The Cryptocurrency Market Is In Distress, The Time To Buy Is Now

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Bearish Crypto Market: Is This The Best Time To Buy?

Bitcoin is falling, Altcoins are not left behind. As Bitcoin drops to $4,400 , majority of Altcoins have lost their momentum, with more than twenty Altcoins falling by 10%. On a basic bear market, Altcoins may lose a maximum of 5 to 7%, but if traders needed more proof that a bloodbath has surfaced, it is more evident in the dwindling percentage of Altcoins.

Some tokens have even lost more than 30%. The recently forked Bitcoin Cash, for example, has declined by 43.70%. Right behind it is the Ethereum, whose growth promised so much, but as traders struggle to wield any glimmer of hope, the token is downwardly trading at -14.28%. All of this event begs a significant underlying question, should traders continue to buy Bitcoin, Ethereum, or any other token at all?

To assume that the cryptocurrency market has fully bottomed because of the ongoing bearish crisis may be largely termed as a novice-investment-decision, but for long-term traders like CryptoMusic, times like this are the best times to buy Bitcoin. The trader has revealed that if Bitcoin falls further to $3,000, he’ll make his first Bitcoin purchase. In fact, this trader sold all his funds in hopes that Bitcoin will lose another $1,000 in order to rebuy.

He can be quoted saying “Sold all funds. Plan to rebuy once $BTC drops below $3K”. Risky money moves? not for CryptoMusic whose game plan is to think long-term; take a small loss with a high Bitcoin average, so as to rebuy at a cheaper price than last year’s bear season to pump his next Bitcoin average. A long-term goal indeed, but to Vutron who would rather undergo current losses whilst awaiting a price increase, selling during this period is a loss in itself.

Apparently, most traders would rather not purchase any more Bitcoins for the fear of greater loss. But on the flip side, the others are more keen on buying Altcoins, especially with the Ripple wave. A few are also eyeing Tron, affirming that 2020 is Tron’s year.

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DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Opinion: Buy these stocks and sectors now because coronavirus won’t lead to recession

Michael Brush

‘The market is daring you to buy value today’

Workers in China sew hazardous material suits,

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Investing lore has it that bond investors are the “smart money” since they know their way around financial statements.

I’m not sure this is true. But if it is, bond guru Mark Vaselkiv may qualify as one of the smarter investors around. He’s the chief investment officer for fixed income at T. Rowe Price, which manages an impressive $148 billion in bond fund assets.

Vaselkiv, 62, has been in the business for nearly 35 years (31 at T. Rowe Price). So he’s battle-tested by several crises — a few of which were so bad they make coronavirus look like child’s play. He also has a decent record. His $8 billion T. Rowe Price High Yield Fund PRHYX, +0.88% , which he managed from 1996 to 2020, was a top 10% fund in its Lipper category during his tenure, returning an annualized 7.16%. That’s less than the 9% for the S&P 500 index SPX, +1.51% over the same time. But Vaselkiv did it with half the volatility.

During these trouble times in the markets, it makes sense to check in with this seasoned “bond whisperer” to see what the smart money in fixed income is telling us about coronavirus, the risk of recession and other issues that will impact your portfolio.

Here are five key takeaways from a recent chat with him.

1. Coronavirus will not kill off the expansion

“We ultimately think it could get worse, and maybe we are still in the early innings of what could prove to be a pandemic,” says Vaselkiv. But he puts the probabilities of the worst-case scenario — a global recession — at just 15%.

To support his case, Vaselkiv says that spreads on high-yield bonds — a good place to look for signs of trouble — have not blown out relative to higher quality corporate paper and Treasurys. Widening high-yield spreads were an early predictor of the market crash during the 2008 financial crisis.

“High yield has held in extremely well, except energy,” he says. “This tells us the market is optimistic we are going to get through this, and it won’t end up tipping economy into recession. Economies are resilient. We have been through a lot worse than the coronavirus.”

