One of the core features of cryptocurrencies is volatility in prices. The value of different crypto tokens is always in flux and some crypto investors profit from the variations while others record losses. This has raised the popular question among many crypto users: When is the right time to buy crypto?

Some individuals entering the crypto industry for the first time undertake courses like technical price and market analyses. Even experts take refresher courses from time to time to expand their knowledge.

This is all in a bid to profit while trading within fluctuating margins. And profits result when users know when to buy and sell crypto tokens. Buying or selling wrongly predisposes to losses up to total forfeiture of one’s assets.

So in this piece, we’re investigating the right time for a crypto user to buy crypto to maximize chances for profit. Let’s dive in!

It’s All Relative

The volatile nature of the crypto market makes it difficult to pinpoint an exact opportunity to profitably purchasing tokens. However, there are market conditions that make it better to buy crypto than others.

Moreover, users should remember that all investments are associated with some level of risk, with crypto investments bearing one of the highest levels. Crypto buyers must gauge their risk tolerance. The popular “invest only what you can afford to lose” applies here.

Market Sentiment

This refers to the outlook or attitude of the general crypto ecosystem towards a particular crypto token or the entire crypto market. It’s important to probe market sentiment to figure out when it is right to buy crypto.

This is because overall market sentiments determine price trends. Usually, an optimistic outlook on the market will increase demand for a particular crypto token and drive its price up (bullish trend). On the other hand, a generally pessimistic attitude to a crypto coin will cause investors to sell it more (dumping), which will result in a bearish trend.

Crypto users should monitor market sentiment carefully to avoid investing based on false hype and the dread of losing out.

Monitor Crypto Events

To determine when it’s right to buy crypto, investors must monitor events touching the crypto market. These include events like Bitcoin Halving, monitoring the activities of crypto whales on platforms like X and other significant news.

These events have a major impact on market trends by influencing demand and supply. Though unique, crypto is affected by basic market demand and supply like every other commodity.

When whales buy a coin more and hold, it causes scarcity of that token and drives its demand causing a price increase. The reverse is when they dump on exchanges causing a surplus of the coin and a price decrease.

Do Your Research

For the particular crypto token you want to buy, do your research. What kind of token is it? Is it backed by any crypto influencer or crypto project? Any market sentiment about it? With the gathered information, you can estimate its feasibility.

It is particularly important to make an informed decision about the right time to buy crypto.

Then, some investors buy new crypto tokens attached to the launch of new projects. It is imperative to investigate such projects on trusted sites and social media to gauge their authenticity.

Taking all these into consideration and the general principles below, a user can find the right window to buy crypto.

When is the Right Time to Buy Crypto? Some General Principles

Many authorities rule that it is generally better to buy and hold during a market slump (bearish trend). Buyers should however ensure that it’s a general trend and not isolated to the particular crypto they want to buy.

Then for particular periods, crypto activity increases during working days and increases the price. So buying on a Monday and holding to sell by Thursday or Friday might benefit a weekly trader.

Also, new token listings on major exchanges like Binance and Coinbase generally increase the price of a new token. Proper market vigilance and prior information can place a user at the right time to buy such tokens.

In Conclusion

Remember that volatility is the bane of the crypto market. The crypto industry is easily influenced by external events. So even expert traders suffer losses from time to time. Invest what you can afford to lose.

Proper planning and research are indispensable and with time, users gain invaluable experience. All these listed strategies are not absolute but would offer a guide on the right time to buy crypto.