When to buy and sell cryptocurrency: a short guide for the investor
Features of time for cryptocurrency trading. When to buy and sell cryptocurrencies? Find out how times, weeks, and months can affect buying power.
In the stock market, investors and traders use various methods to determine when to make a trade. With their help, they can reduce the risks of losing funds and maximize profit during the trading session.
Similar methods can be used in the cryptocurrency market. Crypto investors and traders also use certain strategies for successful trading. One of the most important questions they have to decide is when is the best time to buy currency.
When is the best time to buy crypto?
On numerous specialized forums, novice crypto market participants often ask when the coin starts trading. It is difficult to give a definite answer to this question. Nevertheless, certain indicators can help to navigate the cryptocurrency market and reduce the risk of losing your deposit to a minimum value.
The best time to day trade cryptocurrencies
Cryptocurrency trading has one distinctive feature, a distinct advantage. So, the trading schedule for digital assets is not tied to the working hours of markets and exchanges. Cryptocurrencies are available for trading around the clock: 24 hours a day, 7 days a week, all year round. There is no time limit and no time zone or working hours.
However, for many investors, it is still customary and convenient for many investors to trade during the day session rather than at night. Of course, according to the time zones of their country.
That said, the crypto market does not exist autonomously at all. The activity of traders is influenced by major exchanges and traditional markets, which tend to be tied to trading schedules. There is still a correlation between capital flows and different types of assets, so it is important to pay attention to the charts of the largest classical markets as well. For example, when trading opens and closes on the top 10 largest exchanges in the world, you can feel the impact on traders' activity in the crypto segment as well. Such exchanges include the Tokyo Stock Exchange, New York Stock Exchange (NYSE), Shanghai Stock Exchange, Hong Kong Stock Exchange, National Association of Securities Dealers Automated Quotation (NASDAQ), Euronext, and so on.
Let's answer the main question traders are asking: when is the best crypto to day trade? Since bitcoin is the most popular cryptocurrency, it is the most often bought. With no time limit, a trader can choose any time to trade Bitcoin. But the best time is, of course, the period of high market activity, before the beginning of trading sessions of classical exchanges, on the current news background, when the exact dynamics of the asset trend are formed. In addition, there is a favorable time to buy cryptocurrencies during longer trading cycles - for example, weekly.
So, when is the best time to buy cryptocurrency? We can conclude that the best time to trade crypto as part of an intraday strategy is early morning or afternoon.
The best time of the week to buy cryptocurrency
Some trends in the cryptocurrency market show that certain days of the week make trading more profitable. This is again due to the correlation between cryptocurrencies and the stock market and the accepted activity on classical exchanges. Therefore, according to statistics, there is a lower activity in the market on weekends: Saturdays and Sundays. On weekends there is a higher probability of manipulation movements and less trading by professional traders. And if you ask, "when do crypto markets close?" or "does crypto trade 24/7?" it will be an easy answer - it works 24/7!
By the day of the week, if you look at trading activity, most often, the rate increases along with activity starting on Monday and moves upward by the end of the week. At the weekend, most often, the rate decreases.
Therefore, experienced investors and traders know that Monday or, at most, Tuesday is considered the most favorable day of the week for trading cryptocurrencies.
In addition to the best time of the week to buy digital assets, there is also the best time of the month to buy them.
Best time of the month to buy cryptocurrency
Various trading patterns are formed during the month. With their help, a trader can predict the likely price movement in the month and make the best deposit/withdrawal from the asset. As a rule, in the first half of the month, buyers try to buy cryptocurrency at a bargain price, thereby moving the exchange rate higher. Therefore, the first weeks are the priority for purchases. By the second half, sellers enter the market, who benefit from the sale of the investment at a more favorable price. In addition, at the end of the month, there is a struggle between trends, which eventually characterize the movement of assets at this time. By how much the value has risen or fallen compared to the previous month. Knowing this, investors can use the increased volatility to better buy or sell cryptocurrencies.
We also advise keeping a close eye on monthly trends to avoid making mistakes and losing the invested money. Technical and fundamental analysis can help with this.