Vaselkiv is in the camp that holds the rebound in economies once virus fears die down will offset the near-term damage. So full-year GDP growth will be about the same as what was projected before the coronavirus outbreak. That was the pattern with past virus scares, as economies responded to government stimulus rolled out to offset the damage.

But wait a second. Aren’t the record-low yields on U.S. government bonds signaling economic trouble ahead? Vaselkiv doesn’t think so. He believes these yields are low because money managers have flocked to U.S. debt to hedge their stock-market gains against declines. “People are buying insurance,” he says.

That now looks like a crowded trade, fraught with some risk. “If the virus situation dies down, the Treasury market will give a lot of that back,” he cautions.

2. The energy sector is a mess but that’s creating opportunity

About a quarter of high-yield bonds in energy are trading at distressed levels. This means their yields are more than 10 percentage points over the yields on “risk free” five-year Treasury bonds TMUBMUSD05Y, 0.419% . Junk bonds in energy now yield a little over 11% on average, vs. around 1.2% for five-year Treasurys.

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Spreads this wide typically signal above-average default rates ahead. “This feels like round two,” he said, referring to the wave of bankruptcies in the energy space during 2105-16. “The energy sector has unraveled. People don’t want to own high-yield energy bonds.”

Negativity on energy, though, means that investment-grade blue chip multinational companies in the space are “dirt cheap,” he says. Shares of Exxon Mobil XOM, -1.36% and Occidental Petroleum OXY, -1.86% , for example, trade below levels they sold for during the financial crisis.

3. It’s time to favor value

Because of risk aversion, the stocks and debt of high-quality companies look overvalued relative to those of more troubled “value” names that are out of favor because they have some flaws.

Walmart WMT, +0.04% has a market cap of $313 billion vs. $4 billion at Macy’s M, +11.81% . Procter & Gamble PG, -0.25% has a market cap of $280 billion compared to $30 billion at Kraft Heinz KHC, +2.92% . For the past year or more, investors have bunched up in quality “FAANG” tech names like Facebook FB, +0.55% , Apple AAPL, +0.71% , Amazon.com AMZN, -0.17% and Netflix NFLX, -0.54% .

“It is time to start thinking about favoring value,” says Vaselkiv. “The market is daring you to buy value today.”

4. Position for the reflation trade

“Reflation trade” refers to owning companies in sectors like energy, materials and industry which do better when economies and investor sentiment are improving — often because of central bank and government stimulus. “The coronavirus is a detour. Economies will get through this and we will see reflation,” says Vaselkiv. If so, it makes sense to consider stocks and bonds of companies with attractive yields in areas like energy and autos, he says.

Vaselkiv isn’t predicting a dramatic rebound in inflation, however. Because of trends like the continuing rollout of productivity-enhancing technology, “inflation is permanently out of the system,” he says.

That’s a bold statement. But if he’s right, it’s good news for investors. Recessions often start because the Fed overreacts to inflation and hikes rates too much, killing off growth. If inflation remains low, the risk that this will happen is very low.

5. No post-election stress disorder ahead

Economic weakness often crops up in the first year of a presidential term. Incumbent candidates pump so much federal money into the economy during the election that there’s a natural hangover afterward, according to this theory.

But Vaselkiv doesn’t see that in the cards this time around. He predicts no recession this year or next. He cites continued stimulus from the Fed, low interest rates, full employment, high consumer confidence and healthy consumer balance sheets.

“Barring some exogenous factor, we don’t see a recession,” says Vaselkiv. “And we don’t think the exogenous factor is coronavirus.”

At the time of publication, Michael Brush had no positions in any stocks mentioned in this column. Brush has suggested XOM, OXY, WMT, PG, FB, AMZN and NFLX in his stock newsletter Brush Up on Stocks.

