When Is the Best Time to Buy Crypto?
Unlike stock markets, you can trade crypto 24/7. The market doesn’t close on weekends or holidays either. It’s part of the reason why the prices of virtual currencies fluctuate so much.
Every trader would like to buy low and sell high. But can you figure out what the best time to buy crypto is? While it’s impossible to know for sure, this article offers some insights that can help!
When Is the Best Time of Day to Buy Crypto?
Bitcoin attracts most users, so we’ll focus on that currency. You can check out the BTC price chart to see the recent movements. The experts analyzed BTC values at different times of the day.
It’s a general trend that the price starts increasing in the morning. That’s probably because the working hours begin for everyone, including the traders. The price steadily rises until 11 AM or 12 PM and then decreases. It reaches the lowest value from 2 PM to 3 PM during the day.
The price chart also shows that the price goes up again in the late afternoon and early evening. It’s probably because those who trade crypto as a hobby come home and enter the market. The value goes down later, and it’s reasonably low at around 11 PM.
Those are statistics for Bitcoin, but it’s similar to other cryptos. So, the best times to trade these currencies are 2 PM to 3 PM and from 11 PM to 3 AM. Of course, these are just general trends, which means there could be days when this is not the case.
Note: All times are in EST.
What Are the Best Days to Trade Bitcoin and Other Crypto?
The crypto market is open 24/7, but the traders can’t work around the clock. Most companies are closed on weekends, and most individuals rest on Sundays. That makes this the best day to trade Bitcoin and other cryptos. You could also get decent deals on Saturdays, but the general activity is usually lower on Sundays.
This window often continues into Monday. If you are an early bird, you can get a head start and use reasonable prices to buy crypto in the morning. The weekly trends show the value steadily increases until Thursday. That means you should avoid trading from Tuesday to Thursday. The price then starts dropping slightly, with the best deals usually available on weekends.
Is There the Best Month to Buy Crypto?
According to Bitcoin trends, it seems that August can be a wise time to buy crypto. We can assume that’s because it’s summer. Many traders are on vacation, which is why the price drops.
If you buy crypto in August, consider holding it for a month or two. Many currencies might gain some value once Autumn starts. If you have a bit of patience, the HODL strategy might be profitable in these situations.
Special Events That Could Indicate It’s the Right Time to Buy Crypto
The analysis above includes general trends in the crypto market in the last several years. However, there might be special occasions when you should consider acquiring crypto. Those include:
- After a large crypto crash occurs. Bitcoin is the most obvious example. It reached its new peak in November and then crashed 20%. But the price can’t continue going down forever, at least not for reputable crypto like BTC. That means it’s an excellent time to acquire the currency and wait for its value to start rising.
- You are among the firsts to discover major news regarding a currency. Elon Musk’s tweets about Dogecoin occurred on multiple occasions. In July 2021, he reversed the currency’s price drop. Cryptocurrencies are volatile, and their value reacts to the news. If you believe the price will increase soon, you might still have time to buy the currency at a low value.
- There’s a promising new currency in the market. Of course, many new cryptos appear daily. But if you have reasons to believe a specific currency is the next big hit, it might be wise to buy it soon.