If you are a beginner in the crypto industry and you want to maximize your profit, you need to be able to know when is the perfect time to trade your assets. Knowing the right time to trade, buy, or sell is the key to success in the crypto industry.
This article will teach you the best time to trade in crypto and what you need to do to maximize your profits.
About Time
There are many ways to determine “when” the right time to trade is. That could depend on many things, like how long you plan to hold when you plan to stop trading when you plan to start trading, or even have a fundamental approach in which you use the news and current events to determine when you want to buy in and sell.
Taking a Technical approach, you could stare at candlestick charts and use statistical data to determine when the markets are low and high at certain times and dates. When looking at this, there are different time frames you could look at which will be explained further in this article.
Technical Approach
The technical approach involves using statistics to predict the best trade time. There are multiple ways to know when the best time to trade is using the technical approach, these can be determined through time frames that suit you.
Below are time frames that traders work with:
Day Trading
Day trading is one that most beginners hear about and want to try out themselves. Day trading works on a very short time scale, usually within hours and minutes. Looking at what time to enter, you would usually use the 24h time scale and determine when the market is low enough for traders to enter.
When trading, traders usually use the 15-minute time frame as their primary trend and 60 minutes as their secondary. Day trading is very intense and you have to be on high alert, making split-second decisions constantly.
Swing Trading
Swing trading works on varying time frames which depends entirely upon you. Swing trading is longer than a day but usually doesn’t go on for longer than a year. There is no exact time frame, but statistics and charts are still what swing traders use to determine when to sell and buy.
If you wish to swing trade, you must first determine how long you wish to hold your money before you sell. This will determine when the best time for you to enter is. The right time might even be while the market is at a high point, given you are willing to wait longer to realize the percentage gain you’re aiming for.
If you wish to trade within a few weeks at a time, the weekly, monthly, and 3-month time scales are what we would suggest. Swing trading is less intense but requires you to check the charts regularly. You may also set up alerts at certain price points to remind you of your trade.
Long-term Trading
Long-term trading may take multiple weeks or a few months, possibly even a few years depending on how much you would like your returns to be or if you’re waiting for your position to hit a certain price.
It isn’t that important for long-term trading when you enter the market, so long as you don’t enter it at an all-time high, as ATHs usually go down and take a very long time to reach it again. Even though entering the market isn’t that important in long-term trading, it will still be beneficial to enter it at a relatively low point to maximize profits.
Trading at this time frame requires a lot of patience and fighting urges not to sell too early. However, if patience is not a problem for you, this time frame might be the one for you since you don’t have to worry about it constantly.
Fundamental Approach
The fundamental approach uses news and current events to determine when to buy or sell. This approach is for those who are constantly in the know about practically everything political and financial.
Determining the right time to buy in using the fundamental approach will require research about what’s happening worldwide concerning crypto, financial space, and political opinions from different countries about crypto.
Cross-referencing the news with the current market price in relation to previous prices will let you know when it’s a good time to invest. For example; hearing a lot of very recent good news and optimism about a certain coin you are looking at while the coin’s price hasn’t gone up yet might be a good time to invest as the price is yet to react to the news.
FAQs
Can you live off of swing trading?
Yes, there are cases of people living off of swing trading, however, you must weigh the risks and have an emergency fund in case the market goes down for long periods of time.
What time is crypto most active?
In most places of the world, 8 AM-4 PM are the most active times, however, countries with larger populations’ timezones may influence this for you if your timezone’s population is low.
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