When Is The Best Time To Buy Cryptocurrency

Best time to buy cryptocurrency

Estimated reading time: 4 minutes

When investing in cryptocurrency, the key is knowing when to buy and sell your digital assets for maximum profit. Last year all cryptocurrencies saw a significant increase in prices, with most of them hitting their all-time high.

However, since the beginning of this year, the prices have been crashing. Bitcoin attained its all-time high price in Mid-April last year and is now over 50% below that price, while Ethereum is approximately 55% below its all-time high attained in Mid-May.

Falling prices are a cause for alarm for investors who have already bought cryptocurrencies but can be a good thing if you plan to buy. This mainly applies to high-value cryptocurrencies like Bitcoin and Ethereum, whose value is likely to shoot back up.

While it’s attractive to buy cryptocurrencies during crashing prices, there are a few things you need to know to ensure that it is the right decision.

SEE ALSO: Top 10 Tips for Starting Trading with Bitcoin

The Best Time To Buy

It makes sense to buy cryptocurrencies and other digital assets when prices are low, wait for them to increase, and then sell them. However, there is more that goes into the decision. Timing the market is challenging, especially with cryptocurrency, because of its high volatility.

You might buy cryptocurrencies now, thinking that this is the lowest they can go, only for the prices to keep dipping. On the other hand, you could wait for the prices to go down further, but then they skyrocket, and you will have missed your opportunity.

Unlike stocks with a proven track record and are easier to predict, you cannot predict a trend for cryptocurrencies, as proven by the rollercoaster of their prices in the past few years.

Strong cryptocurrencies have been seen to recover from the lowest prices in the past, but there is no telling whether they will recover from this and continue thriving as they did in the past year. Therefore, buying during these crashing moments could mean you lose a lot more than you had intended.

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When You Should Buy

If you want to start investing in cryptocurrency, there is no definite answer to when is the best time to buy, so long as you have an effective strategy.

The key to making profits in the stock market is buying strong investments like Bitcoin and Ethereum, then holding them for the long-term instead of trading short term. That is because experts have predicted that such cryptocurrencies can hit other all-time high prices in the coming years.

You may also choose to run your own Ethereum validator, which can offer a clear monetary return on investment. You can learn more here about how to start your own Ethereum validator.

There is no promise in the success of any Bitcoin, so when you buy, you should believe strongly in its potential to grow and be willing to hold on to the investment for years or even decades.

If you are only investing in it because you have seen it as an option to get quick money in the short term, it might be dangerous because you might pull out of the investment too early or lose more than you expected.

You can also avoid crypto volatility by taking advantage of dollar-cost averaging, which allows you to invest a certain amount on set schedules, for example, $1,500 every quarter.

With this method, you will sometimes buy a cryptocurrency when prices are high and other times when prices are low, which averages out over time and minimizes your losses. Whatever approach you choose, ensure that you are in the investment for the long term.

There are online platforms like https://www.okx.com/markets/prices, where you can keep track of the daily price changes of different cryptocurrencies.