This is the best moment and the best time to buy cryptocurrency for novice traders.
When is the Best Time to Buy Cryptocurrencies
Express Coin - Determining the best time to buy cryptocurrency is a bit difficult. Moreover, it is still a beginner who is new to the decentralized currency. However, this does not dampen the fans of crypto coins, because those who are interested in this currency are also increasing.
This is proven by the increasing number of new crypto coins appearing. And the new crypto coins all have communities and fans. Another fact also proves that there are many cryptocurrency trading platform sites that exist. And all these sites also have a large number of members.
From the example above, it proves that cryptocurrency enthusiasts have never subsided. it can be ascertained that every day there are new people who buy crypto coins.
Next, when is the best time to buy Bitcoin or another cryptocurrencies?
The best time to buy cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Tron (TRX), Bittorrent (BTT), and others is still a big mystery for new traders or investors.
According to a study conducted by investment experts, that the best time to buy crypto coins never appears in official documentation. This is because the crypto asset sector has very volatile price dynamics.
The up and down movement of crypto coin prices is very fast. so, can not predict when the right time to buy. Cryptocurrency is a double-edged investment asset that can generate tens of thousands of dollars in just a few months, or be prepared to lose it all. However, with the right tactics and mindset, you will most likely soon find yourself in an advantage.
On the other hand, you can easily join the crypto asset world. Thanks to a variety of new and innovative applications, as well as cryptocurrency trading platform sites.
Now you can find out firsthand information about the price value of Bitcoin, Ethereum and other cryptocurrencies that can be accessed from anywhere in the world.
Since not many people in the crypto asset world are financially knowledgeable, many rely on traditional financial trends or popular crypto analysis.
Next, this article will discuss the best time to buy cryptocurrencies with some possible theories that can help:
(1). Buying on the Weekend
Than some people may make purchases on the weekends. some research findings reveal that many people decide to buy crypto coins over the weekend and make transactions early in the week. This is because, the volume increases on the first day of the week in that, but one should be more careful in his behavior in the rest of the week.
(2). Buy When Crypto Coin Prices Drop
Ndtv mentions how to invest in crypto assets such as Bitcoin, the best way is to buy the dip. Or buy when the price tends to be down or low again. Then hold it for some time and sell the crypto asset at the highest price in order to make a profit.
Usually the demand for crypto coins during the weekend slows down. So the price trend will go down on Monday. You can buy during this period because the price of crypto coins will rebound again on Friday and Saturday.
Or if you hesitate to buy at the lowest price, you can wait for the price movement to bounce when it reaches the support line. Support is the lowest level on the price chart of crypto coins, especially Bitcoin. Usually traders will be interested in buying because the price is considered cheap.
Downward price trends usually cause concern, even panic, for traders. However, this condition can also provide a great buying opportunity. Traders can make a profit at a later date, when the crypto market returns to health and prices increase.
(3). Buy Few Crypto Coins Regularly.
Launching from Forbes, the way to invest in cryptocurrencies like Bitcoin is basically the same as investing in stocks. Whenever it is a good time to buy Bitcoin. It doesn't matter what the price is and what the market conditions are.
This can be applied by beginners as well as those of you who see Bitcoin or other digital coins as a long-term investment instrument. The reason is that some crypto analysts predict that the price of cryptocurrencies will continue to increase.
Of course, by adhering to this principle you can apply the method of investing in crypto assets by buying them little by little on a regular basis without considering the price at the time of purchase. That way you won't be worried when the price of crypto coins today suddenly decreases or experiences sideways.
(4). Studying Historical Patterns in the Crypto Market
We cannot accurately predict future market conditions. but by knowing the history of the crypto market, traders can find out the pattern of ups and downs in the price of crypto coins that move based on that pattern.
According to Yale University economists, Yukun Liu and Aleh Tsyvinski, crypto asset returns can be predicted by various factors. Return on crypto assets has low exposure to traditional assets such as stocks, currencies, and commodities.
In other words, the behavior of crypto assets is different from that of traditional asset classes.the behavior of the crypto asset market is more influenced by the prospects for the function of the crypto asset itself along with the future of blockchain technology; as the effect of the value of ownership of precious metals on the price of the commodity.
Liu and Tsyvinski's findings also show how high returns from crypto assets are also accompanied by high risk taking. However, the ratio between return and risk can be said to be at a normal level.
Crypto asset returns can be predicted through 2 (two) factors: market momentum and investors.
1. Market Momentum
Momentum basically means that when the value of an asset increases, it tends to go up even higher.
To take advantage of the momentum effect, Liu and Tsyvinski have devised a simple strategy, whereby an investor should buy Bitcoin (or another crypto asset) if its value has increased by more than 20% in the previous week. This strategy yielded tremendous returns in the study.
2. Investor Momentum
The factor of investors' attention to crypto assets. Liu and Tsyvinski started with a question:
If the number of searches for 'cryptocurrency' on Google or Twitter is very high, will the return increase? It was true, the return will increase.
They also found that a decrease in investors' attention to crypto assets such as a decrease in the number of searches for 'Bitcoin hack' will have a negative impact on returns.