Best Cryptocurrency

Eric Huffman
Contributor, Benzinga

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Bitcoin, a better-known cryptocurrency and arguably the current gold standard for cryptocurrency investments, gained over 1300% in 2020. More than a dozen other cryptocurrencies outperformed Bitcoin with gains ranging from 3300% up to Ripple’s astounding 36,000% gain. Since then, crypto enthusiasts have been trying to figure out the next bitcoin or best cryptocurrency they can get their hands on – and Benzinga compiled this list to help.

Best Cryptocurrency:

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Cryptocurrency Explained

The first cryptocurrency was Bitcoin, invented in 2009 by a pseudonymous developer named Satoshi Nakamoto. The market doesn’t know the true identity of Satoshi Nakamoto, but the groundwork laid by the invention of Bitcoin paved the way for other digital currencies.

It also led to the growing acceptance of cryptocurrencies as both an investment opportunity and as a medium of exchange, a way to securely transfer money from one currency owner to another digitally and without the use of traditional banks or financial institutions.

Cryptocurrencies are designed to function as money, an alternative to the fiat currencies of the world, many of which are in various stages of erosion through inflation or are at risk of government seizure. Greece, a country with a 45% income tax rate, seizes over 900 bank accounts per day.

The island nation of Cyprus, a budding financial center, suffered the consequences of Greek debt defaults, forcing Cyprus’ government to seize depositor’s funds to remain solvent. Venezuela’s inflation rate is currently over 46,000%, which creates a financial crisis that threatens the survival of families in the country.

Cryptocurrency Advantages

Cryptocurrencies offer several advantages when compared with traditional banking, money transfers, and fiat currencies.

  • Privacy. Many cryptocurrencies are designed with privacy in mind and obscure the identity of the sender and receiver of cryptocurrency funds. Only cash provides similar anonymity.
  • Decentralization. Cryptocurrency owners use a wallet to access their currency and receive or send funds from a specific wallet address that uses a secret key for access. Some also use an exchange to store currency, although the practice brings additional risk. The record of the currency exists on the blockchain with a copy stored on every full node, a computer that keeps a ledger locally and syncs with other computers online. Your money isn’t in a single bank, or even several. The decentralized nature of cryptocurrency ledgers makes cryptocurrencies less vulnerable to seizure or localized risks, like fires or hardware failures. The data isn’t just stored off-site, it’s copied worldwide to all full nodes.
  • Scarcity. Bitcoin has a fixed supply. Over 17 million Bitcoin are in existence. However, only 21 million Bitcoin will ever exist. It’s built into the code for the currency. The fixed supply gives Bitcoin and other cryptocurrencies similar characteristics to gold, silver, or other precious metals that have historically been used as money. Unlike U.S. Dollars, British Pounds or any other fiat currency, after the full supply is in circulation, the supply will never grow, devaluing the currency’s buying power.
  • Smart Contracts. Some cryptocurrencies have a unique feature that can’t be duplicated with fiat currencies. Ethereum is among the best examples with its robust support for “smart contracts”, essentially programs that live on the blockchain and can be used to manage transactions as well as many other uses, some of which we may not have yet imagined. At a base level, these contracts can be used to replace arbiters or escrow services. The smart contract can manage the details of a transaction, only releasing payment when predefined conditions are met.
  • Cost of Transfers. The cost associated with cryptocurrency transfers can be a pro or a con, depending on the type of currency, the type of transfer, and the speed of the transfer. Bitcoin, for example, can become prohibitively expensive if you need fast clearance for a transaction. Costs are less problematic for less time-sensitive transactions. Other types of cryptocurrencies, such as Ripple, are fast and inexpensive to transfer, leading to increased adoption of Ripple-based transactions and related technology by financial institutions.

Cryptocurrency Disadvantages

Cryptocurrencies come with a list of considerations that can help investors make safer investments. It’s fair to say that there is no safe cryptocurrency at this early stage, but with careful planning, you can assemble a portfolio that limits your risk while still providing you the opportunity to exit the trade if needed.

