Best Time Of Day To Buy Cryptocurrency Fix
Unlike other assets, trading cryptocurrency has very low barriers to entry with tokens with a range of values. Rising inflation has also caused many to invest as a way to increase ancillary income. The allure of potentially turning a small investment into millions has also led others to try their luck with digital assets. Lastly, the constant hype around cryptocurrencies has caused even some crypto skeptics to look more closely out of FOMO (the Fear Of Missing Out).
best time of day to buy cryptocurrency
Buying cryptocurrency requires individuals to use a crypto wallet that can interact with the blockchain that tracks cryptocurrencies. The easiest way to do this is through an online cryptocurrency exchange platform. There are many to choose from, but exchange fees can vary widely. Make sure to take all fees into account before you buy cryptocurrency.
Experts say the best time of day to buy cryptocurrency is early in the morning before the NYSE opens since values tend to rise as the day goes on. Be sure to pay attention to slight daily fluctuations across different cryptocurrencies since trends will vary from coin to coin.
Prices are lower when the market is less busy. Although you can trade cryptocurrencies at any time of day, the market is more active during typical work hours and less active early in the morning, at night, and on the weekends.
Generally, cryptocurrency prices start low on Monday and rise throughout the week. When the weekend hits, prices tend to drop until market activity begins the following Monday. Since prices are likely to be at their lowest point following a weekend of low trading activity, Monday is the best time of the week to buy cryptocurrency.
Pricing trends carry on as weeks turn into months, and new trading patterns emerge that raise and lower the price of various cryptocurrencies over time. Since crypto trends are constantly in flux, deciding the best time of the month to buy cryptocurrency will require patience as you get to know the pricing trends of your favorite coins.
For now, the best time to buy cryptocurrency is toward the end of the month. Cryptocurrency prices tend to rise in the first weeks of the month before they collapse and continue to trend downward through the end of the month.
Just as with any other investment, cryptocurrency buyers should be aware of their risk tolerance and market conditions. But some trading strategies that work well on the stock exchange may not translate into profits for cryptocurrency trades.
That is why it is also called "programmed investment." Primarily, this trading strategy aims to smooth out the risks associated with price volatility in the financial markets. With scheduled investment, you invest regularly and long-term to avoid the consequences of a single purchase made "at the wrong time."
In contrast, investors who buy crypto at all-time highs will have to wait for the market to set new records to attain significant returns, making it somewhat more difficult to determine the best cryptocurrencies to buy (and when to buy them). But one who invests using the DCA has smoothed his purchases and will see his total investment grow on average at the pace of the market.
Periodic purchases in fixed amounts specific to the dollar-cost averaging strategy limit the impact of price volatility. This makes DCA especially advantageous for risk-averse investors. It also allows investors to limit the risk of overexposure to a given asset by predefining the amount and time to invest.
Ideally, the future of cryptocurrency is seen by many as a growth market, albeit with some extreme volatility. Typically, investors would give in to FUD and FOMO and prematurely dispose of their cryptos in favor of short-term gains, thereby missing out on the longer-term potential. However, DCA allows you to invest in structurally bullish crypto and maximize the HODLing period.
One of the most popular ways to invest or trade in the crypto market involves timing the best time to enter the market. This is where technical and fundamental analyses and automated, algorithmic trading strategies come into play.
Fundamental analysis attempts to measure a cryptocurrency's intrinsic value by examining qualitative and quantitative related economic and financial factors. However, when it comes to timing the market, the fundamental analysis we concern ourselves with involves geopolitical developments and news regarding particular crypto. Typically, short to medium-term traders prefer this approach. But this means that you must be up-to-date with the developments in the crypto market.
As we mentioned earlier, you can buy crypto from exchanges such as Binance 24/7. But different time zones mean that most traders operate during business hours. Typically, day traders and scalpers concern themselves with the best time of day to buy crypto. Why? Because the primary goal here is to capitalize on increased volatility. And volatility is high when market activity is heightened.