What is the optimal time to buy cryptocurrency for beginners?
The biggest expectation for an investor who builds a crypto portfolio in the medium to long term is to buy the "bottom" of the market. Everyone wants to buy cheaper and sell dearer. A price bottom is the minimum price of a cryptocurrency that is possible at a given stage of development. A price bottom can be formed gradually, with a gradual decline in the asset's value and the bear market's long-term dominance.
Bitcoin is characterized by a price movement in a four-year projection (about how long it takes some period from one halving to the next). During this period, the cryptocurrency price updates the historical price maximum and falls to the minimum value for the last 4 years. Many investors dream of buying back, at this minimum, the bottom of the market.
For example, in the last period from 2020 to the next 2024, Bitcoin managed to update the price low at $15,460 on November 7, 2022. This is the price that has so far been the most profitable to buy back. If an investor had time to catch this price, they could lock in about 40% profit in three months, even though the market is still bearish and prices are far from historical highs.
The maximum price is an opportunity to lock in the maximum profit from an investment.
Using Bitcoin as an example - the cryptocurrency was worth a record $69,020 on November 8, 2021. At that price, absolutely all investors were profiting from their investment. Some even took advantage of the best points to buy the cryptocurrency and recorded tens or even hundreds of percent gains. The peak of the rate is the best time to sell cryptocurrency and calculate a profit on an investment.
How do you determine the best entry and exit points to sell crypto?
Warren Buffett, the famous billionaire and investor, formulated the most important rule of all investors: buy when everyone is scared, sell when the market is greedy. This idea perfectly demonstrates the crowd's reaction to changes in the market situation. When the market grows, it seems to everyone that this growth will be infinite, investors buy and buy cryptocurrency, thereby making it overbought: a state where the real market price is much lower than the selling price.
And vice versa: when the market bleeds, everyone panics. Investors try to sell crypto assets as quickly as possible to save at least some of their investments. Buffett suggests moving against the crowd: buy when everyone is selling in panic, and sell when everyone is buying madly.
There is even a special indicator of crowd behavior in the market - The Fear & Greed Index. It is a 100-point scale, which reflects changes in market sentiment about a selected asset. For example, Bitcoin or the stock market. In this case, the minimum values from 0 to 10 points show Extreme Fear. This means that the rate of the asset is falling significantly and the time to buy is almost optimal. And values from 90 to 100 points are Extreme Greed. A time when the crowd believes in infinite To The Moon, which means it's time to sell.
Let's take The Fear & Greed Index for Bitcoin and the stock market as an example. The Bitcoin Index is now neutral. 48 points out of 100. This index hasn't changed critically much in the last week. It reached 50, which means that the asset's price movement is temporarily sideways.
The minimum value on the market decline was recorded in the summer of 2022 - investors felt only 8 points and Extreme fear.
For the stock market, there are no big movements now either. Also, neutral sentiment is felt in the market, with a slight inclination towards positive dynamics - the index shows only 55 points.
What time does crypto market open and close?
The peculiarity of the cryptocurrency market is that it functions 24/7, unlike the traditional stock market. Therefore, the question of when trading in digital assets opens and closes is impossible to answer. After all, trading is non-stop, there are no weekends, no holidays, and no lunch breaks. The trader is absolutely free to choose a convenient time to trade.
Is it possible to trade cryptocurrency 24/7?
As mentioned before, the cryptocurrency market does not interrupt its work for a single day. However, it is impossible to completely exclude the factor of technical failures and human influence on crypto trading platforms. Sometimes an exchange closes its work due to the detection of an error in its work or due to a planned update. As a rule, this time is agreed in advance with the community of users, the announcement is published on social networks, and the trading stoppage is not a surprise for traders. In addition, these downtimes do not last more than a couple of hours, and for many, they are not noticeable at all.
And if you are wondering, "Does crypto trade on weekends? The answer is, "Yes!" After all, there are no weekends in the crypto market in the classical sense.
Is pattern trading applicable to cryptocurrencies?
