Investing in cryptocurrency has become a popular trend lately. People who have never dealt with financial markets or assets are opening crypto exchange accounts and buying cryptocurrencies. This is mainly because they heard from someone that they can make a fortune by investing in it. However, with its popularity, the question that arises is whether it is the right time to invest in cryptocurrency or when is the best time to do so.

The answer to this question is complex and complex, as cryptocurrencies are volatile assets, and their prices can change unexpectedly. However, there are still times when cryptocurrency behaves somewhat predictably, and these times are considered the best for investing in it.

When Bitcoin is really low

It is often recommended to buy Bitcoin when its price falls drastically. As the largest cryptocurrency in the market, Bitcoin typically recovers after each crash, leading to higher profits for investors over the long run.

This is why crypto crashes, also known as “crypto winters,” can be a good time to buy not only Bitcoin but also other cryptocurrencies. However, if you plan to buy altcoins, it is important to be cautious during these times, as some altcoins may fail to recover and may result in small returns or even losses.

To support this theory, we can look at Bitcoin’s historical price behavior. The first major Bitcoin crash occurred between 2018 and 2019, with the price dropping from over $10,000 to $3,000. If you had bought Bitcoin at the beginning of 2019 and waited until mid-year, you would have seen profits of over 300%. The price then fell again from $10,000 to $6,000 at the start of 2020 but then skyrocketed to $60,000 before crashing down to $31,000. It has since rebounded to hit $39,000, though it is currently experiencing another downfall that has lasted for over a year. However, there are indications and historical evidence that Bitcoin will recover to its previous peak. While we cannot guarantee this outcome, it is a likely possibility.

During crypto burns

Investing in cryptocurrencies is a widely popular activity. One way to benefit from it is by investing in a cryptocurrency that has an upcoming burn. A burn happens when blockchain developers or governance token owners decide to remove a certain amount of tokens from circulation by sending them to wallets that no one can access. Burns are usually announced before they actually happen, so if you see a burn announcement from a reliable cryptocurrency such as BNB, you can buy the token and sell it afterward for a profit.

The reason why crypto prices go up before burns is simple. During a burn, tokens are removed from circulation and will never return, which means that the supply is becoming smaller. And as demand will most likely stay the same or even grow, prices will go up. However, it is important to be cautious when buying a cryptocurrency for a burn. Some projects use burns as a last-ditch effort to try and save their crypto. If prices go down quite fast and the crypto loses value, these companies might burn certain amounts of tokens with the hopes of saving the token. But in reality, as soon as the burn happens, prices go up very slightly before people start selling, accelerating the death of these tokens.

Therefore, it is essential to have a good risk-to-reward ratio and check if the burn is a last-ditch effort to save the crypto or if it is to maintain healthy stability on the market and avoid inflation. A good example of a reliable cryptocurrency with a stable burn history is BNB. Binance takes a portion of profits and buys back at least 1 million BNB tokens from users and burns them in order to keep supply low. After each burn, prices have always gone up, although the increase may not be significant. But there are still good profits to be made.

Early in the morning

If you are someone who enjoys day trading and aims to make small but consistent profits, then buying cryptocurrencies in the early morning is a good decision. By early morning, we mean before American traders join the market. The price of cryptocurrencies tends to start slow and grow as the days go on and more people join the market. With the US being one of the largest markets for cryptocurrencies, when US traders join, they start buying crypto, and prices go up.

However, this strategy requires a good day for cryptocurrencies. Since cryptocurrencies are volatile assets, it is best to use this approach when crypto is clearly experiencing a bull run. If you notice that crypto prices are consistently going up, you can buy early in the morning and sell by the end of the day.

During Economic Crisis

Investing in cryptocurrency during times of economic crisis can be a good strategy. When people need to pay bills and other expenses, they tend to liquidate their assets, including their investments in crypto. This can cause the prices of cryptocurrencies to fall, making it a good time to buy in. Similarly, geopolitical conflicts can also impact the value of crypto as governments, private contractors, and individuals may need to sell their assets to fund specific needs.

However, as these economic and geopolitical problems subside, investments in crypto can begin to grow again, leading to increased prices and potential profits. The recent drop in crypto prices may have been influenced by the conflict between Russia and Ukraine, as well as economic issues in the EU. It is important to remember that investing in cryptocurrency carries risks and should be done carefully and with proper research.

During crypto winters

If you’re planning to make a long-term investment in cryptocurrencies, investing during crypto winters is your best bet. A crypto winter is a period when the entire crypto market is in recession, and prices of all cryptocurrencies are down. 

There are two ways to approach investing during this time. One way is to invest in big cryptocurrencies such as Bitcoin and Ethereum. These cryptocurrencies have been around for a long time and have survived many downturns, making it highly probable that they will gain value again. During crypto winters, these cryptocurrencies are significantly down compared to their previous peaks, and if they return to previous price marks, you can make good profits.

Another way is to look for new cryptocurrencies. Crypto winters act as filters for the crypto market, and as a result, some cryptocurrencies that suffer during the crypto winter may never regain their previous highs. This creates opportunities for new cryptocurrencies to take their place. If you invest small amounts into several relatively new cryptocurrencies during the crypto winter, even if only one of them succeeds, the profits could be very lucrative. However, for this strategy to work, you need to study each cryptocurrency carefully and analyze what they offer, their growth potential, and more. The tokens don’t need to be perfect, but they should be good enough, and even if one succeeds, it will cover the money invested in the failed ventures.

FAQs on the best time to invest in crypto

What is the best time of day to buy cryptocurrencies?

As cryptocurrencies are highly unpredictable, claiming that a specific time of the day is significantly better than another would be an incorrect statement since prices can change without any logical reasoning behind it. However, if we still want to consider this from a basic point of view, then buying cryptocurrencies before the opening of North American markets is the best time. This is because most of the money flows into the market, and prices generally tend to increase slightly. Therefore, purchasing before this event is the best time in general. But once again, since cryptocurrencies are highly volatile, this buying strategy is not guaranteed.

When should I buy Bitcoin?

If you are planning to invest in Bitcoin for the long term, it’s advisable to buy it when the price is low. Bitcoin tends to follow a cycle where it reaches a new peak, then the prices fall, then it reaches an even higher peak, and so on. Therefore, it’s best to buy Bitcoin when its price has reached new peaks and then fallen. However, you might have to wait for a few years before you can sell it for a considerable profit.