How To Know When To Buy Cryptocurrencies
The most common way that investors enter the crypto market is to purchase a cryptocurrency on the exchange without timing your entry into the market. While BTC can be a solid investment, buying the crypto at the wrong time can cause you to pay more than necessary for your BTC.
When To Avoid Purchasing Crypto
You do not want to purchase crypto during a strong growth period. After growing for a period of time, the BTC may then fall to an initial level and you will lose some money. There is always a risk in buying any investment, but you are able to reduce your risk by studying the market and buying at the right time.
Also, if the crypto is trending downward, it will continue to trend downward and it is a bad idea to invest at this time. If you purchase crypto at the wrong time, then you will not only get a bad price, but you will also be unable to purchase the quantity you want.
When To Purchase Bitcoin
Bitcoin is the original cryptocurrency and, therefore, has the longest history. By looking at the history, you may even be able to determine the best time of the day to purchase Bitcoin. Otherwise, the value of a cryptocurrency can be influenced by whether there is a bear or bull market, the number of traders that currently exist, and the type of cryptocurrency exchange you are using.
Fortunately, while Bitcoin has increased in value over time, the fluctuation in the value of Bitcoin has remained relatively stable. For example, it is best to purchase outside of the peak international trading window because cryptocurrencies are traded on an international market. Also, the demand for cryptocurrencies tends to be lower on the weekend, so this is often a great time to buy.
Follow the News on Cryptocurrency
There are always new stories to follow. There might be a government that plans to ban a particular cryptocurrency or release its own version on the market. Another country might choose a cryptocurrency as an official tender. Another country might announce plans to introduce new regulations. Each of these events can lead to a fluctuation in prices.
Fortunately, if you start using a crypto exchange regularly, you can follow how the value of a particular coin fluctuates, and you are able to figure out how and when you would like to enter the market.