People often get the idea that they should be trying to time their investments, 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 (DCA). What is DCA? DCA is a long-term strategy, where an investor regularly buys smaller amounts of an asset over a period of time, no matter the price (for example, investing $100 in Bitcoin every month for a year, instead of $1,200 at once). Their DCA schedule may change over time and depending on their goals it can last just a few months or many years.
But to make it short, when is the best time to buy cryptocurrency?
The answer is when you’re ready to buy a cryptocurrency. Using the DCA approach, you’ll be able to control the volatility of your own cost. However, if you analyze a few months data, a very general patterns emerge. Comparing the trading activity of cryptos with some of the highest cap rates like BTC and ETH, they tend to rise and fall together. Looking at the data from 2021 last year, the very best time of day to purchase these popular cyptos generally was in the morning, and the earlier, the better. And the best time of the month to buy is near the end. Values tend to rise in the first 10 days of the month, followed by a price collapse (probably because people are selling after increases) in the second half of the month.
Again, this may be vary with other cryptos or smaller altcoins. With crypto, like with any kind of investment, your best bet will always be to hold on for the long term, and buy a little bit at a time.
