When is the best time to buy cryptocurrency?

Today's traders can follow one of two popular strategies for investing in cryptocurrencies:

Buying coins over the long term during market downturns

Professional traders and experienced investors use periods of downturn in financial markets to find and buy promising coins while their quotes are at their lowest. This strategy allows you to steadily grow your investment portfolio. After the market cycle changes and prices rise, some of the assets can be sold at a higher price, and the proceeds can be invested in new, promising instruments. This is a fairly productive strategy, but you must choose coins with high growth potential and have patience.

Short-term purchases on the basis of technical analysis of the market

This is a strategy for those investors who are not ready to wait and aim to get higher profits from investing their funds. Cryptocurrency trading allows you to quickly multiply capital but requires certain skills. In their work, traders use technical analysis of the market and trading strategy, which gives signals when the price reaches the set values or market reversals. Short-term transactions give an opportunity to raise capital not only in periods of rising prices but also when prices are falling if a deal is opened to sell the asset.

The cryptocurrency market is very volatile and quotes can rise or fall quickly, which can cause a full or partial loss of the deposit. A protective stop-loss order helps to limit losses when the price reverses. Beginning traders must learn the skills and test the strategy on a demo account before they start real trading. You should also stick to money management rules and not use more than 3-5% of your entire capital in a single trade.

Are cryptocurrency investments profitable?

In the past years, the cryptocurrency market has seen long-term growth, although there have been periodic corrections. Now there is a slowdown in the global economy, many cryptocurrencies have fallen in value, and financial markets are subject to volatility. Investments in cryptocurrency can bring hundreds of percent profit if the right asset and time to buy are chosen. Traders can make profits in any market situation, here the ability to conduct technical analysis and make short-term forecasts of the price movement comes to the fore. But it is important to keep in mind the risks - you should not invest all of your money in buying one cryptocurrency. Experts recommend including different assets in your portfolio, keeping it well diversified, and not panicking at possible drawdowns.

Also, if you want to use all available trading tools to increase your capital as soon as possible - follow this link below, or contact us via live chat. Our experts will help you to choose the best strategy for success.