Cryptocurrency is a volatile asset class that experiences a lot of ups and downs. People often get the idea that they should try to time their investments by purchasing within specific windows to get the best possible price. However, because cryptocurrency is traded 24 hours a day by investors around the world, timing a cryptocurrency buy is never cut-and-dried.
If you want to invest in crypto, your best bet is to practice dollar-cost averaging, or buying a little bit at a time over an extended period. Even if you invest at intervals that turn out to be not all that low, you will catch others that are very low, and things may average out.
There are ebbs and flows to the crypto market that vary wildly depending on the specific cryptocurrency you're buying. Tokens may trade with yet another pattern. For someone intent on timing a crypto purchase, it pays to analyze the history of specific investment types.
When is the best time to buy cryptocurrency?
To make it short and sweet, the best time to buy a cryptocurrency is when you're ready to buy a cryptocurrency. Using the dollar-cost averaging approach, you'll be able to control the volatility of your investment (at least to some degree) and avoid the roller coaster ride.
Never put more into a crypto than you're willing to lose. They are not guaranteed winners or asset classes that provide any sort of security. Some people have made significant amounts of money on the right buy at the right time, but it's often more about luck than astutely timing the market.
Best time of the week to buy cryptocurrency
Based on the same data used to determine the best time of day to buy crypto, the best day of the week to buy crypto seems to be Monday, followed by Thursday, with Tuesday, Wednesday, and Friday tied for third place.
In the last 90 days, Monday had twice the buying opportunities of the next best day, Thursday, but there were also significant drops in crypto prices on Tuesday, Wednesday, and Friday. The worst day -- hands down -- was Sunday.
Best time of the month to buy cryptocurrency
With crypto, everything is constantly changing, which is a problem if you're trying to time purchases. For the moment, however, the best time of the month to buy is typically near the end of month. Values tend to fall throughout the month, with price collapses more common in the last 10 days of the month, when data is grouped into 10-day windows. However, the individual day of the month with the most drops in value was the 10th.
Again, this may vary with some cryptos or smaller altcoins. Based on the coins with the highest capitalization rates, however, the trend seems to be fairly consistent.
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What is the best move with crypto?
Timing a cryptocurrency buy can be difficult, if not treacherous, since there are so many elements that go into the price of a coin. Although there are fewer personality-based drivers (such as sex scandals involving CEOs of major companies, for example), there are more lemming-like sell-offs. People have only so much tolerance for risk, and the fear of missing out on selling a crypto holding for a short-term profit is a tempting siren song.
With crypto, as with any kind of investment, your best bet will always be to hold on for the longer term and buy a little bit at a time. Your highest returns will come from this strategy, even though it's not particularly sexy and doesn't provide any of that Vegas-like thrill for investors hoping for a quick winner.
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