  • Market Adoption. Awareness for Cryptocurrencies is growing, but most of the focus has been on Bitcoin. Relatively few retailers accept cryptocurrencies for payment, but there are a few. Overstock.com announced in 2020 that they would accept cryptocurrencies as payment. Payments will be limited to Bitcoin, Ethereum, Litecoin, Dash, and Monero, giving the other 1,500+ cryptocurrencies the cold shoulder. Pizzaforcoins.com accepts over 50 cryptocurrencies, allowing cryptocurrency owners to buy pizza from local establishments and have it delivered. Market adoption of cryptocurrencies for payment has been slow and options continue to be limited but the cryptocurrency market can change quickly.
  • Obsolescence. As many as 1,000 cryptocurrencies have failed already, with more currencies sure to follow. The most common type of failure is at the Initial Coin Offering (ICO) or shortly thereafter, with many coins finding a crowded market for coins with similar characteristics to existing offerings, causing skepticism among investors. In some other cases, the ICO itself was just a cash grab, with the founders running off with investor funds. Currently, ICOs are unregulated.
  • Abandoned Cryptocurrency Projects. Most of the investment money for cryptocurrencies is focused on a relatively small group of coins. Without investor interest, projects can get abandoned, leaving investors with essentially worthless digital coins.
  • Regulation Risk. As it pertains to cryptocurrencies, regulation risk has two sides. In the U.S., cryptocurrencies are not regulated at a federal level, leaving states the option to introduce rules and regulations regarding cryptocurrencies or the blockchain technology that serves as the backbone for cryptocurrencies. On the other hand, some investors and finance experts have expressed concern over future regulation for cryptocurrencies, which could cause a drop in demand or eliminate demand altogether.
  • Liquidity Risk. Investors and lesser-known cryptocurrencies may find fewer buyers, creating challenges when looking to exit a position.
  • Volatility Risk. Few investment classes can rival cryptocurrencies when it comes to price volatility. Prices can rise or fall dramatically in a single day, making or breaking fortunes.
  • Third-party Risk. Mt. Gox, a Bitcoin exchange based in Japan, and the leading exchange worldwide in 2020 was hacked, leading to a loss of nearly half a billion dollars in Bitcoin. In total, an estimated 850,000 Bitcoins belonging to investors went missing, ultimately forcing the exchange into bankruptcy.
  • Secure Keys. Cryptocurrencies are often kept in a digital wallet, which is secured by a long code or a long series of words. Unlike your bank account or investment account, there is no recovery process available if you lose your password. Without your password, your cryptocurrency wallet and its contents are no longer accessible.

What to Look for in a Cryptocurrency

Weiss Ratings, a leading independent rating agency for financial institutions, recently introduced ratings for cryptocurrencies, identifying Bitcoin, Ripple, EOS, NEO, and Steem as its five top-rated cryptocurrencies. Weiss also spotlights a dozen cryptocurrencies it identifies as being the weakest.

  • Adoption Rate. Cryptocurrencies are highly speculative investments in the biggest gains are sometimes found among newly introduced coins or coins whose technology has found the market, as was the case with Ripple. More cautious investors may choose to look at adoption rate, focusing portfolio investment on cryptocurrencies that are currently used in real-world transactions.
  • Market Cap. In many ways, the market cap for a given cryptocurrency goes hand-in-hand with liquidity. Fledgling cryptocurrencies may not ever find the market, preventing investors from exiting the position profitably.
  • Promising New Technology. Ethereum and Ripple both owe their stratospheric gains in 2020 to the innovative technology built into their respective platforms, differentiating both cryptocurrencies from the crowded market of often similar offerings.
  • Security or Anonymity Features. Technology such as smart contracts, found in Ethereum and several other cryptocurrencies make transactions more secure by enabling a set of rules for each transaction. Some cryptocurrencies, like Monero, place a strong focus on anonymity, obscuring the identity of the sender and receiver of funds.
  • Industry Utility. Ethereum and Ripple are again good examples of cryptocurrencies with utility beyond a simple medium of exchange. Ripple, in particular, attributes its rise in popularity and a price appreciation of 36,000% in 2020 to acceptance within the financial industry as a tool to transfer money around the world inexpensively and faster than by traditional methods.

