Thursday, June 23, 2022

When’s The Best Time To Buy Cryptocurrency

Remember That Volatility Is The Name Of The Game


Cryptocurrency is volatile by nature. Because crypto generates no cash flow, traders have to rely on changes in sentiment to drive the price. That means the market can swing between rabid optimism, as it did in early 2021, to pessimistic despair, as it did a few months later. The furor around the Coinbase IPO also helped drive positive sentiment to crypto.

So when you have an asset thats driven by sentiment, you have to realize that the emotions of traders propel the market. Thats true in the case of stocks, too, but they also may have a real stream of growing cash flows from their issuing company to accelerate them higher.

This volatility is exactly what draws professional traders, who use high-powered algorithms to make sophisticated trades, something that mom and pop traders dont typically have the advantage of utilizing. Traders like volatility since it gives them a chance to make money thats Wall Streets game.

When Is The Best Time To Buy Ethereum In 2021

Ethereum is an open-source, public blockchain and computing platform featuring smart contract functionality that produces its native coin called Ether . You can purchase this currency in the same way that you would purchase any other cryptocurrency. And, if you are a trader, your hope is that the price goes up so that you can earn trading profits.

To you and I, Ethereum is similar to Bitcoin. This means that its out there on the exchanges, and you can buy and sell it. People have been drawn to Ethereum because of the appeal of being in on the ground floor of something that has the potential to be a huge success. It also operates in a very secure system.

If you are still not sure about Ether, its future and its technology, you should do some research and examine the pros and cons. To determine the value of Ethereum, and the reasons to buy it, you should understand the basic technology, its potential, and what makes it superior to other cryptos.

But if you are already ready to invest in this coin, lets try to answer the following question: When is the best time to buy Ethereum?

According to Coin Spectator, an automated news aggregation service, Ethereum could reach $1,000 in 2018. This is due to its increasing popularity and innovative technology. It is interesting to see that Ethereum spiked with more than 3,995% during 2017 whilst Bitcoin increased by more than 377%.

Should I Invest In Bitcoin

Bitcoin is extremely volatile, but if you are willing to take the risk, first make sure you understand what you are investing in.

Also make sure you arent investing simply because you have a fear of missing out.

There are a number of questions you should ask yourself before getting involved:

  • Do I understand what I am investing in?
  • Am I happy with the level of risk?
  • How much more expensive is it now compared to a few months ago? If so, why am I wanting to buy a thing because its price is higher? Where else in my life do I do that?
  • Is there any evidence to suggest prices could rise even higher?
  • If I buy it now with a view to sell it for even more later, who do I think will buy it from me for that higher price and why?
  • If an asset is so great, why was I not interested when it was much cheaper?
  • Have I convinced myself that I am in some way in the know?
  • If you dont have answers to these questions, its probably not a good idea to invest. If you do buy bitcoin, make sure you arent putting money you need on the line.

    Find out: Cryptocurrency tips

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    Things To Consider Before Investing In Bitcoin

    Like any investment, cryptocurrency comes with risks and potential rewards. Compared to traditional types of investments, cryptocurrency is particularly risky.

    Here are some things to think about before you invest:

    • We dont recommend investing all your life savings on cryptocurrency
    • Its best to see it a bit like gambling so only invest small amount of your disposable income
    • Never invest more than you can afford to lose
    • If you havent got much money left at the end of each month, its best to steer clear of crypto and focus on saving your money instead

    Weigh up the pros and cons first:

    Pro: Cryptocurrencies are global, meaning they have the same value in every country and no exchange rates.

    Con: Cryptocurrencies are extremely volatileand very risky investment. People have also reported having to wait to get their cash out because of technical snarl-ups.

    Is Bitcoin Bad For The Environment

    Whens the Best Time to Buy : A Month to Month Guide to ...

    The digital currency uses as much power as the Netherlands every year, with just 30 countries using more energy, according to researchers from the University of Cambridge.

    Computers that mine bitcoin use up to 1% of the worlds electricity supply.

    While some of bitcoins consumption is renewable , fossil fuels are still being used to power the mining and servicing of the digital currency.

    This is why electric car manufacturer Tesla has stopped accepting crypto payments, causing bitcoin to fall.

    Read Also: How To Buy Cryptocurrency On Robinhood

    When Is The Best Time Of Day To Buy Cryptocurrency

    So as you can see from the charts above, theres a trend here.

    Typically, after 12pm, cryptocurrency prices are significantly lower.

    But the price really dips around 3pm and 11pm.

    And thats a consistent pattern over the last few years.

    So that in theory is the best time of day to buy cryptocurrency.

    > See the latest cryptocurrency prices here!

    Should One Buy Low And Sell High

    Buying low and selling high can be a great strategy for making money with Bitcoin. If you want to treat it as a utility, this will give you the best chance of earning a profit.

    However, if you want to hang on to Bitcoin longer term, then you should keep it. Even if the market skyrockets, you might want to keep your Bitcoin.

