What is the best day and time to buy and sell crypto? When it comes to money and the money market, probably no one can say for sure what is going to happen the next day or the next week, leave alone forecasting a month or a year beforehand.
It is the same for cryptocurrencies, which are extremely volatile in nature.
There are numerous varieties of cryptocurrencies and the sea of investors and traders are stepping into the market every day.
And, the crypto market never closes. This means that the prices can change any time, when you are sleeping, or having dinner with your friends, or even while enjoying your BBQ on the weekend! All these factors make things even more difficult.
Therefore, knowing the right time and the day to place your bid along with some basic technical analysis is not at all a bad idea for an investor to enhance the chances of making profit.
It will also help you to diversify your investment and follow the specific trading strategies to achieve your goal while investing in cryptocurrencies.
However, it is hard to tell when is the right time and the day to invest in or trade crypto. It may not be what you think is right.
However, some tips and assumptions can be outlined to judge the best time to step into the crypto market. This article is all about that.
Best Day and Time to Buy and Sell Crypto
Since the whole thing is experimental and is based on assumptions, it is really difficult to envisage the best time and day to buy crypto coins.
However, considering the volatility, a few things can be said to determine the right time to enter the market.
Cryptocurrencies are not like the traditional financial assets like the mutual funds, stocks, and fiat currencies.
These digital assets are more volatile and therefore can be riskier than making any conventional investments. This means that in a day you can make quick money and lose it all on the next.
Adding to the difficulty is the different opinions of different economic analysts. Some say Monday is the best day to buy crypto since the price is considerably low, just as the week-long daily averages spreads suggest.
Others say, Friday is the best since the price is at its peak before the weekend. Check out Best VPNs for Crypto Trading.
Investors have all bank transactions made, and with their hands on money and the prices of crypto coins dropping, it creates a steady selling cycle before the weekend and buying again when the week begins.
As for determining the best time to buy or sell crypto, it is equally difficult. For example, if you buy them in December, it is highly likely that you will end up on a loss.
On the other hand, if you buy them in January, you will have all the chances to make considerable profit by the end of the year.
Therefore, you will need to know the indicators and follow what the economists say backed by their near-accurate analysis reports and several determining factors.
Not going into the complications of the analysis of the economists, it is best to follow their models created. According to it, they suggest that:
- You should determine the price fluctuations before you choose the best time or day to buy and sell crypto
- You should also determine the momentum of the crypto because if it is performing well now it is likely to do so for some time and
- You should make your trades when the value of the specific coin you are dealing with is found to have appreciated by more than 20% in a week.
Several economists have also come up with a set of theories that every crypto trader and investor should follow to determine the right time to buy crypto and to enhance their chances of making profits.
These are based on multiple approaches and are shortlisted below.
- Theory 1 – The demand seems to come down on the weekends which pushes the price of it down on Mondays. Alternately, the price goes up on Fridays with an increase in the demand as the weekend starts.
- Theory 2 – The trading volume is highest on Mondays because more and more people want to buy them and execute their trading plans during the week. In such a situation, you as a trader should be more cautious while making a purchase and also follow the best trading strategies as the week goes by.
- Theory 3 – Most of the experienced traders usually do not buy crypto coins on those specific days when the 9-to-5 workers draw their salary, weekly or monthly. Whether it is at the beginning of the month or in the middle or end of it, the logic is quite evident and simple. People have more money in hand and hence the demand and prices of crypto coins will be higher as a consequence.
Now that you know about the days to avoid and days to choose, it is now time to know the best time of the day to buy and sell crypto.
Once again, to choose the specific timeframe, which can be morning, afternoon or in the evening, you will need to consider and look for a lot of factors such as:
- The time when you expect some announcements
- The response and behavior to these announcements
- The fluctuations in price and
- The time when it enters into a period of stability.
When it comes to stability, you will be better off if you determine global stability because geopolitics play a major role in the crypto market price fluctuations.
This means that political events like Brexit, US-China trade war and other factors should be taken into consideration.
As a rule of thumb, buy cheap and sell dear. This means that you should think out of the box and on the converse.
You should buy when everyone else is selling as that will be cheaper and sell when everyone is buying to fetch a higher price and profit.
Averaging down is the best policy to follow in this matter so that everything works out in your favor.
A deep research is mandatory before you buy or sell crypto so that you can make worthwhile and productive decisions and choose the right day and time to trade. And, of course, do not invest more than you can afford to lose.
Role of Technical Analysis to Determine the Best Time to Buy Crypto
Technical analysis plays a very important role in determining the right time to buy or sell crypto in many ways.
It is very important to make the best investment decisions.
It will allow you to pinpoint the uptrends and downtrends specifically to be a better decision maker while trading crypto by knowing the support and resistance levels that affect the price of the crypto coins.
Both these levels have different significance such as:
- The support level signifies the price of the assets below which it will not fall for a significant period of time.
- The resistance level signifies that specific price point where any further rise in the price of the coins is halted due to the surge in the number of sellers who want to sell their holdings at that specific price.
When you know such technical details it will be much easier for you to design the perfect layout of trading your crypto.
There are also a lot of crypto trading indicators that will help you significantly in analysing the technical aspects of the crypto market, its price, and trading.
Combining both, you will come to know about the right entry and exit points, turn points, and different arithmetical aspects.
The Best Time to Sell or HODL
To know the right time to sell or HODL, you will first need to study the price movement of cryptocurrencies. You can take cues from several websites to study the price charts and trading signals for that.
This will help you to evaluate the exact time and day of the week to trade crypto by computing the price of coins for each day following the Trend Dependent Movement or TDM. Also consider the historical data along with it for an accurate prediction.
It is also recommended that you use one of the several crypto alert tools to get notifications as and when there is a price movement. This way you will get the best price advantage.
Ideally, the best time to buy is also the best time to sell your crypto coins. This is based on the simple logic that when you are buying someone else is selling and vice versa.
However, as an investor, you should always focus on the long term benefits rather than act on a short term mindset.
This will bring drastic changes to the health and fate of your investment. Remember, crypto trading is not for those who have a mindset to become rich quickly.
The concept of shorting is a good thing to understand regarding this matter. This is a term used very commonly in financial trading.
It means opening a position when the price of the coins decreases since it is more profitable. The profitability however depends on the amount of decrease in price.
Ideally, when to sell your crypto is very easy to know: sell when the price is high. However, as an investor it is important for you to have a well defined exit point so that you can use it to close a trade.
This will not only allow you to gain more but also know when your investment went wrong, if at all. The simple rule to follow is to know your target irrespective of the direction, and do not be greedy!
You should always hold on to your crypto for the long term. This is the best strategy to follow while dealing with the digital assets.
This is because it will gain in value, much unlike the fiat currency. You can make a lot of profits but it may soon become valueless.
It is evident from all the theories and opinions stated above, forecasting the best day and time to buy and sell crypto is pretty difficult. You will need to consider factors like prices, news, human behavior, and of course, personal preferences.