Now Reading
When is the Best Time to Buy and Sell Cryptocurrencies?

When is the Best Time to Buy and Sell Cryptocurrencies?

Ever wondered when is the best time to buy and sell cryptocurrencies? First of all, when you’re buying cryptocurrency then you want prices to be low and vice versa. As cliché as it may sound; buy low, sell high.

What Causes Price to Increase?

Despite the volatility, one reason for a huge increase in a cryptocurrencies’ price is its tokens supply – when the supply is reduced but higher in demand, it will lead to the increase of its value.

Other factors include:

  • New developments and announcements, if a cryptocurrency has a large community, a simple announcement or new feature can cause a huge wave of buying behaviour which increases the coins’ price;
  • Cryptocurrency developers hitting roadmap deadlines and targets, this can cause investors to buy cryptocurrency more due to increased confidence;
  • Cryptocurrencies on small exchanges getting added onto larger and more popular exchanges (increases user adoption);
  • Pump and dump groups, usually with really small and shady cryptocurrencies which are easier to manipulate;
  • Hype, people with a large following and influence can urge people to invest in a cryptocurrency;
  • Real-world use and adoption of a cryptocurrency, low supply and demand increase.

When is the exact best time to buy and sell cryptocurrencies? Like many financial decisions, it depends on a lot of factors: which cryptocurrency you’re buying, the reason you’re buying it, your financial situation, and the current state of the overall cryptocurrency market — just to name a few.

There are a few tips in buying and selling cryptocurrencies.

Get Your Foot in the Door Now

No one can predict what the price of a cryptocurrency will be in the future. It’s up to you, if you feel confident with the crypto you’ve chosen, buy a small amount to get you started and set your foundations. So long as you’ve picked a stable coin, it is better to get in hands now and hold for the long term. If you try to time the market, you risk the chances of buying the coin at a higher price later.

“Be Fearful When Others Are Greedy and Be Greedy When Others Are Fearful”

Warren Buffett once said that as an investor, it is wise to be “fearful when others are greedy and greedy when others are fearful”. This means people are advised to buy when others are selling as the price will go down and be cautious when everyone is buying as it will cause the price to rise.

See Also
Mark Jeffrey interview-Techcryption

Usually, a price drop is followed by a rebound that causes a price increase, so investors can use the downturn to buy a cryptocurrency at a lower price. Another piece of advice is to be patient when you buy a coin when the price is high and it starts to decline, just wait for the price to recover. Another opportunity to buy is when the coin is in accumulation.

Buy Low, Sell High

Keep in mind, the price is what you pay, and value is what you get. You’re advised to buy cryptocurrencies when the market is in a bearish trend and sell it when the market is bullish. Kindly check our Price Analysis before you make a decision.

HODL-ing

Hodling, or the exact term is holding. This is the practice of holding onto a long-term investment without giving in to the urge to sell. If you’re new in this space, you’re highly recommended to hold (keep) your coin, instead of selling it.

What's Your Reaction?
Angry
0
Confused
0
Excited
0
Happy
0
Okay
0
Sad
0

© 2020 Techcryption Media Sdn Bhd . All Rights Reserved

Scroll To Top