Are you contemplating investing or trading in crypto? While most people know what to do to enter the cryptocurrency industry, they still wonder about the timing. When is the best time to buy/sell assets in this digital currency industry? If that question has ever bothered you, why not skim through this blog and find an answer? Never again would you want to go unanswered. Although lenders, such as Bugis Credit, offer appropriate investment advice to clients. Crypto market timing is significant in trading successfully, but it isn’t easy to achieve. Let’s talk about this time and see how we can discern if it’s right to buy/sell crypto assets.
When to Buy/Sell
Some will tell you that the best time was either yesterday or second-best right now. That answer is based on the historical background of crypto prices since their invention. For instance, those who bought Bitcoin at inception did so at minimum costs and years later became millionaires. To them, yesterday seems to be the right time. But that time has passed, and because we’re talking of the present, it can’t apply.
The truth is the best time to buy an asset in the cryptocurrency industry is after doing thorough research of what you want to buy. You have to make sure that you’re doing at the right time, the correct timing of the market cycle. The proper timing is just when the market is ending bear low prices.
The crypto market consists of ups and downs. It is also volatile, so it’s impossible to give a specific time to buy. That’s why it’s advisable to keep track of the market trends and watch what other crypto users say on social media platforms. Their sentiments have been observed to move the price of crypto.
Further, besides those influences from social media that move the pricing unfavorably for a short while, you should know the basics that drive the price of the crypto you want to buy. It would be better to buy that asset at the time it’s first traded in the market than a few months after it has existed in the market.
Factors to Consider for Cryptocurrency Buying/Selling Time
These factors play a significant role in helping you to determine when the right time to buy/sell crypto is. You will be making a wrong move at the wrong time if you don’t consider them.
- Why are you buying the asset? Once you purchase it, what will you do with it? Will you give it as a donation, gift, or sell it? The purpose of buying crypto will influence whether a particular timing is right or not. If you’re to sell it, then you wouldn’t want to make a loss. Buy when prices are low and sell when they’re high.
- Analyze your financial situation. Cryptocurrencies are more expensive than traditional ones. If you don’t have enough money to buy them, it might not be the right time. Take into account your budgetary needs and assess the financial situation before purchasing crypto.
- The market’s current state. The crypto market is volatile and will possibly remain so for long. Take time and research the current situation. Know what’s going on, collect data, analyze them, and determine whether it would be the right time to buy/sell them.
- Crypto supply Vs. Demand. The demand & supply concept influences crypto prices. When there’s little or no market for them, prices will be low and vice versa. That can also affect their supply, meaning that they won’t be available even if you need them.
- Day of the week. You can get cryptos at low prices during the weekends when they’re not highly demanded. Weekdays are perfect for selling as prices are higher.
- International stability. Cryptos like Bitcoin are global, and any uncertainties in any part of the world affect the market. Political instability can easily cause prices to rise. Even chaos between nations can impact the purchase and sale timings of crypto industry assets.
Crypto Buying/Selling Timing Strategies
Since we might not comprehend the exact perfect time to buy/sell cryptos or invest in them, here are some strategies that can help us decide when it’s the right time:
- Buy Low, Sell High Strategy. This is also called “buying the dip” and involves buying assets when prices are low or fall. It entails the analysis of charts, past trends, and short-term and long-term average movements. Traders can buy “big dips” (when prices fall below average) or “little dips” (price drops from where it was last placed). After buying the dips, you can either sell assets fast for a return or hold onto them for incremental gains.
- Selling During a Sudden Peak. Some studies have shown that the best time risk-free to trade cryptos would be after the prices have experienced a sudden increase of more than 20%. You can sell them a week after the rise.
- Buying/Selling When Rates Are Lower Than the Average Historical Performance. Using the “buying dip” method can be challenging, where it’s hard to predict how prices will be in the coming periods. As such, consider buying or selling when the value of the crypto becomes lower than its average historical performance. If you’re buying, do so when the price is off-peak.
When Not to Buy/Sell Crypto
Even after analyzing every situation, not all times are suitable to proceed. You need to watch out and study price patterns closely before jumping into buying or selling your crypto assets. Never trade under the following circumstances:
- When you don’t understand the technology involved. The blockchain is one of the cryptos major technologies and is highly innovative and complex. Starting the buy/sell journey without completely understanding it will be unwise. Try and learn about it and get a firm grasp of how it works first.
- When you have FOMO (Fear of Missing Out). The fear of missing out on significant events and hyped things like Bitcoin’s value can cause you to make inappropriate decisions. Prevent such fears from controlling you to avoid impulsively entering crypto investment. Instead, only trade cryptos are based on logical decision-making and not emotions.
The Bottom Line
Buying or selling cryptocurrency nowadays isn’t hard as it used to be before. The challenge though is that it’s not easy to predict when the best time is. The market unpredictability and price fluctuations are some reasons why that is so. However, with proper strategies and a focused understanding of the crypto market, you can determine the right time to buy or sell crypto.