    Of course, you can sell some to make a profit. Overall, you need to consider your goals and whether you want to sell your Bitcoin or use it tobuy something at a retailer that accepts Bitcoin.

    Related: How to Pay with Bitcoin

    Recommended Reading: How To Buy Crypto In Binance

    How Does Cryptocurrency Work

    Cryptocurrency is exchanged from person to person on the web without a middleman, like a bank or government. Its like the wild, wild west of the digital worldbut theres no marshal to uphold the law.

    Heres what we mean: Have you ever hired a kid in your neighborhood to mow your lawn or watch your dog while you were out of town? Chances are, you paid them in cash. You didnt need to go to the bank to make an official transaction. Thats what its like to exchange cryptocurrencies. Theyre which means no government or bank controls how theyre made, what their value is, or how theyre exchanged.

    Because of that, cryptocurrencies are worth whatever people are willing to pay or exchange for them. Yep, its pretty wild.

    What Is The Best Time Of Day To Buy Bitcoin

    What Is The Best Time To Buy Cryptocurrency?

    Bitcoin trading is now a top needed skill in financial settings. Knowing the right time to place a buy or sell bid is important in making profits as a crypto trader. Also, having knowledge of technical analysis isn’t a bad idea as well. Before now, financial investment did not include cryptocurrencies. But now that they do, everyone wants to know the best time of the day to buy Bitcoin.

    Since you have also decided to diversify your investment into Bitcoin , you are practically buying currency like the pounds and Euro. However, there are some particular strategies one has to adopt before you can invest in cryptocurrencies such as Bitcoin. To make profits, you need to know the best time of the day to buy Bitcoin and that is what this article is all about.

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    Bitcoin Price And Crypto Market Tease All

    Bitcoin has hit a new six-month high, hitting $62,614 on Monday morning according to CoinMarketCaps price index, leaving it less than $2,000 away from its all-time high.

    It has helped push the overall crypto market cap above $2.5 trillion, which is now also teasing its own record high.

    The cryptocurrency space is no longer dominated by bitcoin in the same way it was when the last peak was seen back in April.

    Today, BTC only represents just over 40 per cent of the total crypto market capitalisation thanks to massive gains seen by Ethereum , Cardano and other leading altcoins. This means well likely see the crypto market hit a new high before bitcoin does.

    Where To Buy Eth And How To Store It

    Once youve done your research and found theres a place for ETH in your portfolio, youll need to decide where and how youll buy and store the cryptocurrency. On a basic level, there are two requirements for buying and holding ETH:

    • An exchange: This is where you can buy crypto with U.S. dollars or trade one cryptocurrency for another.

    • An ETH wallet: This is where the currency is digitally stored. A wallet also has a public address you use to send or receive ETH.

    Here are a few options for buying ETH, and how exchanges and wallets are involved in each method.

    Recommended Reading: How To Make Millions In Crypto

    Here Are Seven Tips To Help You Identify The Best Time To Buy A Crypto And Sell It In The Market

    In a market filled with uncertainties, selling and buying cryptocurrency is not a cakewalk. Considering future returns, it can be a productive and lucrative activity. With a legion of cryptocurrencies in the market and ever-changing market trends, however, the common hurdle every crypto enthusiast faces is when to buy a crypto and when to sell it.

    Here are seven tips to help you identify the best time to buy a crypto and sell it in the market.

    Tether Best Cryptocurrency To Buy 2021 For Low Volatility

    When Is the Best Time to Buy Cryptocurrency?

    Tether differs from many other cryptos as it is defined as a stable coin. Put simply, this means that Tether is pegged to a traditional currency namely, the US dollar. So, in investment terms, one Tether token will always equal 1 usd.

    Tether operates on Ethereums platform and offers a link between traditional FIAT currencies and the growing crypto market. Many risk-averse investors will invest in Tether due to its low volatility and transparency compared to other digital currencies. Although this crypto may not exhibit the wild swings in price that make crypto markets such an exciting place, it is ideal for investors who wish to gain exposure to the market in a low-risk manner.

    Your capital is at risk.

    Also Check: How To Short Bitcoin On Binance

    Binance Best Place To Buy Cryptocurrency With Credit Card

    Currently the worlds largest crypto exchange, Binance is a popular destination for crypto traders looking for the best cryptocurrency markets to invest and exchange hundreds of cryptos every day. Binance offers a vast selection of digital currencies to trade, all through its user-friendly web platform. Furthermore, Binance is ideal for advanced crypto traders as their platform provides a way to invest in DeFi tokens and niche altcoins, as well as major cryptos.

    Binance charges a commission of 0.1% when you place a crypto trade, which is relatively low compared to other crypto exchanges. You can even further reduce this commission by using Binances native token, Binance Coin, to facilitate your trades.

    Depositing with Binance is also super easy and you can even deposit using a credit card or debit card, which many crypto exchanges do not accept. Its important to note that Binance does charge a fee when depositing through debit/credit card however, if you fund your account using bank transfer, you can avoid these fees altogether. Finally, Binance offers a wide range of educational materials for crypto traders to familiarise themselves with the market, including guides, tutorials, and videos.


