: BTC) is with a long-term buy-and-hold strategy, preferably by accumulating during pullbacks. Bitcoin is extremely volatile, but it has historically followed four-year cycles based on its long-term price data. You're more likely to make a profit if you commit to holding it for at least five to 10 years.

I've been covering Bitcoin and other cryptocurrencies since 2021, and I've invested in them since late 2017. After experiencing several bull and bear markets and seeing how investor sentiment changes during each one, I'd argue that the easiest approach is simply holding through the ups and downs. If you want to potentially reduce risk and increase returns, you can base your buying and selling decisions on where Bitcoin is in its market cycle.

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Bitcoin has historically followed four-year cycles

Although Bitcoin may seem completely unpredictable, its price has generally moved in cycles of about four years. The top of one bull market has been followed by the top of the next bull market about four years later. The same is true of bear market lows, which have also been separated by about four years.

The table below provides the respective peaks and bottoms for Bitcoin going back to 2013.

Data source: CoinMarketCap *Current low point of this cycle as of Sept. 9, 2026.

Bitcoin's price history shows what investment strategies have worked so far with the leading cryptocurrency. A buy-and-hold approach has consistently been a winner. Even if you bought at the peak of a bull market, you still would've come out ahead if you held until the next one.

However, it's also clearly much more profitable to accumulate during downturns. For example, if you had bought Bitcoin at its 2021 peak, 1 BTC would've cost you $67,549. A year later, the same amount of money could've bought you about 4 BTC. That's the difference between having a position worth about $125,000 or having one worth about $500,000 at the top of the next bull market in 2025.

Bitcoin's price is highly dependent on market sentiment and the macro environment

Bitcoin is the largest cryptocurrency, but its real-world utility is limited compared to other coins. Smart contract blockchains, such as Ethereum and Solana, provide a programmable platform for decentralized financial products. Payment coins, such as XRP, offer fast transactions with low fees.

Bitcoin, on the other hand, is mainly used as a store of value. Since there's a hard cap of 21 million BTC for total supply, the price should rise during periods of increased demand.

This makes Bitcoin different from other investments because its price is primarily based on external factors. Other types of cryptocurrency may see price increases because they've made technological improvements or attracted more users to their blockchain. Demand for Bitcoin depends more on interest rates, the strength of the dollar, inflation, and the overall market sentiment.

Buying during downturns is the most profitable Bitcoin investing strategy

Because Bitcoin is so volatile, investors who buy during downturns will see much higher returns. While that's easier said than done, there are two ways to pull off this strategy.

My preferred approach is to invest when Bitcoin has declined by at least 25%, and ideally more, from its most recent high. I also track market sentiment using the fear and greed index on CoinMarketCap and by monitoring what crypto investors are saying on social media. When comments have turned largely negative, that often signals it's a good time to buy.

Essentially, you go against the grain. Invest more when everyone seems to be giving up on Bitcoin, and either hold or consider taking some profits when Bitcoin keeps setting new highs and the entire market is euphoric.

I don't try to time the bottom perfectly, as that's impossible. The goal is to add more Bitcoin on the dip before the price shoots back up, which can happen quickly once sentiment improves.

If you want a simpler option, you can dollar-cost average by investing a fixed amount in Bitcoin or Bitcoin ETFs on a set schedule. You'll buy the highs and the lows this way, but it requires hardly any time or mental energy.

Whichever option you choose, make sure to limit Bitcoin and other cryptocurrencies to a small portion of your portfolio, and only invest money you can afford to lose. It's much easier to stay invested in a volatile, risky asset when you know you'll be fine no matter what happens to the price.

Lyle Daly has positions in Bitcoin, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy.