No matter where you look for advice, everyone will tell you the best time to buy crypto is now. That is said considering the time frame in which a coin is becoming more valuable and less affordable. For example, Bitcoin’s price was close to nothing at the beginning of its deployment on the market and has now reached significant costs. So, if you still want to learn how to buy Bitcoin, you have to do it now because its price is forecasted to boom, with the next halving in 2024.
At the same time, your buying strategy should include aspects of the market, from bullish or bearish tendencies to the economic state of the world. While it’s not ruled by any financial institution, investors’ sentiment will still be influenced by some factors from the real world.
So, here’s some advice on what is the best time to buy crypto and secure your portfolio.
Crypto investments based on the time of the day
To leverage the best results in the long term, you should consider the time of the day for buying crypto. A suitable time frame is when there is less activity on the market according to your time zone. But generally, it’s best to purchase during the morning and the evening since the low trade activity establishes a less volatile market.
However, different cryptocurrencies will have distinct price fluctuations, so expect that Bitcoin and Ethereum will have other hours for stability compared to emerging coins like XRP20 and Optimism. At the same time, be wary that you must not invest more than you’re willing to lose, so don’t buy Bitcoin only because it’s a popular coin, but instead choose to have fractions of it to balance your portfolio regarding your risk assessment.
When to buy crypto during the week
The idea behind buying crypto during the week has the same base: analyzing the market and seeing when there’s less traffic that follows decreased volatility. So, the best time to buy coins is during the weekends since weekdays are usually full of transactions. You can buy more assets during these two days compared to any day during the entire week.
Monthly crypto buying should be done only when the price is low. Most of the time, this happens at the end of the month, when people withdraw their coins to pay for bills or rent, but this depends on the country. Therefore, the price of crypto will go back up at the beginning of the month.
Learn basic crypto patterns
Like any other market, the crypto environment is prone to patterns that will help you determine your next move. For example, an ascending triangle shows an uptrend that should follow a bullish market where prices increase. At the same time, a descending triangle indicates the trend of a bearish environment where cryptocurrency prices decrease.
There are numerous values like these, and they represent upward or downward moments in the market. But they all come down to the bullish and bearish trends.
When you’re in a bull market, prices go up, but investors have a better sentiment index as the entire economy is flourishing. This ecosystem condition is usually triggered by investors who buy coins at lower prices, but generally, favorable conditions are the leading cause of bullish trends. Some investors buy during this time because the collective effort will keep the market in an uptrend for longer.
On the other hand, a bear market is characterized by a considerable fall in prices. This also happens when the economy drops, so investors don’t trust profit opportunities. Still, some traders choose to buy assets during a bear market since prices are down and sell again when the bull market is back. Unfortunately, it’s not easy at all to tell when the bear market will end, leaving investors with uncertainty about the future of their coins.
The best investment strategy for the long-term
While long-term crypto investments won’t provide you with a lot of assets, they will help avoid volatility as much as possible and will help you gather more for the future. While it takes decision-making for consistent results, choosing the following methods will benefit you a lot:
- Hodling (or holding) your crypto for longer has been proven to be successful for numerous investors. This strategy implies that you buy coins and keep them in your portfolio for at least a year for them to gain more value;
- Dollar-cost averaging (DCA) is the simplest way to engage in crypto investments and secure your assets. That’s because you allocate a fixed amount of capital to your portfolio, no matter the market’s condition, to dodge volatility spikes;
What are the best cryptocurrencies to invest in at the moment?
The number of cryptocurrencies is continuously growing. Currently, around 20,000 coins exist, according to Statista, but only about 9,000 are relevant and active. So, it’s challenging to buy a few coins from trustworthy crypto.
Therefore, it’s mostly recommended that you diversify your portfolio with large-cap cryptocurrencies of at least $10 billion (Bitcoin and Ethereum), medium-cap cryptocurrencies of which value is between $1 billion and $10 billion (Tezos, Monero) and low-cap coins that value up to $1 billion (Wall Street Memes, Sonik Coin).
This mix is best because large-cap cryptocurrencies provide the most income but are prone to volatility and risks, while small-cap coins tend to be less valuable but more stable. In the long term, this strategy of keeping your portfolio will help you avoid extreme volatility spikes, allowing you to keep most of the assets without selling them out of FOMO. At the same time, despite your input, you’ll find the outcome to be stable, especially after a few years of investment.
Final considerations
Most experts and investors state that the best time to buy crypto is now. But besides this statement, you must have a strategy in mind for leveraging a constant income for the long term. The best thing is to buy when the network is less congested and diversify your portfolio to minimize risks.