One of the best place to invest your money is in cryptocurrency.It’s a way to financial breakthrough as a trader or a long-term investor. In 24hrs, cryptocurrency can make you a millionaire with your thousands but prepare for the worst part of it because there’s nothing that comes with an advantage that doesn’t have disadvantage.
However, the Crypto market have some amazing features that you should be aware of before investing in it. We will discuss it here in the following article.
This doesn’t mean that we can’t give you a fool path to success but you should know that knowledge is power; each piece of information you receive makes you a more well rounded investor.
Cryptocurrencies are volatile,like Bitcoin can experience daily (or even hourly) Price volatility. This volatility cause fear of missing out, uncertainty, or fear of not participating at all. However,do you know when to buy?, When prices are fluctuating. In a layman idea, it’s simple to know when to buy a coin or to invest in a cryptocurrency : buy when the price is low, sell when the price is high. But in reality,this is not easy as it is easier said than done even for crypto expert. Instead of buying when it is low and selling when it is high,you can use what most of the investors uses, a strategy called “DOLLAR-COST AVERAGING (or ” DCA”) which helps to reduce the impact of market volatility by investiua smaller amount into an asset such as cryy, stock or gold on a regular schedule.
With interest in the most existing asset class,many investor are curious as to what period might be best for them to make purchases in cryptocurrency market. After all, cryptocurrency market is rarely stable right or wrong time to buy in that could apply to anyone.
So , let jump straight into when is the best period to invest in cryptocurrency.
. When no one talks about it
When some crypto coin start to make their move or moving like a rocket if to say, it may be due to some hyping that the Crypto coin got from people and whenever it drops,the dip will much which leads to lot of lost as a Crypto trader. The ultimate period to buy a coin is when no one is talking about it, according to early adopter.
One investor who prefer to remain anonymous once told an insider in a phone interview from Manila, philippines that “the best period to buy a coin is whenever blood is on the street, everyone panicking and no one is talking about it.
. Buying an asset that have potential
Before cryptocurrency really became a thing, the only market that came even close to the round the clock nature of crypto trading was the global forex market. Fx market is a genuinely global market which observe office hours, as one part of the world is closing at the end of the working day, another part of the world is opening for business. However,even though Fx boasts around the trading clock, it will still close over the weekend.
Crypto coin doesn’t observe any working days, they trade 24hrs per day, 7days per week, all year round. Crypto market does not see any holiday,trader of Crypto coin trade every night, everyday of the week, on Christmas day, Ramadan period, Easter period and even on New Year eve.
Now that you have know that Crypto coin doesn’t have a market free day, the best period is to invest in coin that have good potentials. What do I mean by coin having good potentials? I mean coin that have good project in them. There are thousands or even close to millions of Crypto coin in the market ,coin like BTC,ETH, altcoins and shit coins. Invest in new coins that have good potentials like altcoins ( Polkadot,cardano,BnB,Vetchain,wave,litecoin,Ziliqa etc) and not coin with no potentials such as shit coins. You can invest in this coins for a long period for it will increases over a long period of time unlike shit coins which will do 1000% move and still do 1000% drops .
. When selling rate is higher than buying rate
Another period of buying a Crypto coin is when selling rate is higher than buying rate. Crypto market fluctuate alot as people buy, people also sell. Often, beginners in Crypto market always fall into trap alot,trap of “Emotional trading or Fear of missing out”, where buying and selling decision are decided by their psychological factors like fear or excitement.
To really know when to invest in cryptocurrency, you’ll have to be in a community of traders or investors. Since experience is the best tutor,those with experience will have your back only when you follow rules. If they’re right, you’ll benefit from buying assets at lower price. But even if they’re wrong, you’ll invest into market as the price increase.
. Hedging through volatility
Dollar-cost averaging (DCA) exposes investors or traders to price across time. When market begin to fluctuate price,the goal of this strategy is to average out any increase or decrease in the price and benefits a little bit from price movement in every direction.