The few existing barriers and the allure of earning a huge amount from a small investment have made the popularity of the crypto market surreal. The ongoing hype through social media platforms evenly contributed to the people’s interest in crypto investments.
Bitcoin, the most popular and first decentralized cryptocurrency, is one of the most traded cryptocoins in the world. Many people planning to invest in a crypto platform raise concerns regarding the best time to buy Bitcoin in a day. Since Bitcoin is traded 24 hours a day, is there a best time to buy it? Continue reading the article to find out.
Things to Take Care of Before Buying a Bitcoin
- Buy Bitcoins from regulated exchanges, since they follow financial regulations, offer custom support, and strengthen security measures.
- Set strong passwords and two-factor authentication for all Bitcoin-related accounts.
- Cryptocurrency platforms are highly volatile, the price can move up or down by 5 to 10% in a single day, don’t get offended and take strategies to counter the situation.
- A Bitcoin transaction is irreversible until the person receiving the funds is ready to refund them.
- Bitcoin transactions are stored publicly on the blockchain ledger, making the transaction details of any Bitcoin address visible to all the participants.
When is the Best Time to Buy a Bitcoin?
Bitcoins are traded 24 hours a day, and every day, no public holiday or undeclared holiday affects the trade of Bitcoins. Frankly speaking, the best time to buy a Bitcoin or any other cryptocurrency is when the buyer is ready to buy it, considering the fluctuations.
The fluctuations can even be controlled by implementing a dollar cost average approach to a limited extent, but investing more than one can afford a loss takes circumstances out of control. All together, buy a cryptocurrency when you are ready to counterpart the associated risks.
What is the Best Time to Buy a Bitcoin in a Day?
Being highly volatile, bitcoin trades can experience major ups and downs. To tackle the volatile nature and reduce their impact investors around the world prefer some best times to buy Bitcoin.
The best time of the day to trade a cryptocurrency is when liquidity is high. Liquidity becomes higher during the exchange hours. Crypto trading rises its peaks during exchange opening and closing times.
Bitcoin prices become low when the market is less busy. According to experts, buying a Bitcoin before the New York Stock Exchange opens, precisely early in the morning is the most appropriate time since the value rises as the day continues.
Timing the Cryptocurrency Market
- The best time to buy a Bitcoin in a day is early in the morning.
- The best day to buy a Bitcoin in a week is Sunday.
- The best time in a month to buy a Bitcoin is towards the end of the month.
- Monitor the stock market trading hours for the best time to buy the Bitcoin since the fluctuations are high during the exchange hours.
- Analyze the crypto market trends and forecast the cash flow to reduce the volatility risks associated.
Factors Affecting the Price of Bitcoins
The volatility in the price of Bitcoins is affected by many factors including market demand, regulatory changes, and supply rates. The decentralized nature of Bitcoin eliminates the influence of government monetary policies in determining value.
1. Supply
A scarce asset will have higher prices, whereas an abundant asset can be bought at a lower price. The supply of Bitcoin is limited, with 21 million produced yet and only a specific number produced each year making it well publicized. The limited production adds to an increase in demand and the price hike.
2. Demand
Bitcoin was the first cryptocurrency introduced, and still the most popular, making it one of the most demanded cryptocurrencies by investors across the world. The increase in demand results in high prices. High inflation and declining currency rates in many countries have added to the increasing demand.
3. Emergence of Newer Cryptocurrencies
Although Bitcoins dominate the crypto market, the rise of newer cryptocurrencies waned their popularity over time. Increased awareness and capability of alternative coins have resulted in the decline of shares to less than 57% in October 2024.
4. Regulatory Developments in Bitcoin Price
Though Bitcoins are decentralized, their price is responsive to regulations. Cryptocurrency rules delivered by the Security and Exchange Commission of the United States affected the Bitcoin price. The approval of the first US Bitcoin-linked ETF by the SEC resulted in the price surge to $69,000 and later declined to $40,000 after a few months.
5. Media
Media reports all the updates regarding Bitcoin, some in favor and some against. A favorable report increases the demand and hence the price whereas a decline reduces the price.
Bottom Line
Buying a cryptocurrency is associated with volatility risks, one has to be ready to face the associated risks prior to buying them. Though there is no absolute best time to buy a Bitcoin, an early morning buy reduces the price, ie when the exchange market is down. Sundays and month-ends are likely to offer less price and volatility compared to other days.