Cryptocurrency trading can be done 24/7 but is a highly volatile market. Besides Bitcoin, there are more than 2,500+ cryptocurrencies available to trade but their prices swing a lot. Is there a perfect time for purchasing cryptocurrency? Will it help you buy low and maximize trading profit?
Reasons to find the best trading timeframe for buying cryptocurrency
You get to buy anytime during the day and even at night. So, does it matter, when to buy? Actually, all trading times are not the same. Optimization of the time makes a difference. Below are the crucial reasons –
- Optimal prices – The prices can differ up to 50% daily, so you need to identify the ideal price point or you are wasting cash on inflated trades.
- Easy trades – Trading demand for all cryptocurrencies differ. Besides Bitcoin and other top 100 cryptocurrencies, there are others outside that will be hard to trade. Buying at the wrong time means you get a bad price or will be unable to purchase the desired amount. Therefore, finding the right timeframe helps to trade cryptocurrency easier.
- Maximize profits – The knowledge of expected price to fall or rise helps to maximize profits. If you predict prices will rise by 20% at midnight, then you know what the bestselling time is. Finding perfect trading time for buying cryptocurrency keeps you feeling calm.
How will you find an optimal timeframe to purchase cryptocurrency?
As the old saying goes:
‘Buy when the price is low, sell when the price goes high’.
So, when does this occur? Actually, there is a pattern in the price fluctuation of cryptocurrencies. For example, Bitcoin has historical data as it was the first cryptocurrency invented. When you analyze the charts of several years, you will identify a trend that after midnight, the prices get very low. It actually dips between 3 pm to 11 pm.
Over the last years, this is a consistent pattern. In theory, you can use this time now to buy cryptocurrency.
A buyer needs to buy at the lowest price, which is available around 3 pm to 4 pm and from 11 pm to 12 pm. It is a cheap entry point. Each year certain variables are experienced in the cryptocurrency market.
- A bullish or bearish market
- Trader’s volume
- Available cryptocurrencies for trading
- Updates and news released
- Exchange platform used for trading
Fortunately, in every case, the price movement has followed a similar pattern over the past several years.