Red Flags for Cryptocurrencies

When choosing a cryptocurrency for investment purposes with the hope that it may someday become a tool for monetary trade, there are some things to look out for and some evidence that sometimes it’s more prudent to wait until a market is established for a cryptocurrency.

  • Redundant Technology. Many cryptocurrencies are built on open-source code, making it relatively easy to clone an existing cryptocurrency, possibly making only minor changes to the code or the cryptocurrency’s features. In these cases, the new currency may not offer enough unique benefits to justify the investment or suggest that the currency will be widely adopted.
  • Limited Market Interest. The cryptocurrency market has its well-known heroes, but it also has its share of duds, well-intentioned cryptocurrencies that never get off the ground or poorly-supported or niche currencies that are better described as a hobby than as a currency. Staying with currencies that have shown signs of continuing market interest is a safer bet.
  • Low Market Cap. Much as market cap helps us to instantly distinguish between a Dow Jones stock and a penny stock, a higher market cap points to a more vibrant market and greater liquidity. Thinly traded cryptocurrencies or those with a low market cap could be a trap that’s difficult to escape if you need to make an exit.
  • Limited Exchange Support. Similar to the concerns regarding market cap, a cryptocurrency with little support on exchanges can make it difficult to trade, often requiring several steps and conversions to make a single trade. Cryptocurrencies with wider support on popular exchanges make it easier to build or exit a position.

How We Chose the Best Cryptocurrencies

The most daring investors can purchase new cryptocurrencies at the initial coin offering or shortly thereafter, following the example set by many of today’s Bitcoin millionaires. However, there may never be a “next Bitcoin”, and the estimated 1,000 cryptocurrencies that have vanished into the digital ether point to risks for early investors. We took into consideration:

  • More established cryptocurrencies with a larger market cap
  • Promising technology
  • Those that are traded on a number of exchanges (providing enhanced liquidity)
  • Historic performance and recent trends
  • Volatility

Best Cryptocurrencies

1. Bitcoin (BTC)

The granddaddy of all cryptocurrencies, Bitcoin was first and is the most well-known cryptocurrency on the market. It also benefits from the largest market cap and is among the most highly traded cryptocurrency, assuring liquidity in the short term. Bitcoin is the king when it comes to retail adoption, leading all other cryptocurrencies in terms of acceptance as a payment medium.

Down significantly from its all-time high of over $20,000 per Bitcoin, BTC may have plenty of room for growth despite an increasingly crowded field of competitors.

2. Ethereum (ETH)

As the currency and platform that made “smart contracts” part of the cryptocurrency market’s vocabulary, Ethereum has seen massive gains since its introduction in 2020. Currently trailing only Bitcoin in regard to market capitalization, Ethereum has become one of the most widely discussed cryptocurrency projects in the world.

A consortium of some of the biggest names in the business, including Microsoft, Intel, Chase, and J.P. Morgan are building business-ready versions of the software that drives Ethereum. With momentum and market enthusiasm behind the Ethereum project, there’s no reason to think Ethereum has run its course and investors should consider Ethereum as part of a cryptocurrency portfolio.

3. Ripple (XRP)

Ripple diverges from much of its cryptocurrency competitors in a number of ways. Ripple is an invention of Ripple Labs, and the Ripple token is being used in high-speed and low-cost money transfers worldwide.

Ripple Labs has announced a number of partnerships with leading money transfer services, with more financial market partnerships expected in the future.

Unlike many cryptocurrencies that trade on hopes and dreams, Ripple is being used in the real world today, showing signs of future adoption within the financial market community. Ripple rise in value over 36,000% in 2020, but similar gains may not be likely going forward.

4. EOS (EOS)

Another cryptocurrency with smart contracts like Ethereum, and which is gaining in popularity is EOS. EOS is credited with being the first blockchain operating system, offering decentralized applications that live on the blockchain and parallel processing, enabling faster transaction speeds and better scalability than some competitors. Transactions on the EOS network are free.

