What is the best time to buy cryptocurrency?
The simple answer is that there’s no specific best time to buy cryptocurrency.
You can buy when the market is low, and the price of Bitcoin is below its average price.
However, some days of the week show more traction on the crypto market due to additional factors like the stock market movement and global phenomena.
In this article, we’ve helped you understand the right time to invest in cryptocurrency so that you won’t have to look elsewhere.
What is the Best Time to buy Cryptocurrency in the U.S.?
In the U.S., the best time to buy cryptocurrency is the timeframe between 2:30 PM and 4:30 PM UTC. In fact, even an earlier hour during the daylight can be a better time for trading cryptocurrencies in the U.S. This is because of the overlap between the stock exchanges of London and New York.
Crypto is international, which means that the high-volume times are always the same worldwide.
It’s no absolute rule to trade during this moment. Also, many of the trading strategies don’t necessarily have to depend on whether the trader is active or not during this hour. However, it’s important to know that the cryptocurrency volumes are quite high during this time. And, as per the information in the previous section, it’s important for people looking for some liquidity and opportunities.
Are Weekends the Best Time to Buy cryptocurrency?
Not necessarily. You don’t typically get the best cryptocurrency prices on weekends since the market remains less active. This has a close correlation with the operating hours of the stock exchanges.
However, many cryptocurrencies drop in price during the weekends due to a lack of activity. Since the price sits at a low margin, weekends often create good opportunities for buying cryptocurrencies.
According to experts, weekdays (Monday prominently) are the best for buying cryptocurrencies. Prices of many cryptocurrencies remain at the lowest point on Mondays, making them the best time for buying crypto.
On weekdays, many professional traders trade crypto and different other assets. Also, due to the open stock market, the volatility of price and trading volume remains high at this point. The Crypto staking platforms also remain active during the workweeks. So, if you’re a day trader, weekdays would be a more prominent time for you to buy cryptocurrencies.
However, depending on your investment process, you can also choose to operate outside these hours.
What’s the Best Day for Trading Cryptocurrency?
There are several differences of opinion among expert investors regarding the best time for trading cryptocurrency. But Tuesday is the best time for trading crypto, according to many traders.
This is the day of the week when the traders start to ramp up their work, and the latest news and trends start to flow. The weekend effects finally come into action on Tuesday, making rapid and significant changes in cryptocurrency pricing.
Also, the mid-week activities from the stock exchanges also have some effects on the price of different cryptocurrencies.
Compared to the earliest point in the week, Saturday, Sunday, and Monday have a lower trading volume due to low activity worldwide.
Again, you must remember that a low volume of cryptocurrency doesn’t mean any negative sign if you want to buy cryptocurrency. It all depends on whether you’re getting a cryptocurrency for a low price or not. If you want to hold a specific crypto for the long term, wait for the price to fall rather than waiting on a specific day.
What is the Best Time to Buy Cryptocurrency Assets?
Following any specific time doesn’t help if you want to invest in a cryptocurrency and make money from it. The cryptocurrency market is unresting and volatile. So, traders have to stay in the market to identify the time that’s right for them.
However, they can consider a few important factors when trading.
Gas Fee
When using a decentralized blockchain, traders must concern themselves with the gas fees. The gas fee is the cost of mining crypto. Some blockchains (Ethereum, for instance) can often have a high gas fee due to the high volume of transactions on weekdays. This way, the gas fee you pay can eat into the profit you generate through trading.
Liquidity of the Market
Consider how fast a cryptocurrency can be liquidated. Some cryptocurrencies have a higher market liquidity, meaning they can be converted into cash or traded for other assets.
Lower Trading Volume
A lower trading volume of a specific cryptocurrency can make the price of a cryptocurrency volatile. The price can move up and down more frequently than normal. This often works as a negative indicator for cryptocurrency traders, stopping them from closing bigger trades.
Timing the Cryptocurrency Market: Build Your Process
Yes, it’s true that there’s no specific time for investing in cryptocurrencies. As long as the buying price is in your favor and the crypto has potential, you can invest any time. However, it’s critical to time your investment to make the most out of your money.
Here are some tips to help you time your investment and stay on top of market trends –
Workweeks or weekdays are the best time to buy cryptocurrencies since most people stay active. High activity can cause the currency to act as more volatile and cause frequent price drops.
Stay active with the stock market’s trading hours. They can affect the price movement of cryptocurrencies.
Think about risk tolerance by forecasting the cash flow and watching cryptocurrency market trends.
Forecast your cash flow and watch the cryptocurrency market trends.
Read blogs like Coinfomania and listen to podcasts to learn more about the market trends.
Understand your Motivation First
Buying cryptocurrency can be both easy and tricky. Therefore, you need to know the best time to buy cryptocurrency. You can head to an exchange platform and purchase cryptocurrency. However, to make a profit out of your purchase, you’ll have to introspect the purpose behind your purchase. What type of return are you expecting?
Will you get a substantial financial return from a cryptocurrency you’re buying? Does it align with your personal financial goals? Understand your personal goals and motivations for buying cryptocurrencies. Then, go ahead and purchase the coin that meets your requirements.
Bitcoin is expensive, and purchasing even a fraction of it can cost some people a fortune when the market is high. So, it’s best to factor the investment against your financial capacity. Once you understand that, you’re ready to invest in any cryptocurrency that you find value in.
Finally, you can refer to the above-mentioned timelines for choosing your buying window. Hopefully, this article was helpful to you. Thank you for reading.
