Investments in cryptocurrencies have proved to be not a bad way to capitalize in the shortest possible term as well as in the longer perspective. Due to the high level of volatility of digital assets, investors have wider earning opportunities compared with traditional financial markets.
Cryptocurrency prices fluctuate daily on some percentage or may show sharp and swift drops and uprisings in a matter of hours. Traders pick a strategy that better suits the current situation in the market. That may be a long-term strategy involving holding crypto coins in a wallet for weeks or months without selling or exchanging them. Usually, such large and stable-growing crypto assets as Bitcoin are bought in the long-term strategy. That may be the shortest possible trade completed in a matter of a few minutes, while a trader takes a profit from the smallest market trend fluctuation. Such trades may occur many times a day, and the trader collects profit in small portions. That may be a daily trade, which is opened and closed within 24 hours. Or that may be something between – a swing method that takes a couple of weeks. Of course, there are some reasons and basis why traders pick this or that strategy. Usually, everything comes to the research and analysis of cryptocurrency rates, the market trend, and external factors that affect it (fundamental research). You may track the list of cryptocurrencies prices on any large crypto resource such as Coinmarketcap.
Market trends are cyclic. They replace one another and create a wavelike motion on charts. In 2022, the crypto market lived through a bear market trend. Here are the characteristics of this period:
- Investors’ mood is called bearish when live crypto prices drop 20% from their average indicator.
- Investors start to withdraw their funds massively, creating a snowball effect – other investors see the price drop and get rid of their coins too.
- Demand for crypto assets drops.
- Weak and unestablished crypto projects collapse for they cannot survive the crypto winter. Only the strongest remain. So the bear trend is a kind of filter for projects.
- Pessimistic investors’ sentiment prevails.
- People stop believing in crypto, calling it a bubble.
- However, the bear trend is quite a normal thing for the cryptocurrency market. The next cycle is called a bull trend. As you might have guessed, that’s when everybody wants to buy crypto:
- News background is favorable.
- Many new crypto projects emerge and raise investments.
- Demand for crypto assets is growing, and the leading coins demonstrate rising prices.
- Even those who did not know about crypto want to buy it. The buzz around crypto in societies. Those who called it “a bubble” are not willing to buy crypto.
- Prices grow.
Many people mistakenly buy cryptocurrency when there is agitation around it and its price is growing. That is not correct because cryptocurrency prices do not grow smoothly – they always roll back and bite and recover again. So you will still buy assets at a high price, and it can reduce at any moment.
Those who understand the principle of the crypto market work know for sure that the best moment to enter the market is when rates are down. We talk about the bear market tendency as the right time for investors to look for promising crypto assets, analyze projects beyond them and technology, assess their prospects, and buy as long as they are cheap. In this regard, coins with middle capitalization are the best choice. They have room for growth and much bigger chances to multiply their price during the next bull trend. Examples of such assets are Cardano, Polkadop, Polygon, Litecoin, Tron, etc. These assets are the best choice for investment in this bear trend.
Best day of the week to buy Crypto
It is logical that traders look for the opportunity to buy digital assets at the lowest possible cryptocurrency prices. Analyzing crypto charts within a weekly range, we can see that generally, crypto asset prices start to decrease at the beginning of the new week – on Monday, then they gradually grow during the week. Sunday is probably the best moment to purchase crypto, while Friday usually indicates the highest price levels.
However, there are no strict rules on when you should buy assets – you can do it on any day of the week, following your strategy and purpose.
Best time of the Day to buy Cryptocurrency
Large and reliable crypto exchanges operate 24×7 with no days off. Looking at crypto charts in the 24 hours range, we can see that cryptocurrency prices tend to grow during working hours (business hours). Obviously, crypto volatility increases when people actively buy and sell assets, which coincides with business hours matching in different time zones. So the best moment to purchase digital coins is when different world business hours match and come to an end. That is 1 PM to 3 PM GMT, which includes both American and European working hours; and 11 PM to 1 AM GMT to include Azian and Australian hours.
Between 1 PM to 3 PM GMT, traders from Europe close their deals, demand decreases, supply grows, and prices are getting low, so it is a good moment to buy coins at the lowest possible rates before they start to grow again. Such day chart analyses are crucial for daily traders, who generate income from daily market fluctuations.
Also, consider that the largest capital flow from institutional investors occurs during business hours. So wait until they end and open the trading position when prices drop. We can conclude that the best moment to purchase coins is the end of the business day before the next business day starts.
Best month to buy Cryptocurrency
When it comes to the decision on which month is better for crypto investment, it is a macro scale, and that is where fundamental analysis comes in handy. To analyze the asset’s rate from a monthly perspective, we should analyze the global situation in the world that can affect cryptocurrency rates, that is, laws accepted, new regulations, news background, the overall situation with the world’s economy, etc. Even the slightest change in the news backgrounds can spur cryptocurrency rates to go in one direction or another, changing the market trend in the next couple of weeks. So be cautious and attentive, keep abreast of the latest news and updates and draw forecasts for the next crypto price movement on the macro scale.
Where to get a Cryptocurrency price today?
As mentioned above, you may address Coinmarketcap to know up-to-date rates of digital assets. If you want to be an active trader and try this or that strategy, welcome to the WhiteBIT crypto exchange. The platform offers relevant crypto prices and average fees for transactions. There are also charts and the educational sector for a thorough analysis of the market. The WhiteBIT blog will help you understand how trading strategies work in practice, and if you want to keep abreast of the latest crypto news, you will find them all on the blog. It publishes the latest news and the new promising crypto projects that emerge in the industry, their descriptions, and explains how to buy them.
WhiteBIT is not just a crypto exchange platform but a whole family of like-minded people and corporations that work together to expand the adoption of digital assets and make this world better.