Many competitors, including Ethereum, have a transaction fee for transferring coins or tokens from one wallet address to another. EOS concluded its year-long ICO in May of this year, raising a total of $4 billion. The longer-duration ICO was done in an attempt to create an orderly market for EOS without the dramatic run-up and sudden crash common to cryptocurrencies when launched.

YTD performance for EOS is flat, with less volatility than has been seen with some competitors. Enthusiasm for the project remains high, and EOS is one of the most actively traded cryptocurrencies on exchanges.

5. Bitcoin Cash (BCH)

Bitcoin Cash, a fork of the original Bitcoin project, is one to watch, as it’s the fourth-largest cryptocurrency by market cap.

If forced to level criticism against Bitcoin in its current form, slow transaction speeds are among its primary challenges.

Bitcoin cash was developed using modified code from the Bitcoin project that allowed larger block sizes, promoting faster transaction times and better scalability.

Although not yet as widely accepted or as widely known as Bitcoin, Bitcoin Cash is still a promising alternative to Bitcoin with an enthusiastic market following.

6. Litecoin (LTC)

Now accepted as a payment method at Overstock.com, Litecoin may also have a bright future. Long-term investors in LTC have been rewarded with up to 20x returns, although a spike in late December 2020 sent the price of LTC to over $350.

Litecoin now trades at around $84 USD, and although showing signs of consolidation remains actively traded and is consistently one of the top 10 cryptocurrencies when measured by market cap. Litecoin boasts a faster transaction time than Bitcoin, largely attributed to its use of a different type of algorithm to add transactions to the blockchain. Increased transaction speed also enhances scalability.

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Final Thoughts on Best Cryptocurrencies

Cryptocurrencies are still in their formative years. If you’re new to cryptocurrencies, you may be better served by investing only risk capital and by building a portfolio of widely traded cryptocurrencies. Initial coin offerings can be tempting, particularly with the parabolic rises common to ICOs. Almost as common is a precipitous fall following the ICO.

More established currencies help to prevent some of the volatility and provide better liquidity than found with newly minted cryptocurrencies. It’s important to learn where a cryptocurrency can be traded and how big the market is for that cryptocurrency.

Many early investors have found themselves without a viable way to exit the position. If cryptocurrencies are here to stay, some very good opportunities are likely to exist among the most commonly traded currencies, while also minimizing risk due to abandoned projects or lack of liquidity.

Craving more cryptocurrency knowledge? Check out Benzinga’s guides to the best cryptocurrency exchange, how to trade cryptocurrency and best cryptocurrency wallets.

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What is the best time to buy Bitcoin?

Buying Bitcoin used to be a real headache, but not anymore. With the introduction of new mobile and web services, people can now easily purchase cryptocurrencies in minutes from nearly any place on earth. Yet, most of the available providers offer unfairly high rates and commission.

Buying Bitcoin used to be a real headache, but not anymore. With the introduction of new mobile and web services, people can now easily purchase cryptocurrencies in minutes from nearly any place on earth. Yet, most of the available providers offer unfairly high rates and commission.

Bitcoin is known for its volatility, a double-edged sword that has turned some investors into millionaires very quickly while burning others along the way. If you are planning to purchase the cryptocurrency world, then the obvious question left is when the right time to do it.

If you bought Bitcoin in December 2020, then most likely ended up on a loss. On the contrary, if you bought in January 2020, you could be sitting on a considerable profit. So, what is the best time to buy bitcoin? What indicators should you turn to for near-accurate analysis?

The Best Time To Buy Bitcoin

Let’s face it. Not many people in the cryptocurrency industry have solid financial knowledge. Most cryptocurrency holders are self-taught while others rely on knowledge borrowed from the traditional financial sector. There is nothing wrong with that as long as the shoe fits.

Economists have weighed in on the best time to buy bitcoin, giving their observations based on several factors and analysis.

