What is the best time to buy cryptocurrency?
Buy when the price of a specific cryptocurrency is low.
Buy during the start of a workweek.
You can also buy during the stock market trading hours.
The points we’ve suggested above are some basic ideas on timing your cryptocurrency purchase. Some investors and experts claim the above as the best times for investing in cryptocurrency.
But there’s no specific right time for buying cryptocurrencies. As long as you understand the market and have good trading skills and strategies, you’re good to go.
However, you can time your buying and trading to grow your earnings even further. Read this article to learn about actionable strategies for trading cryptocurrency.
What’s the Best Time to Buy Cryptocurrency?
Despite your strategy for making money from cryptocurrency, you need a good timing strategy to reap the profit. Here’s how you can time your trading for more profit from cryptocurrencies –
Cryptocurrencies are active during the weekdays. The price starts low on Mondays and slowly rises by the end of the weekend.
Stock market trading hours have some effect on cryptocurrency trading as well. So, even though the trading hours on cryptocurrency are open 24/7, stock trading is important.
Forecast your cash flow to beware of the risks in the market. Always keep your eyes open for Cryptocurrency market trends.
Position trading
If you want to make money from cryptocurrency, then start working on your strategies. The first strategy for buying cryptocurrency is the HOLD strategy. It translates into ‘hold on for dear life,’ meaning you’ll have to hold on to your purchase for the long term.
This strategy goes with any type of investment. This is a common investment tactic where one must buy and hold an asset for the long term with a sheer belief in growth. If you believe in its bright and rich future, then now is the best time to buy cryptocurrency.
However, remember to check the growth factors of a specific currency before investing. Check out the fundamental factors like its mechanisms and applications and also analyze the macroeconomics behind it.
Since you’ll have your assets locked in for a long time, there’s no need to worry about short-term market fluctuations.
Swing Trading
You can hold a fraction of a Bitcoin for the long term. Or you can invest in a short-term money-making strategy. Here, you’ll make money from a cryptocurrency’s short-term price movements.
Swing traders purchase and hold cryptocurrency for a few days to a week. When the price moves up a little, they sell their cryptocurrency for a profit. When the price falls again, they buy more to hold for another short period.
People participating in short-term or swing trading of cryptocurrencies depend on the cryptocurrency’s fundamental analysis. They check out charts for potential entry and exit based on price movements.
However, this type of cryptocurrency trading requires a strong understanding of trend indicators, discipline, patience, and learning. You can read blogs like Coinfomania, listen to podcasts, and check different pricing charts to learn more about these coins.
Day Trading crypto
Here’s the most popular trading strategy for cryptocurrency and how to make money from it. This strategy is all about buying and selling cryptocurrency in a single day. Traders find potential in time in the market and exit after selling their purchase on the same day.
This type of strict time frame was common in traditional trading, where traders had to operate within a particular hour of the day. Intraday traders never keep their position open in the market overnight since the market stays closed at night.
However, with the daily trading of cryptocurrency, that concept is changing. The exchange platforms are always open (24 hours).
So, there’s no need to hold a purchase for more than 24 hours. Day crypto trading often turns out to be very profitable on small time frame charts.
However, there’s also a high risk since short-term price fluctuations can be stressful.
Arbitrage
Any time can be the best time to buy cryptocurrency. You can try crypto arbitrage to make money from your digital assets anytime. It’s a way to make money using the price discrepancy of cryptocurrencies visible on different exchange platforms.
Arbitrage is a selling strategy where you buy popular cryptocurrencies on one exchange platform and sell them on another for a higher price. There can be slight pricing differences in cryptocurrency pricing on different platforms.
Since the crypto market isn’t regulated, you can make money using crypto arbitrage. However, remember that it’s hard to identify opportunities to make money through crypto arbitrage.
You have to go through hundreds of different exchange platforms to find the right pricing for generating profit. However, there is software to make the tracking easier.
HFT
HFT, or High-Frequency Trading, is also a quantitative strategy where traders make money through algorithmic shifts. The HF traders utilize complex algorithms.
Here, you have to use complex algorithms to use the market fluctuations. Here, the traders use the time gaps of a few milliseconds and fluctuations to make money.
This type of trading strategy is great for volatile asset classes. However, investors have to monitor the changes in pricing for important trading platforms. This trading technique suits only those who can build and test their trading algorithms.
So, aside from trading, you’ll also need good trading knowledge and programming skills to make money as an HF trader.
Scalping
One of the most efficient ways of trading and making money using cryptocurrency is scalping. It’s an efficient trading technique for people who aren’t afraid of taking risks. It helps traders make significant amounts from the slightest changes in pricing.
This trading technique is great for currencies with high volatility. Also, the investors must analyze the smallest changes in the pricing chart to look for opportunities. Scalpers decide on profit after only a few points move. So, remember that you consider commissions.
One can open a trade when the chart crosses the moving average, or someone pulls the price back from resistance or support. In short, it’s a technique to do numerous trades in a day to make money from the short fluctuations in cryptocurrency pricing.
Conclusion
Cryptocurrencies are volatile, and the market is dynamic. So, it requires more patience and strategic thinking to make the most out of your purchases. However, there are several platforms that let you mimic trading to help you learn without any money.
Now when you know the best time to buy cryptocurrency you can start by learning from those platforms and later on implement your skills in real-time trading. Meanwhile, all the trading strategies mentioned in this article remain effective for those who want to make a profit from cryptocurrency. Thank you for reading.
Disclaimer:
CBD:
Qrius does not provide medical advice.
The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
The information on this website is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or another qualified health provider with any questions regarding a medical condition or treatment. Never disregard professional medical advice or delay seeking it because of something you have read on this website.
Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
This article does not endorse or express the views of Qrius and/or its staff.
Stay updated with all the insights.
Navigate news, 1 email day.
Subscribe to Qrius
