Everyone that has been thinking of alternative ways to get some more money has probably considered cryptos at some point. The trade is not easy and naive at all. There are a lot of hacks and tips on how to make it in this area of the market. In this article, we’ll give you some tips on what’s the best time to trade crypto, and why you should know that.
General knowledge is that there are a lot of coins in the market at the moment. An equal amount of software and applications for trading as well. Unfortunately, not every one of those is legit. Before you decide to invest your money, inform yourself about the key stuff. Carefully read other investors’ experiences, ask a friend who’s in the business, and read, read, read. That will help you get used to the mechanisms of the crypto deal, and save you from money loss and stress.
Is time the money?
What’s specific about working with cryptos is that the crypto market open time is constantly. There are no weekends, holidays, or breaks. Everything is working non-stop. With more and more people joining this area of the market, cyberspace can sometimes get crowded. Believe it or not, time is essential here. There is always a good and bad time to invest. Let us elaborate on this.
Is there such a thing as the best time to trade crypto?
To answer this question, we will start with the basics. How does time matter in this market? As we all know from the economic side of the regular market, the law we abide by is the law of supply and demand. And time does have an impact here.
Imagine you are going to the store to buy some groceries. At some point, a crowd of people appears and wants to buy the same stuff as you at the same time. If the supply is not that great, but the demand is, let’s presume the seller can start giving the products to the ones offering to pay more. In other words, the rates go up, and you will pay more for the same product. Switching back to cryptos – you will pay more for coins when the demand is higher.
What to do?
Multiple sites like nerdwallet.com can help you learn the basics of crypto. Also, to find the best time to buy cryptocurrency, help the investors get the best prices and simultaneously make good profits. According to research, there are popular, busy, and not-so-busy times in the market.
There’s a famous investment strategy called DCA or Dollar-Cost Averaging. It’s based on sharing the planned investment money in equal amounts. Those amounts are then sporadically invested after tracking the situation on the market. As the demand and prices rise, you invest less money, and vice-versa. Your task would be to research and prepare for crypto day trading.
What’s the best time to trade crypto?
We are sure that by now you understand the importance of time in this matter, but let us just say that daily, the value of cryptos can diverse up to 50%. This is why it’s good to know what’s the best time of day to trade crypto. If you learn the pattern, you’ll be able to make more money, and your investments will pay off. As explained, the best time of the day to trade crypto is morning, particularly early morning. If we look at the charts for example Bitcoin, we can see that the prices drop after midnight, with a significant drop at 3 pm and 11 pm.
When you look at it from the economic aspect, in these hours the prices are at their lowest, which can be a good opportunity to purchase coins, wait for the prices to reach their peak, and sell at the highest price range. This can be a double-edged sword though. If the demand for the coin you’re working with gets lower, you won’t be able to sell it anyway. We friendly advise you to track the moving on the market by yourself, for the cryptos of your choice, and make some notes, or a simple chart. Do a daily one, a weekly, and a monthly one, and compare notes. You will become an expert in no time.
Bonus tip: As the market is global and there are traders from all around the world when doing the research, check the time zones. The best time to trade crypto UK will differ from the best time to trade crypto in Asia or other parts of the world.
To resume
Things you should remember regarding this topic:
- Staying informed is very important
- Being safe in the market is essential, and you should master the basics before you move forward
- The best time to trade crypto differs from place to place because of the time-zones
- Consider the law of supply and demand and plan your trade for a maximum profit
- The idea of maximum profit is based on buying at the lowest price, and selling at the highest, have that in mind
- Read, read, and read again to collect as much info as possible
- Use the DCA strategy or make your own based on the collected data
- If something seems fishy, stay away from it, there are a lot of scammers
- You can always consult your friends or acquaintances that aren’t newbies in the game
Conclusion
This market is a serious deal, and it should be taken as such if you wish to partake safely. The key here is to be as informed as possible, especially if you are new on the market. The law of supply and demand works the same as in the ‘regular’ market, so make sure you dig through data and build a strategy. Even the Times itself writes on crypto, so there is a lot of reading material out there. The central thing here is to follow the market movements and find out what’s the best time to trade crypto of your choice.