Best time to buy your Cryptocurrency

Fredrick Awino
28.06.2022
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No investor gets into the slippery world of cryptocurrency trading for sheer fun and enjoyment. Even if along the way it turns out to be fun investing in cryptocurrency, the basic idea and motivation for everybody is the need to make money. As we have already discussed here, return on investments on cryptocurrency is primarily from playing around with volatility and it’s where people make their margins. 

WARNING: Investing in crypto, or other markets, can be of a high risk for your savings. Do not invest money you cannot afford to lose, because there is a risk for losing all of your money when investing in crypto, stocks, CFDs or other investments options. For example 77% of retail CFD accounts lose money.

Making margins in cryptocurrency trading requires someone who is on top of monitoring market trends. The greatest margins come when a trader buys low and sells high. The only challenge is that buying low would mean investing money when a cryptocurrency is going down. The million dollar question is, what if the cryptocurrency continues losing value immediately after buying? That’s tricky but let us see what tricks work when buying cryptocurrency. 

Preview of cryptocurrency trading and investing 

A small idea that just started in 2009, has however turned out to be a force to reckon with. Cryptocurrency has taken the globe by storm in the past few years. There are numerous stories of individuals who have emerged rich from participating in trading this  “golden” coin trading. As many are emerging rich, many more others have cried foul, felt cheated and sacrificed their savings on the altar of promised returns. 

The negative stories on cryptocurrency aside, if you belong to the group of people who want to invest and grow, then cryptocurrency is the way to go. Becoming an investor in cryptocurrency will guarantee you all that you highly wish for. But to win the long drawn battle with volatility and crypto market dynamics, you as an investor must  first know the best time to buy.  Cryptocurrency is different from the other currencies and this implies that the procedure of buying also differs.

The young generation understand the possibilities in financial technology. There is no doubt that the tech gurus have the potential of coming up with and building something out of the ordinary. Crypto is a digital trade that no human should be found ignorant of how it operates. Other than an investment, it is also an asset. Once you get to understand the worth of a bitcoin, you should then consider buying bitcoin.

Understanding the Cryptocurrency Market

Cryptocurrency is very volatile. In just a single day, the currency can experience multiple rises and falls influenced by the forces of demand and supply. Maybe you have always wondered why exactly crypto investors keep monitoring the strange red, green, blue charts on screen? The answer is simple-the crypto market is changing by the minute and a rise or fall means so much for investors.  

Whether you are a first time investor in cryptocurrency, trying out crypto swapping or intending to expand your ownings, proper timing makes the difference. Specific windows and time offer various prices and therefore you need a proper timing to obtain the best possible price. 

Trading in the cryptocurrency market is a 24-hour affair and timing of cryptocurrency buy should never be a thorn in your flesh. A willingness to invest into cryptocurrency trading should basically depend on your ability to practice dollar-cost averaging. This method enables you to buy some time over an extended duration. 

Fluctuations in the cryptocurrency market are widely varied and strongly dependent upon the specified crypto you are buying. For you that is critical about timing for a crypto purchase, it pays to first analyse the history behind a specific investment of interest. 

Bitcoin for example, is prone to daily price volatility. Just like any kind of investment, the fear of uncertainty and that of failing to totally participate at all arise from volatility. It is a very big and challenging ordeal to know the exact time that would be conducive to buy.

Timing the Cryptocurrency Market

The most popular ways to invest in cryptocurrency is all about timing and the perfect time to enter the market. As you aspire to enter the crypto market, technical as well as fundamental analysis is key. At this particular moment, what dawns on you as an investor would be how you generate and master some automated and algorithmic investing strategies. 

By technically analysing the market, you will need some technical indicators that define the momentum and trend of a specific cryptocurrency. Using your indicators look into the chart patterns of say Bitcoin, Litecoin, or Ethereum. Consider analysing their historical trends too for you to perform a perfect price action forecast. However, let your trading style determine your trend momentum and volume indicators you customize. 

On the other hand, endure to perform a fundamental analysis by making attempts to measure a specific crypto’s intrinsic value. Through undertaking an examination of both the quantitative and qualitative economic factors. Regarding the timing of the crypto market, fundamental analysis only considers geopolitical developments. Sometimes it would also entail news on a specific crypto. If you are aspiring to be a short or medium-term trader this is the best approach for you. 

How can you know the Right time to Buy Crypto with Fluctuating Prices? 

In an ideal market it is quite simple. You as an investor can buy when prices are low then sell when prices go up. Well, it is easier perceived than done. And in reality, things get very cumbersome even for the perceived experts on cryptocurrency price fluctuations. 

Timing the market operations is not an easy task and this is where the dollar-cost averaging approach comes in. it will help you in minimising market volatility impacts. All you need to carry out as an investor is to invest a smaller portion. The smaller portion could be invested into assets, say stocks, crypto, or gold regularly as per your schedule. 

What is meant by Dollar-Cost Averaging?

Every business venture needs a strategy laid down towards achieving the desired end goals. Investing in cryptocurrency is yet another business with a progressive market that must embrace a strategy. The dollar-cost averaging is an investment strategy that is common in cryptocurrency ventures. 

When buying in the crypto market, regularly investing a given amount of money in an asset regardless of price fluctuations in the market is necessary. During the highs you will purchase smaller amounts for the same price. Likewise, during the lows, you will also be subject to larger quantities for the same price.

Ever heard of a “programmed investment”? Well, this form of investment with a primary strategy that aims to streamline the risks associated with price volatility in the financial market. on a scheduled investment, your investment will be regular while at the same time long-term. Dollar-cost averaging aids programmed investment to evade the consequence of single buying that could be made at the wrong time. 

Buying Cryptocurrency: The Best Time 

To be precise, the best time to buy a cryptocurrency is definitely when you presume you are ready. With the dollar-cost averaging strategy now at your disposal, controlling the volatility of your own price becomes easier. 

As the saying suggests, never put in more than you are willing to lose. It is advisable that when investing into the cryptocurrency business, you cannot put in more that you are willing to lose. Reason being you are not guaranteed any winning or an asset class that offers a sure deal. Cryptocurrency ventures offer no security.

Many have become rich and made fortunes from cryptocurrency based on the right buy at the right time. Cryptocurrency winnings are often based on luck and not timing the market. Often before your intent to invest in cryptocurrency, you must be aware that it is a risky venture. The cryptocurrency market is unstable and sharply fluctuates. Which proves to you that luck must also play a big role here. 

Author Fredrick Awino