When Is the Best Time to Buy Crypto?
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August, 21 2023
Over the last decade, cryptocurrency adoption has been massive as a means of exchange and technology advancement. The steady increase in the value of bitcoin estimated at about 100% – 200% per year, is making cryptocurrencies more and more mainstream.
The more crypto enthusiasts buy crypto or showcase the benefits they have gotten as a result of using bitcoin for transactions, the more the crypto community expands.
However, the question about when to buy bitcoin or any other cryptocurrency remains difficult to answer, following the constant volatility that characterise them.
This article will provide four key points that anyone can consider as they plan to buy crypto.
Four Tips To Decide When to Buy Crypto
1. Buy bitcoin when you are ready
It is never too early or to too late buy bitcoin or other cryptocurrencies but it is always important to be ready before you decide to buy crypto in the market. Readiness here refers to acknowledging that crypto ventures are risky, like any other business.
So, deciding to buy crypto regardless and the best way to go about it is a great step in your crypto journey.
The risk involved when you buy crypto has always been about its fluctuating prices. The price of bitcoin could rise exponentially today, attracting many investors and also enabling those who are holding on to bitcoin to make a huge profit. However, in another forty-eight hours, the prices could drop drastically, thereby causing lots of investors to lose money.
It is, therefore, safe to say that the risk you take in buying Bitcoin should be proportionate to the amount of money you are willing to lose or gain. It is often said that “the higher the risk, the higher the profit”, and the reverse could as well be true.
2. Select a trading strategy
Crypto trading strategies simply refer to how each trader decides to buy and sell bitcoin because there are no specific rules for this practice. They include what influences your crypto trading decisions.
The most popular crypto trading slogan used in trading strategy is “buying low and selling high”. As we earlier mentioned, cryptocurrencies are very volatile and smart traders seize this opportunity to make money. This entails being very observant of the prices on the market.
It is worth mentioning that this strategy involves two techniques.
The first technique is about trading several times a day looking to catch profits in the market. That is to repeatedly buy and resell when there is a small increase in the price, this is also called Day Trading.
The second technique is mostly about buying and stocking when prices are low with the hope of reselling at very high prices. It is a long-term strategy and is often called Crypto Investing. For example, you may purchase bitcoin at $500 with the hope to resell the same amount at $2000. Inasmuch as this is possible, it is obvious that it is risky.
Read More: Is it too late to buy bitcoin?
3. Acquire knowledge of cryptocurrency
The biggest problem faced by crypto traders is the lack of information. Actually, it is not like there is a deficit in information. It is simply because most traders do not invest in educating themselves about the domain. They mostly rely on social media information or knowledge from their mentors.
Interestingly, the internet has lots of articles on cryptocurrencies and how they operate. For instance, Yellow Card runs a Crypto Academy - a platform with very simplified articles on cryptocurrency, blockchain technology, and financial literacy for beginners, intermediate and advanced traders.
To successfully invest in cryptocurrency as you would in another domain, educating yourself therein is the first and most important step to make.
4. Choose a Cryptocurrency Exchange Platform
While buying cryptocurrency can be done through an Exchange and Peer-to-Peer trading, it is advisable to rather trade with a legal exchange platform that guarantees the safety of your money.
Yellow Card is one of those legit and reliable Pan-African crypto exchange platforms you can trust and trade with.
Now present in 16 African countries, it permits you to buy and sell Bitcoin, Ethereum, and USDT at the best rates.
The problems faced in receiving money from friends and family abroad are solved by Yellow Card, as there are no limits to the amount of money you can receive in your account.
Cryptocurrencies are gaining more and more recognition and reliability as time goes by. They are making trade better and financial inclusion possible for unbanked communities in Africa.
If you have an interest in buying bitcoin or cryptocurrency for trading purposes, a winning strategy is key. Adopting a trading strategy and continuously learning about the new trends in the crypto ecosystem are healthy approaches to consider before getting started with crypto trading.
Also, consider buying and selling crypto with a legit platform like Yellow Card where you can be sure of your fund’s safety.