You heard that there is a “Best Day To Buy Cryptocurrency”, and it got your attention, but you’re not sure whether that’s true. To learn more about the reasoning underlying these assertions, keep reading.
Bitcoin and other cryptocurrencies generally have a reputation for extreme price swings. There are benefits and drawbacks to it. Some have become rich, while others have gone bankrupt because of it. Possibly, you’re asking, “What’s the secret?” It is no longer a secret, however. Knowing when to invest in Bitcoin is the challenge.
Realistically, most individuals lack the expertise necessary to work with Bitcoin. Until the need is no longer there, many Bitcoin traders succeed without formal training. Economists have looked at the optimal timing to acquire Bitcoin and are sharing their findings and insights based on various criteria and assessments.
They first noticed that the causes influencing bitcoin price fluctuations are vastly different from those controlling more conventional asset classes. Bitcoin’s price may go up or down very quickly. Only after the price of Bitcoin has risen by 20% in the preceding week should you consider buying it.
Let’s begin by determining which is the Best Day To Buy Cryptocurrency/Bitcoin before moving on to the optimal time of day.
What Is The Best Day To buy Cryptocurrency?
The answer is that its constant availability is a critical difference between cryptocurrency and traditional stock markets. As long as you have access to the internet, you may purchase Bitcoin whenever you choose, wherever you are in the world, because the cryptocurrency market is open 24/7.
An investigation showed that Sundays and Mondays were the most favourable days to purchase Bitcoin because the cryptocurrency’s price was lowest then.
Since trading volumes on all cryptocurrency exchanges often decline over the weekend, Sunday nights are the ideal time to buy BTC. CME Group, a US derivatives powerhouse contributing considerably to bitcoin’s worldwide volume (over $500 million daily traded by institutional investors), takes the weekend off.
Speculative Reasoning Behind The Chosen Day
Several hypotheses may be considered if you want to know when to purchase Bitcoin. We’ll investigate three possibilities.
- In the first scenario, the price of Bitcoin would fall on Monday and rise on Friday since demand would be lower over the weekend.
- It has been hypothesized that the number of Bitcoin trades is highest on Mondays because users stock up on Bitcoin over the weekend in preparation for trading throughout the week.
- There’s also the school of thought that says you shouldn’t purchase Bitcoin around the time when 9-to-5ers are paid. The more the sums of money, the greater the desire for Bitcoin.
The Optimal Buying time For Cryptocurrency
To reiterate, exchanges like Binance are available around the clock for buying cryptocurrency. However, due to time zone differences, most dealers only make transactions during regular business hours. The optimal buying period for cryptocurrency is often a problem for day traders and scalpers. Why? Said, making a profit off of heightened volatility is the main objective here. And as trading volume increases, volatility often follows after.
Because of this, the optimal time to purchase cryptocurrency is when the most critical business hours worldwide coincide. It is between 11 pm, and 1 am GMT, the conclusion of the American business day and the beginning of Australian and Asian market hours.
Supply and demand and the Currency Exchange Rates and Capital Flows are two factors that affect the Best Day To Buy Cryptocurrency.
- Supply And Demand
The supply and demand for a cryptocurrency is the primary factor in determining its price. The objective of every prudent purchaser is, of course, to acquire items at prices below their eventual resale value. According to the principle of supply and demand, prices are at an all-time low when both demand and supply are low.
What does this mean for the optimal timing to purchase cryptocurrency?
When 1 pm and 3 pm GMT overlap, European day traders are liquidating their holdings, leading to a surplus of available goods and a subsequent drop in market prices. Demand is set to increase, which will cause prices to rise as the American business day is about to begin. However, technical and sentiment research should help judge whether you want to initiate a trade now.
- Currency Exchange Rates And Capital Flows
Capital movements into and out of the cryptocurrency market affect the market’s volatility. Institutional and corporate traders who transact during regular business hours in their respective time zones account for most of the money flowing through the market. It is because most of those looking for work do it at the beginning and end of the workday.
When Does Bitcoin’s Price Swing The Most?
As a result of our research, we’ve concluded that it’s difficult to determine the optimal time of day to purchase Bitcoin owing to its volatility.
However, being aware of Bitcoin’s most volatile time of day may be helpful. According to analyses of historical data and patterns in the crypto market, Bitcoin’s price volatility is highest at roughly 1 am UTC. Perhaps that’s because it’s already becoming dark outside at this hour in North America. In comparison, Asia has just started its workday. It is the day when Western and Asian traders are most likely to be active on the market simultaneously.
Thus, investing in cryptocurrencies at approximately 1 am UTC is preferable.
Conclusion The Best Day To Buy Cryptocurrency
Is there such a thing as the optimal time of day to invest in cryptocurrency? All the ideas, studies, and analyses on cryptocurrencies point to the fact that the market is far from ideal. Bitcoin and other cryptocurrencies are very unstable compared to more established financial assets.
Earning money quickly now can mean losing it all tomorrow. That wasn’t just a stroke of good fortune. Research as much as you can and only put up money you can afford to lose if you decide to invest in cryptocurrencies.