Academics from the prestigious Yale University developed a technique on past price action to predict the price of bitcoin. The economists – Yukun Liu and Aleh Tsyvinski – analyzed bitcoin’s price for the past seven years and developed a model that predicts BTC’s price.

The research showed cryptocurrencies widely differ from traditional assets when it comes to the factors that determine price swings.

Economists proved that Bitcoin, unlike stocks and commodities, heavily relies on momentum. In other words, this means that if Bitcoin is performing well, it will likely continue to do so in the short-term. According to this study, investors should purchase the leading digital currency if its value appreciates by more than 20 percent in a week.

What is the best day to buy cryptocurrency?

Traditional stock markets operate only during certain hours of the day and week. But the cryptocurrency market is open 24/7. That means you can buy, sell, exchange, and trade cryptocurrencies anytime as long as you have an internet connection.

Even though there are no trading sessions that account for more or less volume, there are certain parameters to take into account before buying cryptocurrency.

According to multiple analyses on average daily bitcoin prices, Sunday and Monday are the best days to buy BTC. The sole reason behind this statement is that prices tend to be at its lowest in those days.

3 Theories To Get Bitcoin Timing Right

After examining multiple approaches on how to determine the perfect timing to buy cryptocurrency, we’ve shortlisted three theories:

Theory 1

The demand for Bitcoin slows down during the weekends, pushing its price to be lower on Mondays. On the contrary, Bitcoin price is assumed to be high on Fridays and Saturdays.

Theory 2

This theory suggests people decide to buy BTC during the weekends, and execute orders as soon as the week begins. In this scenario, volumes are higher on Mondays and a more cautious behavior expected as the week goes by.

Theory 3

Experienced traders would typically avoid buying bitcoin in dates 9-to-5 workers get paid, usually in the middle and end of the month. The logic is simple: when people have money in their pockets can buy bitcoin, driving demand, and its price higher.

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Time of the day to buy BTC

Okay. Now that we have a better understanding of which days to avoid when buying Bitcoin and other cryptocurrencies, the next issue to resolve would be the specific timeframe.

Should you buy bitcoin in the morning, afternoon, or evening? As previously mentioned, Bitcoin isn’t tied to rigid schedules such as stocks and even fiat currencies.

Both the stock and forex markets tend to react to expected announcements at certain times of the day. With cryptocurrencies, it all gets a bit blurred since they don’t follow the same behavior or respond to the same kind of announcements.

No long faces. There are still ways to predict the right time to buy Bitcoin. As a general rule, BTC price increases in value at a very rapid pace and then steadily decline as it enters a period of stability.

Global instability

Geopolitics play a significant role in every single market. For example, the uncertainty of Brexit has weakened the British Pound considerably in just a matter of months.

Political instability and chaos can quickly increase the price of Bitcoin. The leading digital asset is regarded as “digital gold,” a safe-haven asset that acts just like precious metals.

The US-China trade war exemplifies this case with ultimate precision. The rising tension between these super nations has pushed the Yuan to retreat and strengthened Bitcoin’s position.

Buying the dip

Buying cheap, selling dear isn’t a new concept. As the oil tycoon Paul Getty once said: “Buy when everyone else is selling and hold until everyone else is buying.”

When the price nosedives, it is regarded as the best time to buy. The question is, when do you know if the price has reached its bottom? You may never know, but if it is continuously falling, it could be best to buy it in chunks.

This is called averaging down. You can buy a certain amount of Bitcoin this week and keep some of your money to buy the following week. If the price falls again, you’ll benefit as your average price will be lower. It will work in your favor when you finally decide to cash out your holdings.

The bottom line

It is difficult to predict the best time to buy bitcoin. Bitcoin is experimental, and therefore, volatility is expected to remain in place. The same applies to other cryptocurrencies.

No one can tell you what will happen in the next week, month, or year. Yet, some of the tips outlined in this article may come handy when trying to define the right moment to enter the market.

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