    Your capital is at risk.

    Best Time To Sell Cryptocurrency

    1. When Negative Investor Attention is high

    Negative investor attention is a signal to pull out of the market. Specifically, increased online activity relating to terms having negative connotations like bitcoin hack herald a short-term downturn. Check for tweets, and google analytics data to gauge these trends. They are an indicator that investor confidence is low, and the market is headed to a downwards spiral.

    2. When there is An Upturn in Crypto Prices

    Warren Buffet advises people to buy when the market is dipping and sell when the market is returning to its former glory. Its a classic rope-a-dope game.

    An upturn is usually an indicator of a correction that brings about a significant dip in values. This is understandable since investors scramble to sell their appreciated assets as cryptocurrency prices soar to cash in on their profits.

    So, its important to sell when prices are jumping to make sure considerable profit is made on the initial investment.

    However, sometimes its also advisable to be patient and keep your holdings since theres no way to be sure about market peaks. This holding strategy sometimes proves pivotal in helping you score an even bigger payday.

    3. When The Momentum Effect Is Weak

    When the momentum effect is weak, meaning bitcoin prices continue to nosedive, its likely this trend will continue in the short run. If making a profit in the immediate future is your goal, then a sharp drop in prices is your cue to sell.

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    Is Cryptocurrency A Good Investment Four Things To Know

    Before you say good-bye to your dollars and hello to Bitcoin, Ether or Doge, there are a few things you need to know up front.

    1. Cryptocurrency is unstable.

    Its truecrypto is about as hot tempered as a 12-year-old. Its value swings way up, only to come plunging back down, and you never really know what youre going to get each day. The value of cryptocurrencies goes through extreme ups and downs. Theres no denying that some are really hot right nowbut for how long? Someone sneezes and the price drops! Investing in cryptocurrency is risky, to say the least.

    But heres the crazy thing: A recent study by Piplsay shows that 50% of Americans think investing in cryptocurrency is safe.2 Fifty percent! News flash: Cryptocurrency definitely isnt a sure thingit carries a huge amount of risk. Lets be real here, all investing comes with some level of risk. But why jump all the way to the deep end with something this up and down?

    2. Cryptocurrency has lots of unknowns.

    Theres still a lot that needs to be ironed out with how cryptocurrencies work. Think about it: Nobody even knows who the founder of Bitcoin is! Only a small percentage of people in the world really understand the system and know how to operate it. Ignorance makes you vulnerable. We always tell people that if you cant explain your investments to a 10-year-old, you have no business investing in them to begin with. Youre setting yourself up for a big mess.

    3. Cryptocurrency makes fraud easier.

    Best Day Of The Week To Buy Ethereum

    Top 10 Best Crypto To Buy Now For 2021 | Best Cryptocurrency To Invest 2021 | Top Altcoins

    Unfortunately, nobody can tell you that e.g. Monday is better than Wednesday or any other day. Because there are multiple factors that may change the price of the digital coin any day of the week. In order to determine whether or not it is a good time to invest in a cryptocurrency, and in ETC in particular, one should keep an eye on the following:

  • Learn the blockchain technology
  • The decentralized and transparent nature is what makes blockchain highly secure and almost impossible to hack, because a hack to one ledger would cause a discrepancy in the entire network that will be ignored. For a currency like Ether, this would mean millions of computers. So the larger the network, the more stable the currency.

  • Understand the risks
  • Cryptocurrency is still a young technology, and faces many challenges. The prices of digital coins are highly impacted by public sentiment about the currency. It will continue to fluctuate as companies and financial institutions make decisions of how to incorporate it into their businesses and workflow. Its also highly sensitive to regulatory changes .

    There is also risk inherent to the exchange itself. Just like the cash in your wallet, the safety of your crypto coins depend on your own diligence. It means you should only do business with people and organizations you know and trust, or who have an established reputation.

  • Read the news
  • Coinbase
  • Technical analysis
  • Read Also: How To Track Crypto Portfolio

    Theories Behind The Specific Days

    Multiple theories are explaining how to determine the best timing to buy Bitcoin. We are going to look into three

    If you would have bet on the right coins this year you could easily have 10xed your capitalYou could even have made as much as 100x which means you could have turned $100 into as much as 10k.Experts believe this will happen again in 2021, the only question is which coin do you bet on?My friend and cryptocurrency expert Dirk is personally betting on 3 under-the-radar cryptocurrencies for huge ROI in 2021..

    • The first theory suggests that the demand for Bitcoin slows down during the weekends pushing its price to be lower on Monday and higher on Fridays
    • A second theory suggests that most people tend to buy Bitcoin during the weekends and begin trading during the week meaning that the volume is high on Mondays
    • A third theory suggests that it is best to avoid buying Bitcoin during periods when 9-5 workers get paid. The more the money, the more the demand for Bitcoin

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