What is the best time to trade Bitcoin?
Bitcoin trading has many nuances to it, and one of these involves the knowledge of the right times to trade Bitcoin. This timing is of crucial importance to be able to earn profits. Along with this, having an idea about technical analysis may also be of use. With the advent of trade bots and mobile services people can start buying and selling crypto coins in a matter of minutes from anywhere in the world.
Crypto trading bots are software programs that are designed to execute trades on behalf of their users. These are reliable and can be of great help to newcomers who lack the technical knowhow and skills needed to conduct successful trades. Visit https://www.bitcointrader.site/ to learn about the automated bitcoin trading bots. So, when you wish to trade Bitcoins, you have to ask yourself the question, is the timing right?
Not many crypto traders have sound knowledge about how the crypto market works; they are typically self-taught and some rely on the knowhow that they get from experienced traders and the traditional financial markets. According to a research by two Yale University economists, crypto coins vary widely from traditional monetary assets as far as price swings are concerned. Unlike commodities and stocks, Bitcoin prices depend on momentum. This means that if the Bitcoin is doing well, it will continue to do so for a while. So, investors should ideally buy the coins when the value goes up by about 20% within a week.
Unlike stock markets the crypto market operates 24×7. So, you are free to buy or sell crypto coins at any point of time so long as you have Internet connectivity. There are however some parameters for consideration when buying the coins. According to analysis of average daily Bitcoin prices, Mondays and Sundays are the best for buying BTC; the reason being, prices are the lowest on these two days.
Theories for finding the right time for trading Bitcoins:
- According to one of these theories, the demands for BTC slow down in the weekend and the prices are pushed further down on Mondays. But prices are at their highest on Friday and Saturday.
- The second theory suggests that you buy BTC on weekends and execute your trades just when the week starts. Here, the volumes will be higher on Monday and you should notice a more cautious behavior as the week progresses.
- According to the third theory, experienced Bitcoin traders must not buy Bitcoins on days when workers get paid, like the end or middle of the month. This is because when people have enough money in their wallets, they will buy the coins. This will drive up the demand for Bitcoins, making the prices go up as a result.
To know which day is the best suited for Bitcoin buys, you have to study Bitcoin’s price movement using websites like CoinMarketCap. Analyzing historical data will help you find out whether Bitcoin prices will rise in the weekend. A method commonly used is the trend dependent price movement analysis. This will encourage you to buy at the week’s beginning when there is an uptrend or sell at the week’s end when there is a downturn as chances are the highest of getting the best prices. Using crypto alert tools can ensure you get notifications on price movements. That is going to help you identify the best timings to buy or sell Bitcoins.