Cryptocurrency is one of the best places to put your money. It is a means of achieving financial success as a trader or long-term investor.
In 24 hours, cryptocurrency can make you a millionaire with your thousands but be prepared for the worst part because nothing comes without a disadvantage.
However, there are some amazing features of the Crypto market that you should be aware of before investing in it. We’ll go over it in more detail in the following article.
This is not to say that we cannot provide you with a foolproof path to success; however, you should be aware that knowledge is power, and each piece of information you receive makes you a more well-rounded investor.
Cryptocurrencies, such as Bitcoin, can have daily (or even hourly) price volatility. This volatility creates apprehension about missing out, uncertainty, or not participating at all. Do you, on the other hand, know when to buy? , When prices are volatile.
In layman’s terms, knowing when to buy a coin or invest in a cryptocurrency is simple: buy when the price is low, sell when the price is high. However, even for crypto experts, this is not an easy task because it is easier said than done.
Instead of buying when it is low and selling when it is high, you can use a strategy known as “DOLLAR-COST AVERAGING (or “DCA”), which helps to reduce the impact of market volatility by investing a smaller amount in an asset such as currency, stock, or gold on a regular basis.
With a keen interest in the most established asset class, many investors are wondering when the best time is to invest in the cryptocurrency market. After all, the cryptocurrency market is rarely stable, so there is no right or wrong time to invest, and this could apply to anyone.
So, let’s get right to it: when is the best time to invest in cryptocurrency?
When no one talks about it
When some crypto coins begin to move or move like a rocket, it may be due to some hyping that the Crypto coin received from people, and when it drops, the dip will be large, resulting in a lot of losses as a Crypto trader. According to early adopters, the best time to buy a coin is when no one is talking about it.
One anonymous investor once told an insider over the phone from Manila, Philippines, that “the best time to buy a coin is when there is blood on the street, everyone is panicking, and no one is talking about it.”
Buying an asset that has potential
Prior to the advent of cryptocurrency, the only market that came close to the 24-hour nature of crypto trading was the global forex market. The forex market is a truly global market that follows office hours; as one part of the world closes at the end of the working day, another part of the world opens for business. Despite the fact that forex is open 24 hours a day, it will be closed over the weekend.
Crypto coins do not have working days; they trade 24 hours a day, seven days a week, all year. The crypto market does not observe any holidays; crypto coin traders trade every night, every week, on Christmas day, Ramadan period, Easter period, and even on New Year’s Eve.
Now that you know that crypto coins do not have a market free day, the best time to invest in coins with high potential is now. What do I mean when I say a coin has high potential? I’m referring to coins that have a good project in them.
There are thousands, if not millions, of Crypto coins on the market, including BTC, ETH, altcoins, and shit coins. Invest in new coins with high potentials, such as altcoins (Polkadot, Cardano, BnB, Vetchain, Wave, Litecoin, Zilliqa, and so on), rather than coins with no potential, such as shitcoins.
You can invest in this coin for a long time because it will increase over time, unlike shitcoins, which will move 1000 per cent and then drop 1000 per cent.
When the selling rate is greater than the buying rate
Another time to purchase a Crypto coin is when the selling rate is higher than the buying rate. The cryptocurrency market fluctuates a lot as people buy and sell.
Beginners in the cryptocurrency market frequently fall into the trap of “Emotional trading or Fear of missing out,” in which buying and selling decisions are influenced by psychological factors such as fear or excitement.
To truly understand when to invest in cryptocurrency, you must be part of a trading or investing community. Because experience is the best teacher, those with experience will only have your back if you follow the rules. If they are correct, you will benefit from purchasing assets at a lower price. Even if they are incorrect, you will invest in the market as prices rise.
Hedging through volatility
The dollar-cost averaging (DCA) method exposes investors or traders to price fluctuations over time. When the market begins to fluctuate in price, the goal of this strategy is to average out any increase or decrease in price and profit from price movement in all directions.