Despite the recent collapse in the cryptocurrency market, we still witness numerous new projects emerging in the industry. They are connected with NFT, metaverses, DeFi, and blockchain games. Also, there are many crypto platforms striving to connect real sector companies with blockchain technologies, thus, facilitating their processes of money transfers, logistics, quality control, etc.
Investment and trading are becoming more and more popular. Many people now want to buy cryptocurrency to generate income from crypto price volatility. Let’s discuss when is the best time to buy crypto.
Crypto Market Trends
Crypto asset rates are incredibly volatile. If you look at crypto charts, you can see that rates change daily, which allows you to make a profit using a day trading strategy. Other trading strategies include:
swing trading;
position trading;
arbitrage;
scalping.
These methods differ by the timeframes during which traders open and close positions and the frequency of trades. To apply the strategies successfully, investors do extensive work on investigating the market, charts, trends, historical price indicators, etc.
What are market trends, and what is their role in trading? There are two main trends in the crypto market:
A bull market is a positive trend when the market moves upward, demand for crypto increases, and prices grow.
A bear market is when investors sell their assets massively, the market moves down, and prices drop – a pessimistic trend.
Despite total enthusiasm about buying crypto during the bull trend, it is not recommended to buy cryptocurrencies when their prices skyrocket because the trend can change at any moment, causing the price correction. So it will happen that you buy assets at a higher price, and then it loses value. On the contrary, it is better to buy cryptocurrency on the downtrend, when the rates are low, in anticipation of market growth. In that way, you will make a fortune when the trend changes while having minimal investments. And remember one of the main rules of successful investment – buy when all others are selling and sell when all around are buying.
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