This means that the best time of day to buy crypto is during the overlap of the most significant business hours globally. This is between 1 PM to 3 PM GMT, which is the overlap between European and American business hours as well as between 11 PM to 1 AM GMT, which marks the end of the American business day and the start of Australian and Asian market hours.
During the 1 PM to 3 PM GMT overlap, European day traders are closing their positions, which means an increase in supply, hence lower prices. The imminent start of the American business day means that demand is about to rise, sending prices higher. However, if you intend to open a position during this period, let technical and sentiment analysis guide your decision.
Volatility in the crypto market is impacted by inflows and outflows of capital within the cryptocurrency market. The largest flow of capital is from institutional and corporate traders who operate within the business hours in their respective time zones. Typically, this is during the start and end of business hours, which means that the best time to open a position is when one business day ends and another begins.
The demand for cryptocurrencies is usually at its low during the weekends and lowest on Sundays, making it the best time to buy cryptocurrencies. The biggest reason behind the low demand for cryptocurrencies during weekends is the volume traded.
On a macro scale, the market news determines the medium-term crypto price trend. That means pinpointing the best time of the month to buy crypto circles back to fundamental analysis. A piece of significant news impacting specific crypto may determine its trend throughout the month or even longer. Market news is the one thing you should look out for here.
So, when is the best time of day to buy crypto? As we've discussed, the answer depends entirely on your trading strategy. Longer-term traders and investors may prefer using the DCA strategy, while shorter-term leveraged traders may prefer timing the market.
Generally, there is never an easy way to perfectly time your entry into the market since several factors affect the price of crypto. However, crypto prices are usually lower when the market has fewer active traders. This usually makes the late weekends and nights the best time to buy crypto. But always remember to incorporate technical, fundamental, and sentiment analysis in your trading. And always do your own research.
According to the study, the experts calculated the current BTC price for every Monday at the same time of night to determine the average Bitcoin price at 1:00 on Monday. For the analysis, the data were collected from February 6, 2018, to February 6, 2020.
It is important to remember that even though the history of the cryptocurrency is displayed, it should not be used solely to make predictions. Nobody can foretell what will occur in the future. Technical charts and indicators can improve your trading strategy, and some of these methods may not be feasible in some cases.
Ultimately, it is all about purchasing cryptocurrencies at the right time rather than according to a specific schedule. It is often a good idea for traders to buy at a low price and sell at a high price. Even so, many crypto enthusiasts cannot identify an appropriate entry point, which may result in the loss of funds for risk-averse investors. In light of this, this study is unlikely to impact significantly.
The volatility of Bitcoin makes it possible to earn a large amount of money very quickly. According to experienced analysts, trading is best between midnight and 1 p.m. during the UTC zone. During this time, you are advised to open intraday transactions.
The most active period of trading occurs between 19 and 20 U.S. time. During this hour, many lows and highs were registered regarding cryptocurrency values. This is because North America begins its evenings during this period, and Asia begins its working days during this time.
If you know when to buy Bitcoin, you can get it at a better exchange rate than if you bought it at a different time. Like stocks on the stock market, the value of Bitcoin can change throughout the day.
While most investors buy Bitcoin through their preferred cryptocurrency exchange, there are alternative ways to buy Bitcoin. These alternatives can be handy because they are applications or services you may already have:
Cash App does charge a fee when you buy and sell Bitcoin, and they will send you a Form 1099-B for determining any taxes on your cryptocurrency sales. Like the other digital payment platforms, they also have a high standard of security.
Like its stock trading, Robinhood charges no fees for trading crypto. This is a considerable advantage over some of the more trusted cryptocurrency exchanges that make their money in transaction fees.
If you are looking to invest in Bitcoin, Robinhood may be a solid choice. They have some specific rules about trading that you may want to research. And if you want to invest in other cryptos, Robinhood may not be your best option because of their limited list of available cryptos to buy and sell. 041b061a72