When to Buy Cryptocurrency with the Help of Coinbase in Canada


When to Buy Cryptocurrency with the Help of Coinbase in Canada
When to Buy Cryptocurrency with the Help of Coinbase in Canada
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Many people shy away from cryptocurrency because they worry about the volatility of this asset class. However, now serves as an excellent time to diversify an investment portfolio because the world is also in a period of volatility. When buying this asset, people wonder if they should time their trades. As cryptocurrency trading continues around the clock, timing a purchase or sale isn’t a cut-and-dried process.

Cryptocurrency

Expert Recommendations

When purchasing cryptocurrency through Coinbase in Canada or any cryptocurrency platform, practice dollar-cost averaging. Buy small quantities of a currency over a period. Doing so allows you to average out the cost across the ebbs and flows of the market. Remember that these ebbs and flows also vary by the currency being purchased. Analyze the history of the specific investment type you are interested in.

When to Buy?

Purchase cryptocurrency when you are ready to add to the investment portfolio. Doing so allows each investor to control the volatility to a certain extent while avoiding the highs and lows of the market. Never invest more in cryptocurrency or any asset that you can afford to lose. No cryptocurrency stands as a guaranteed winner. People often have great success in this market because they are lucky. It has nothing to do with the timing of the market.

Time of Day

Investors often ask if there is a certain time of the day when they should buy cryptocurrency. Again, cryptocurrencies trade 24 hours a day, so timing a trade can be challenging. However, certain patterns emerge when a person analyzes data from the past few months. Most cryptocurrencies rise and fall together, making it easier to determine a window for buying. The morning appears to be the best time to buy when investing in popular cryptocurrencies such as bitcoin and ether. However, lesser-known cryptocurrencies also typically trade higher earlier in the day.

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Day of the Week

Thursday appears to be the best day of the week to buy cryptocurrency, based on data from recent months. The price dips on that day, with Monday coming in second. Consider making a purchase on Thursday morning to get an excellent deal on an asset. Weekends serve as another good time to buy, as this is when many cryptocurrency crashes take place.

Time of the Month

As of now, it appears the end of the month serves as the best time to buy crypto. Values go up during the first third of the month. The price then collapses in the second half of the month. Wait until the end of the month and get more cryptocurrency for your money.

People need to recognize that it is impossible to determine the perfect time to buy cryptocurrency. Too many elements go into the pricing of these coins. While this asset remains protected from many outside factors that influence the pricing of conventional currencies, cryptocurrency comes with more risk. People may sell at a time outside of the parameters mentioned above as they worry about the risk they have taken on. In addition, when crypto prices jump, an investor might sell to gain a short-term profit.

Consider holding on to cryptocurrency much as you do stocks. Enter the market with the goal of holding on to the currency for the long term. Purchase a little at a time and benefit from dollar-cost averaging. Investors who use this method find they get the highest returns, even if they don’t get the thrill that comes with day trading and other volatile trading methods that provide quick wins.

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