How to Trade Cryptocurrency: A Practical Guide for Beginners

Buying and selling cryptocurrency can be a thrilling and potentially lucrative venture. With the ever-growing popularity of digital currencies like Bitcoin, Ethereum, and Litecoin, more and more people are getting involved in the crypto market. The best day to buy Ethereum is Wednesday, with the currency showing 0.584% average gains. Similar to Bitcoin and the rest of the crypto market, Friday is the only day of the week that is showing negative currencies news and headlines 2020 gains for Ethereum.

Macro News and Events

For the purposes of this report, we analyzed trading data dating back to January 2016. Bitcoin and Ethereum were analyzed separately, whereas we settled on the total crypto market cap as an indicator of general crypto performance. It might not be the most optimal metric, but it does capture market trends beyond BTC and ETH effectively. Timing can be crucial when it comes to investing in cryptocurrencies like Bitcoin (BTC). As such, many wonder if there is a best day to buy Bitcoin to maximize their returns.

• Clear objectives and risk management strategies help maintain focus, protect capital, and navigate changes in the market.
• The FET token has benefited from the broader AI hype that resonated across traditional and decentralized markets.
• You don’t need to meet formal educational requirements or qualifications to trade crypto for yourself.
• When it comes to investing in cryptocurrency, the most important rule is only to invest what you can afford to lose.
• On numerous specialized forums, novice crypto market participants often ask when the coin starts trading.
• In the next section, we will discuss common mistakes to avoid when timing your cryptocurrency trades.

Seasonal trends

However, technical analysis should be complemented with fundamental analysis factors. Evaluating technology, adoption, development teams, regulatory developments, and economic factors can help assess the intrinsic value and long-term potential of a cryptocurrency. In contrast, Fridays tend to be busier, with higher prices due to increased trading volume. Investors may make last-minute trades or adjustments to their portfolios before the weekend, contributing to price spikes. If you’re aiming to make a strategic purchase, targeting Monday mornings can provide a perfect chance to trade at lower prices.

• Cryptocurrency markets are highly sensitive to global developments, which can cause significant price fluctuations in a short period.
• Timing, therefore, becomes crucial—knowing when to buy and sell can significantly impact your earnings.
• Just like in the case of the best time of the day to buy cryptocurrency, you can know the best period to buy in a week.
• Companies like MicroStrategy remain steadfast in their commitment to Bitcoin.
• Crypto investors and traders also use certain strategies for successful trading.
• However, inexperienced traders may need help navigating the market’s unpredictability, which can quickly lead to losses.
• Everything needs to be approved by the blockchain technology before it enters the public Bitcoin transactions, so, once again, you know that there is no room for committing fraud.

Long-term trading

Generally speaking, the best time of day to buy crypto is in the late hours on the day that crypto performs the worst, or in the early hours on days when it performs well. 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. However, for many investors, it is still customary and convenient for many investors to trade during the day session rather than at night. That depends on your time zone and if your nighttime matches with the times when crypto assets are most liquid. According to a study by LongHash, the price of bitcoin (BTC) was typically the lowest at 6 AM UTC on Fridays from 2018 to 2020. However, price history should not be used solely to make predictions for the future.

When does the crypto market close?

So if you can avoid buying cryptocurrency outside of these peak international trading windows, you’ll avoid extra volatility in prices. So finding the right time of day will make buying cryptocurrency much easier. In this guide, you’ll learn everything you need to know about the best time of day to buy cryptocurrency.

Moreover, continuously reassessing and adjusting your goals and risk management strategies based on your experience and market dynamics is crucial for long-term success. Another approach is to analyze price trends using moving averages, which smooth how to sell short currencies in the forex market out short-term price fluctuations to identify longer-term trends. Crossing above key moving averages, such as the 50-day or 200-day moving average, may signal a bullish trend reversal and could indicate a favorable time to buy BTC. One common strategy is to look for support levels, which represent price levels where buying pressure may outweigh selling pressure, potentially leading to a price rebound.

Consider factors like personal schedules, investment goals, and risk tolerance when deciding the best time for you to purchase crypto. And remember to always do your research to make sure that you’re getting the best possible price from a reputable exchange or broker. There is no set rule when it comes to the best time of the day to buy bitcoin.

Learning about trading strategies, picking the right cryptocurrencies, and knowing when to buy and sell can help you meet your trading goals and maximize your outcomes. Once you spend time exploring and learning the ins and outs of the industry, you may be ready to How to Become a Project Manager build your crypto portfolio and find the right investments for you. Over time, you can expand your knowledge and skill set in crypto trading to enter a career in this industry.

Bull Vs Bear Market

Because of this, you need to be prepared for the risk of losing the money you invest (you should be prepared for this with any investment). If you invest with money you cannot afford to lose, you may put yourself in a dangerous position. Several cryptocurrencies are available on the market, each with risks and benefits. When you build your cryptocurrency portfolio, spreading your investment can prevent you from losing it all in one go if a singular asset takes a sharp plummet.

So, if Bitcoin is such an excellent asset, how come more people aren’t getting into it? One of the oldest banks in America, BNY Mellon, is now considering dealing in crypto, creating ease of use for the people. Companies like Mastercard are also looking to benefit from the opportunity by helping their users link select cryptocurrencies with their accounts. Certain services are excellent if you want to use your cryptocurrency like regular currency. Just like how you would use a credit card to buy things, you can get crypto-based debit cards, and receive cashbacks, rewards, and more. You even have the option to trade in Bitcoin if you have a commodity to sell, and you can accept payment in crypto.

Remembering the trading floor adage that ‘only monkeys pick bottoms’ can help traders get over the bump of wanting to place the perfect trade. This is a classic investment strategy that has been used since the beginning of time. When you see a dip in the market, it’s your opportunity to buy more crypto. Follow best practices like continuous education, using reliable exchanges, diversifying your portfolio, and practicing risk management. Combine technical and fundamental analysis, manage emotions, set realistic expectations, and embrace continuous learning and adaptation. In the next section, we will discuss common mistakes to avoid when timing your cryptocurrency trades.