When Is The Best Time To BUY Crypto?

As Bitcoin rockets to the stratosphere, this is a great moment for us to lay out some basic strategies for timing on when’s the best time to buy crypto. Yes, we’ve all seen the egregious buy recommendations from people on Twitter who have never made a successful crypto trade in their life and only know enough about crypto trading to kill a bull market. If you want to be ready for the next dip I hope you’ll find this article helpful.

Related: When is the best time to SELL crypto

What is the best time of day to buy cryptocurrency?

You can buy cryptocurrency from exchanges like Binance 24 hours a day, 7 days a week. However, due to time zone differences, most traders operate throughout business hours.

Typically, day traders (like myself) are concerned with the best time of day to buy cryptocurrency. Why? Because the main goal here is to profit from increased volatility. When market activity is high, volatility is high.

This signifies that the ideal time of day to buy cryptocurrency is when the world’s most important business hours overlap. This is between 1 PM and 3 PM GMT, which is the overlap between European and American business hours, as well as between 11 PM and 1 AM GMT, which is the end of the American business day and the beginning of the Australian and Asian Market hours.

While others use dollar-cost averaging to control the volatility of their own costs (at least to some extent) and avoid the roller coasters, as a day trader, I won’t have to worry about that because of this reason:

Never invest more in a cryptocurrency than you are willing to lose. They are not sure bets or asset classes that provide any kind of security, especially if they crash to zero. Some people have made large sums of money by buying at the right moment, but this is often due to luck rather than market timing. Risk Management is the key.

What is the best day of the week to buy crypto?

The market is most active during the working weeks because Bitcoin is popular among business professionals. Consider buying Bitcoin on a Sunday if you want to save money on your upcoming purchase.

You could also purchase on Monday first before the market gets crowded.

Of course, the Bitcoin market has always been open, and there is always some trading. You do, however, want to get in when the low prices are available.

Only when the market is less active, prices are usually lower. This not only makes weekends the best days to buy, but it also likely relates to why you need to buy later in the day or at night.

What Economists have to say about buying Bitcoin

Some experts believe that you should take into account more than just the present value of cryptos. After all, Bitcoin’s value fluctuates much more in relation to the USD and other currencies than the similar exchange rate relationships that occur between many fiat currencies, so it can’t be compared to exchanging two traditional currencies.

  • Because more people trade during business hours, these are the most difficult times to buy Bitcoin.
  • Once demand is high, so are prices. Think twice when there is less demand.
  • Consider business hours outside of the United States as well.
  • The media’s coverage of cryptocurrency may also have a significant impact on Bitcoin’s value in the near future.

It’s possible that you’ll never be able to anticipate the best time to buy Crypto. You can, however, make an educated guess if you understand what to look for on the market and elsewhere.

Timing the market

One of the most popular ways of investing or trading in the cryptocurrency market is to time your market entry. Technical and fundamental analyses, as well as automated, algorithmic trading strategies, come into play here.

Technical analysis entails using technical indicators, which are frequently built into trading platforms, to figure out the trend and momentum of a specific cryptocurrency. To forecast price action, you use these indicators to analyze crypto chart patterns, such as those for Ethereum or Litecoin, as well as historical trends.

Fundamental analysis aims to establish the intrinsic value of a cryptocurrency by analyzing both quantitative and qualitative economic and financial factors.

However, when it comes to market timing, the fundamental analysis some crypto traders focus on encompasses geopolitical advancements and news about specific crypto.

Here’s an example of how fundamental analysis can help you time the market.

On March 29, 2022, it was revealed that on March 23, 2022, hackers stole approximately $600 million from Ronin Network is one of the largest crypto heists in recent years. Following the disclosure of the hack, RON, the native token of the Ronin blockchain, fell by approximately 30%.

when is the best time to buy crypto - Ronin Network scam
image from: TradingView

The Advantages of Market Timing

The following are the primary benefits of market timing:

  • You can profit from bull and bear markets by using technical indicators.
  • There is a higher level of accuracy, particularly when trading news.
  • It is suitable for both short-term and long-term traders and investors.

The Disadvantages of Market Timing

  • It takes time because one must monitor market trends and keep up with recent developments in the crypto world.
  • Most technical indicators are susceptible to misleading signals and lag.
  • To accurately time the market, you must master technical analysis, effectively with the exception of novice traders who lack the necessary expertise and experience.

Do all of these matter when you’re a Day Trader?

There is a myth in crypto: All you need in order to succeed is a successful strategy.

People think that if they know exactly when to enter the market, they would magically make money. Intuitively, this totally makes sense. “Buy low, sell high”, “Short sell high”, and “Buy back low,”, makes total sense.

But, when it comes to day trading, it doesn’t work.

Unfortunately, if a successful strategy is all you needed, so many of us would be successful. Don’t get me wrong, you definitely need a strategy that’s successful at least more than 50% of the time. The higher the percentage success rate, the better. But that’s not enough, you need to practice.

Things happen fast when you’re day trading. You’re usually on a 1-minute chart, which means, you need to be very quick for your entry and exit. You need to be able to read the order book, and steadily practice.

So, the best time to trade crypto as a day trader is literally whenever you want! That’s the beauty of it. So, when you decide to enter a trade, set a price in your head and stick to it.

Most investments involve a significant amount of risk, and research is required to feel secure in the trading strategy. Because the cryptocurrency market is already so volatile, a riskier investment such as Bitcoin can pay off nicely.

If you want to start trading cryptocurrencies, Bitcoin is a good place to start because it has the longest history, the highest trading volume, and the most profitable volatility. Investing in Bitcoin can also expand your investment portfolio, though most experts advise keeping cryptocurrency to less than 5% of your overall portfolio.

What about you? When do you think is the best time to buy crypto? Let me know in the comments below.

If you want to start day trading (and not worry about when to buy or sell your crypto), check out Martina’s Learn to Trade & Invest Crypto Academy platform to get access to all content and resources, our trading community, and 2 Zoom lives with her every month! Try it out for 2 weeks 100% FREE!

Leave a Comment