Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who may pay to be displayed in certain positions on certain pages, or may compensate us for referring users to their services. While our reviews and assessments of each product are independent and unbiased, the order in which brands are presented and the placement of offers may be impacted and some of the links on this page may be affiliate links from which we earn a commission. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
What’s the Best Time to Buy Crypto?
Key Takeaways
Copy link to section- Market timing matters, but it’s not everything: Predicting exact highs and lows is nearly impossible, so focus on overall trends.
- Understanding market cycles helps: The best buying opportunities often occur during the accumulation phase, market dips, or bear markets.
- Fear can create opportunities: Extreme fear in the market often signals undervalued prices and potential buying chances.
- Corrections offer entry points: Buying after a major correction can help you get in at a lower price before the market rebounds.
- Patience is key: Long-term strategies, such as dollar-cost averaging, can help smooth out volatility and reduce risk.
What’s the Best Time to Buy Cryptocurrencies?
Copy link to sectionIn the world of cryptocurrencies, timing rules everything.
Knowing when to buy will significantly affect your returns even if prices are erratic.
Is there truly a “best time” to purchase Bitcoins, though?
Although nobody can forecast the market exactly, there are techniques and trends that could guide your better judgments. Let us investigate these.
Understanding Market Cycles
Copy link to sectionCryptocurrency markets are often driven by general economic trends, investor mood, and technology advancements. Understanding the factors that drive crypto prices is an imporant step when looking for the ‘perfect’ time to buy.
Here are the key phases of a market cycle:
Accumulating Phase
Copy link to sectionThis is when prices are low, and smart money (experienced investors) starts buying. It’s often the best time to buy, but it requires patience and confidence in the market’s long-term potential.
Bull Run
Copy link to sectionHype and FOMO (fear of missing out) fuel fast-rising prices in a bull run.
Purchasing during a bull run is attractive, but prices are frequently exaggerated, so there is more chance of a correction.
Distribution Phase
Copy link to sectionEarly investors start selling to lock in gains as prices peak.
For novice purchasers, this time might be dangerous since prices can rapidly drop.
Bear Market
Copy link to sectionPrices drop, and investor attitude becomes pessimistic.
Although this is a difficult period, for people with a long-term perspective, bear markets might provide purchasing prospects.
Best Times to Buy Cryptocurrencies
Copy link to sectionTime in the market is better than timing the market.
This sums up the crypto market perfectly.
While its nearly impossible to perfectly time your buys, there are a few tips you can use to help get better entries to find the top crypto to buy now.
Here’s a closer look:
- During Market Dips. Cryptocurrencies often experience short-term price dips, even during bull markets. These dips can be good opportunities to buy at a lower price.
- After Major Corrections. Corrections are significant price drops (usually 10% or more) that occur after a period of growth.
- During Bear Markets. Bear markets, when prices are consistently low, can be great times to accumulate cryptocurrencies. For example, during the 2018-2019 bear market, Bitcoin dropped to around $3,000—a bargain compared to its previous highs.
- When Fear is High. The Crypto Fear & Greed Index measures market sentiment. When the index shows “extreme fear,” it often indicates a good buying opportunity, as prices may be undervalued.
- At the Start of Bull Runs. Identifying the start of a bull run can be challenging, but early signs include increasing trading volumes, positive news, and rising prices.
Final Thoughts
Copy link to sectionWhile there’s no perfect time to buy cryptocurrencies, understanding market cycles and using strategies like dollar-cost averaging can help you make smarter decisions.
It’s important to focus on both the technicals and fundamentals when buying crypto to help you get the best entry.
But, remember, it’s almost impossible to buy the exact low and sell the exact high.
That’s why you shouldn’t get too caught up in perfect timing, especially if you have a long-term outlook.
