Cryptocurrencies are becoming more and more popular every day. While some people are hesitant to invest in them, others see great potential in this new type of asset. The high volatility of the crypto market makes it possible to make good money on digital assets. But for this, you need to understand: when to buy and sell.

Unlike traditional stock exchanges, the crypto market operates without breaks and weekends. This means that digital asset trading does not stop for a minute. But the market dynamics can depend on the time of day, which should be considered when trading.

How to trade cryptocurrencies?

Before buying a cryptocurrency, you need to understand how to trade it. Trading cryptocurrencies is different from trading stocks or Forex. And you need to consider several factors that can affect the price of an asset.

Some of these factors include:

  • news about the project
  • changes in regulation
  • the activity of large investors
  • technical analysis

You need to carefully study all these factors and understand how they can affect the price of an asset. Only then you will be able to make informed decisions and trade successfully.

In order to trade cryptocurrencies successfully, you need to have a clear trading plan. You should know what you want to achieve and what risks you are willing to take. It is also important to understand that you may not always be able to buy or sell an asset at the price you want. Sometimes you have to wait for the right moment. And finally, don't forget that cryptocurrencies are volatile, and the price can change quickly. You need to be prepared for both profits and losses.

Best time of the day to buy cryptocurrency

One of the most accessible and understandable ways to determine the moment to buy is to assess market sentiment, news background and other fundamental factors. For example, if a negative news background has developed around a particular asset, its rate has likely decreased, making it sensible to buy it. If the market is euphoric and almost everyone is buying a cryptocurrency, then it is better to refrain from purchases because soon, the price may fall sharply.

But not every price fall is a profitable buying opportunity. It is necessary to analyze what is happening in the market. Sometimes a sharp price drop may be the result of manipulation or a ban on trade in a particular asset. In this case, it is better to stay away from such assets.

Another way to find the best time to buy a cryptocurrency is to use special technical analysis tools. Experienced traders and investors use various techniques, but for beginners, it is best to start with the simplest methods.

The most popular indicators are Moving Averages (MA). They show the average value of an asset over a certain period of time.

There are two types of MAs:

  • Simple (SMA) is an arithmetic mean of prices for a certain number of days;
  • Exponential (EMA) takes into account not only the closing price but also the dynamics of recent changes.

The best time to buy a cryptocurrency is when the price crosses the MA line from below. This is a signal that the asset is beginning to grow, and it makes sense to open a long position. When choosing an MA, you need to take into account the time frame in which you trade. For example, on hourly charts, MAs with periods of 14-20 will be most effective, and on daily – 50-100.

Trading strategy

You should not buy an asset without a clear trading plan. This is one of the most common mistakes that novice traders make. Before buying, you need to set a goal – how much profit you want to get and when you are ready to sell the asset.

Users who buy an asset without a trading strategy often begin to follow the market and try to make decisions based on its movements. This is a very risky approach, as the market is highly volatile and can change direction at any time. Emotionality can also lead to losses. It is essential not to make impulsive decisions.

There are many different trading strategies, but the most popular are:

  • day trading – opening and closing positions within one day;
  • swing trading – holding an asset for several days or even weeks;
  • long-term investing – buying an asset and holding it for months or even years.

You can use any of these strategies, but the best results will be achieved if you combine them. For example, you can buy an asset for long-term investment and at the same time use swing trading to earn additional profits. It is best to develop a trading strategy in advance and adhere to it no matter what. This will help you make logical decisions and not give in to emotions.

Time and liquidity

When choosing the best time of day to buy cryptocurrency, you should also pay attention to the time of day and week. The most active trading on exchanges takes place during working hours from Monday to Friday. At this time, there is the most liquidity in the market and the best conditions for trading.

A trader must learn not only to take into account temporary features but also to observe who enters the market with what volumes of liquidity. For example, if during the Asian session trading volumes suddenly increase, then this may indicate that large investors are buying a cryptocurrency. You can join them and buy an asset.

Weekends and holidays

On weekends and holidays, trade activity usually decreases. This is due to the fact that most people do not work on weekends and prefer to spend time with their families or friends.

However, there are also some advantages to trading on weekends. For example, you can find more time to analyze the market and make informed decisions.

Best time of the week to buy cryptocurrency

The best day of the week to buy cryptocurrency is usually Monday. On this day, most assets show positive dynamics. This is due to the fact that over the weekend, large investors accumulate capital and are ready to enter the market on Monday. Tuesday is also considered a good day for buying cryptocurrency.

The worst days of the week to buy cryptocurrency are usually Friday and Saturday. On Fridays, traders close their positions in order to avoid risks over the weekend. Therefore, it is best to avoid buying assets on Fridays and Saturdays.

Best time of the month to buy cryptocurrency

In general, the best time of the month to buy cryptocurrency is the beginning or middle. At this time, most people get their salaries and are more likely to invest in assets. The reason for this is that at the end of the month, many traders close their positions in order to avoid risks.

Also, you should pay attention to the first and last days of the month. These days, the market can be very volatile as investors enter and exit positions.

Best time to buy crypto, according to economists

The best time to buy cryptocurrency is when the price is low, and there is negative news about the asset. Experienced traders and investors call this the “buy the dip” strategy.

The logic is that after a sharp decrease in price, the asset will start to grow again. And you can get a good profit if you buy it at this time.

Of course, this is not always the case, and there is no guarantee that the price will start to grow again. But this strategy has proved its effectiveness over time.

Purchase in parts

Another important rule for traders and investors is to enter a trade in parts. No need to try to guess the perfect moment to buy; most likely, it will not work. And even the most experienced traders and investors make mistakes.

It is best to divide your investment into several parts and buy them at different times. This approach is often called “dollar-cost averaging” and minimizes the risk of loss.

For example, if you want to buy 100 coins and the price is $1000, you can buy 20 coins every week for five weeks. In this case, even if the price falls sharply during this period, your average purchase price will be lower, and you will not lose all your money.

Final Thoughts

As you can see, there is no single answer to the question of what is the best time of day to buy cryptocurrency. The most important thing is to have a clear trading strategy and not to give in to emotions. It is also important to pay attention to the time of day and week and the news background. And remember that you can divide your investment into several parts and buy at different times. This will help you minimize the risk of loss.