Someone told you there is one specific time of day when you should buy bitcoin and it triggered your interest but you are not sure if that is even a thing? Read on, we will explain what is the theory behind such claims.
Bitcoin and any cryptocurrency, in general, are known to be very volatile. That has its pros and cons. It has seen some people become millionaires while others burn down to the ground. You may be wondering: What’s the secret? Well, it’s not a secret anymore. The trick is to know the right time to buy Bitcoin.
Let’s face it; most of the people do not have all the knowledge required to deal with Bitcoin. Many of the Bitcoin traders are self-taught, and this eventually works as long as the need is met. Several economists have researched what the best time to buy Bitcoin is providing their observations based on several factors and analyses.
First, they took note that the factors determining price swings in cryptocurrency are very different from those that affect traditional assets. Bitcoin prices rise rapidly and fall just as fast. It is therefore advisable to only invest in Bitcoin when its value increases by 20% in the previous week.
Before we tackle the best time of the day, let’s begin by first of all deciphering what day is best if one is planning on buying Bitcoin.
The best day to buy Bitcoin
It is crucial to take into account that unlike traditional stock markets, the cryptocurrency market is open 24/7. You can buy Bitcoin at any time of the day from anywhere as long as you have an internet connection.
According to an analysis carried out, the best days to buy Bitcoin are Sundays and Mondays, for the sole reason that on these days the price of the Bitcoin is at its lowest.
Theories behind the specific days
Multiple theories are explaining how to determine the best timing to buy Bitcoin. We are going to look into three
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- The first theory suggests that the demand for Bitcoin slows down during the weekends pushing its price to be lower on Monday and higher on Fridays
- A second theory suggests that most people tend to buy Bitcoin during the weekends and begin trading during the week meaning that the volume is high on Mondays
- A third theory suggests that it is best to avoid buying Bitcoin during periods when 9-5 workers get paid. The more the money, the more the demand for Bitcoin
Best time of day to buy Bitcoin
We have narrowed down to the best days to buy Bitcoin and even further looked into several theories that can help you better ascertain your decision. Now let’s take a deep dive and take a look at the best time of the day to buy Bitcoin.
Take note of the fact that the BTC is highly volatile and its price changes within a short period. Searching for the best time to buy Bitcoin, however, depicts a focus on the short-term focus on the price of the Bitcoin which is not advised.
The best thing you can do is to adopt the following practices that are sure to keep the risk of losing all your money at bay.
✅ Educate yourself
Do not begin trading in cryptocurrency if you do not know anything about it. The cryptocurrency is not a platform to chase quick profits. There are numerous risks involved with it.
Get on the internet and research. You can get material from the Nakamoto institute and even get a lot of information on Youtube. It may be time-consuming, but that is the right way to go about it
✅ Don’t panic sell
I know what you’re thinking. What if the Bitcoin market price is high? Isn’t it advisable to sell and gain profit? Yes, it is good to do so if you planned to sell when BTC reaches a certain price height. However, if you got into panic mode by reading or listening to stuff online and think you need to sell before it all crashes – then, NO – don’t do that.
Take note of the fact that holding Bitcoin long-term is the best strategy. Bitcoin is in the process of slowly monetizing. Wouldn’t it be useless to sell and accumulate fiat money which would eventually prove to be worthless?
✅ Buy on the dip
Cryptocurrency being highly volatile, it comes without question that at some point, the market price of the Bitcoin will fall. The best time to invest in Bitcoin is at this time. If you are new to cryptocurrency, this may sound counterintuitive to you. However, take note of the fact that the Bitcoin is very volatile. Prices could go down right now and appreciate within the next hour.
✅ Understand current markets and trends
It is advised to make sure that you know how to study market trends and decide the best time to invest in cryptocurrency. You should be able to make decisions based on market trends and not based on what every trader is doing.
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How to keep track of Bitcoin prices
Having concluded that there is not exactly the best time to buy cryptocurrency due to its volatility, let us look into a concept that will prove to be even more useful.
Keeping track of Bitcoin prices will notify you when its price has gone down for you to buy it is essential. You can keep track of Bitcoin prices using several apps including Binance, TradingView, Plus500, Coinbase, Delta App and Blockfolio, to name a few.
You can set alerts on whichever application you get so you will be notified when the Bitcoin either goes up or down.
At what time of the day is the Bitcoin most volatile?
We have concluded that due to volatility, it gets challenging to decide on the best time of the day to buy Bitcoin.
However, knowing the hour of the day when the Bitcoin is most volatile can prove to be very vital. Research and analysis of the market trends have shown that the Bitcoin is most volatile at around 1 am UTC. That could be because this hour is the beginning of the evening for North America. In contrast, it is the beginning of the workday in Asia. At this time of the day, the Western traders and Asian traders are most likely to be actively trading simultaneously.
Is there a thing as the best time to buy cryptocurrency? From all the theories, research and analysis, it is clear that there is no such thing as a perfect market when it comes to cryptocurrency. Unlike other traditional assets, cryptocurrency is very volatile. You could make some quick only today and lose it all tomorrow. That is not a matter of sheer luck. It is about doing as much research as possible and making sure you’re investing what you can afford to lose.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com