Is the time right for you to buy a crypto? This has to be the question that is uppermost in your mind once you have decided to put a part of your heard-earned money into cryptocurrency investments. Before executing trading activities, it’s also a good idea to figure out the optimum time to acquire cryptocurrencies and the best exchange to buy them on. For example, UK traders can identify the best place to buy bitcoin in the UK, allowing them to trade without concern. Certain factors, such as minimal fees, security, and convenience of use, should be used to select the best exchanges. What makes this problem more complex is the fact that the crypto market is always volatile and unpredictable; so, how can you be sure the timing is right? While there is no fool-proof method to gauge the right time to buy cryptos you can benefit from these guidelines:
- The good thing is that cryptos trade round-the-clock; the market never sleeps unlike the stock market which has fixed trading hours. So, any time that you find convenient is a good time to trade. While Forex trading may happen for 24 hours, it remains closed on weekends. But the crypto market is open at all times throughout the year; there are no holidays or off-days and people can stay engaged throughout the weekend or holidays trading cryptos. Auto-trading bots like Bitcoin superstar app reduces manual efforts by monitoring the crypto market values round the clock.
- In the crypto market, there is never a waiting period when investors get everything arranged for the opening of the market. According to a report by Bloomberg, almost 40% of Bitcoin price surges have happened because of weekend trading.
- FOMO or the fear of missing out on profitable trade opportunities is also common during weekends. This happens because most crypto enthusiasts find it convenient to engage in trading across the weekend. Naturally, they are itching for action as they can only access the crypto market at this time. As a result, speculators accustomed to overtrading try to do the same thing in crypto trading. Secondly, events like Thanksgiving are occasions when people meet each other and discussing cryptos across the table is a common thing. This was supposed to be one of the reasons why Bitcoin prices surged back in 2017.
- It has been noticed that trade volumes are lower during weekends. This happens mainly because prices tend to make major moves at such time. When few people engage in buying and selling, even less trading activities can raise prices. So, trading may be low but prices go up as compared to activities during work days.
- Finally, the CFTC takes out a report every Friday evening that shows position of traders. Every since Bitcoin Futures was launched, this was the first thing to be read and acted upon by the traders. While this may only tell you about the Bitcoin, the truth is that Bitcoin prices and movements have a direct impact on altcoin performances.
So, the weekend continues to be an exciting time for trading cryptos. This is however not to suggest that you will make winning trades every time but your odds of catching a move are much higher. It is rather difficult to time the crypto market or buy on dips when you are staring out. But, if you have done proper background research and decided to buy Bitcoins, you can go ahead. Investments in cryptos are always going to be risky and uncertain. High returns are very much possible but risks of losses are always there. So, never invest money from your savings account or emergency fund.