As you can see, cryptocurrency trading is not limited in time. This is one of the key advantages of this asset type. But that doesn't mean that cryptocurrency is an unusual asset for traders, and pattern trading doesn't apply to it.
Does pattern day trading apply to crypto? Of course, it does! Methods of analysis and forecasting of price movement also apply to cryptocurrencies. Both for intraday trading as well as for medium and long-term forecasting.
For example, cryptocurrency day trading rules are that traders and investors should always consider the current news flow, important market events that may occur on a given day, and other traders' activity tracked on that day.
How to pick crypto for day trading?
In this case, it all depends on the decision of a trader or investor. He can choose bitcoin or any other asset. The choice can be influenced by fundamental and technical analysis, possible negative news about the asset, regulatory intervention in the existence of the crypto market, technical updates, and marketing pluses of a particular coin as a factor for value growth.
Of course, bitcoin and currencies in the top 10 in terms of capitalization are most often the most profitable.
How often can you buy and sell cryptocurrency?
Could we buy and sell crypto same day? The cryptocurrency market is the most democratic of all available financial markets. There is high decentralization, availability of investing and trading, variety of assets, and no time limit for any transactions. Another example of democracy is the absence of restrictions on selling and trading cryptocurrencies.
A trader can conduct operations an unlimited number of times. Guided only by their concepts: the level of profitability or profitability, market activity, the amount of commission paid to the trading platforms, and personal time for trading. Only these factors influence the efficiency and quantity of operations.
Especially there are a lot of strategies aimed at high-frequency trading and a large number of buy and sell operations. For example, these include swing trading, intraday trading, trading with a trading bot, crypto arbitrage, and so on.
Cryptocurrency market hours allow you to load the investor for as much as he is physically and mentally strong enough. Otherwise, it would be possible to trade without stopping at all.
When is the best time to buy Bitcoin?
What is the best time of day to buy bitcoin? When to buy cryptocurrency Bitcoin and when to sell? As stated earlier, Bitcoin is considered to be one of the most profitable and popular coins. You can buy it anytime and on any day of the week. Most often, it is bought at the beginning of the week and before lunch, when the value of the virtual coin is not so high.
To choose the best time, you still need to consider several factors and before you make a deal:
- Evaluate how volatile the market is at the moment;
- Conduct a supply and demand analysis of the venues;
- View Bitcoin-related materials on leading news portals and publications.
The best time of day to buy Ethereum
As you know, transactions on the Ethereum network require gas fees that go up and down in value based on how busy the network is. The most frequent declines in gas fees are on weekends and when markets in the U.S. are down. However, these are rough estimates, so the best Ethereum trading hours are most likely the morning hours when trading is just starting.
How do you trade altcoins?
How to day trade altcoins? There are several nuances to trading altcoins. You should only make a trade if you have a clear strategy. You should first establish a goal and stopping conditions, identify your level of income, and choose a stop-loss to reduce your losses.
One must remember that many altcoins are linked to Bitcoin, and the BTC price determines their value. Also, you should know that a significant portion of altcoins lose their value in the market after a certain time, so their number in the investment portfolio should be limited.
Which altcoins are more suitable for trading?
Each investor chooses the asset he will trade. Tens of thousands of cryptocurrencies on exchanges are always available for trading. However, the best altcoins to trade are the highly liquid coins represented by large projects—for example, LINK, DOT, ADA, TRON, SOL, MATIC, and others.
To sum up, we can note that many factors influence the dynamics of the growth of the price of cryptocurrencies. In general, according to the average data, the value of most assets is minimal on Monday mornings and goes up until it goes down again by the weekend.
A more or less favorable day of the week to buy cryptocurrencies is also Monday or Tuesday. Traders and investors need to consider many parameters in the market, news, analyst reports, apply technical and fundamental analysis to make a deal to buy or sell cryptocurrencies with maximum benefit to themselves.
This is especially important for novice investors and traders who are just getting to grips with the market and need to be more careful in their risk assessments before buying or selling virtual assets.