Buying and selling are the two most fundamental activities in crypto.
Cash flow, profits and losses are generated based on buying and selling.
It's common understanding that you have to buy before you can sell,
except for the case of contract options.
Unless you won some crypto,
in which case the selling without buying
would be the last thing I would be concerned about.
So, today, we're gonna talk about when are the best times you can purchase crypto,
when you should and should not enter the market.
Let's get it.
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Alright, guys.
Before any of you consider buying crypto,
it's crucial to have a good idea about everything in your financial life.
You need to be sure of what you have,
what you want,
and what you're aiming for.
Let's dive into the crypto world and discover when you should be buying crypto
to make the best out of trading.
First of all, review your portfolio
or the expected crypto you intend to invest in.
Besides popular coins like Bitcoin, Ethereum, XRP, Litecoin, and LINK,
there are tons of others that we can't describe.
There's so many!
Each one has its own unique characteristics
but also creates an impact on other coins.
At the same time, you'd better take a look at your wallet as well.
You have to know how big your budget is
and whether it's efficient to buy the tokens you think will appreciate.
And don't forget to do your homework.
And by that, I mean conducting market analysis and comprehending what is going on,
just being aware.
Are we in an uptrend?
Or are we in a downtrend?
Will it continue to fall?
Are traders rushing to buy or sell?
If you have no idea what I'm talking about,
I would recommend looking back at some of the previous videos in this series.
As long as you are struggling to grasp the move of the market,
I recommend not buying anything.
Now that I've told you about the need for research,
I will not dive too deep into the technical stuff,
like how to read crypto charts and indicators,
as you should know that before watching this video.
Now, let's move on to a couple of essential rules for buying crypto.
The first tip that you have to fix in your head is "buy low and sell high".
I know that I've talked about it already a lot in this series,
but it's really important.
Contrary to what normal people often do,
they purchase when they see the market is up
and think it's signaling a rally that will never stop.
Control your FOMO.
As crypto traders, you ought to buy the dip,
aka BTD.
That means you take in more products when the market is bearish,
prices are down.
Not only widens the profit margin but also helps prevent getting sucked into a crazy bubble.
The best moment to enter a downtrend is when it hits the bottom and rebounds.
That would be the perfect time to buy.
Well, to be honest, it's not so easy to precisely forecast when the market is at the lowest level.
One trick is to focus on the support line and the moving average.
You know that the support line demonstrates the price at which the bear is expected to stop and recover.
Thus, if you see the price is about to plunge below the support level,
it might be the signal to purchase.
Similarly, the moving average visually connects the price trend through average historical prices.
Based on that, traders can watch the movement of the current market price.
An important rule is don't let FOMO or the “fear of missing out” deceive you.
Have you heard about the fear of missing out?
It is the effect of crowd psychology which makes you feel like you're going to lose
if you don't follow the tendency of the group or community, you lemmings.
That explains why many people rush into buying stuff
when their prices keep climbing the ladder because they think the trend will continue,
and they will miss the opportunity.
Same situation happens when the price drops.
Everyone hastily sells out their funds,
as they fear a worse breakdown.
While in actuality, it’s their reactions that drop the market even lower.
People simply think this way:
Everybody's doing it, so if I do exactly the same, there'll be no problems.
How naive that is.
In fact, it completely goes against our rule number one,
to buy lower and sell higher.
Therefore, always maintain a cool head.
Don't let yourself be overwhelmed by your emotions.
Besides FOMO, another enemy of buying is FUD,
which stands for fear, uncertainty and doubt.
While FOMO pushes traders to follow others,
FUD spreads misinformation to collapse the confidence in the crypto market
so that traders will hesitate to buy and are encouraged to sell off the coins.
Why is somebody even tempted to do so though?
Because those scammers are hot to collect a large portion at the cheapest price.
Then they will sell at higher prices and make some sweet profits.
Traders who sold will easily fall in the trap
and buy their abandoned crypto at a higher rate.
Thus, raising your defenses and not letting these crooks slip their hands in your pockets.
So, alright, guys.
This advice is the result of years of practical experience and observation.
So pay close attention.
Do you ever ask which days of the week would be most hopeful to place a purchase?
I don’t think that question is a joke.
Even though the crypto market is open 24/7,
studies on past statistics show that Monday is when the demand and the price are most likely to slow down.
Of course, it will not be exactly 100%,
but data points out that this pattern has taken place many times before.
We call it a case of the Mondays.
Uh-oh.
Sounds like somebody's got a case of the Mondays.
So you should really take this hint into consideration
and turn it into motivation for the next week.
You might actually start liking Mondays.
We also have another trick right up our sleeves.
Which days in the month are not favorable for buying?
The answer is paydays.
Quite obvious, right?
It’s the day people receive their salaries,
if they're not lazy butts living in their parents basement.
You already know though that with more power and demand and buying power,
the price could kick up.
Therefore, you should try to avoid trading after paydays.
I'm almost finished. I promise.
That’s what she said!
Let's talk about the Commitments of Traders Report,
which is published each Friday by the Commodity Futures Trading Commission or the CFTC.
It combines and updates the latest changes in market price, positions, volumes,
and provides snapshots of projections for the upcoming week.
Since its first publication in December of 2017,
the Commitments of Traders Report has become a significant and reliable forecaster
for uncountable crypto traders who are looking for entry times.
The other one worth a try is a text and data mining analysis software
to digest market metrics, get a solid result of pricing prediction.
Software integrates applications of big data
to streamline metadata regarding the crypto market and related news to generate a trustworthy analysis,
which helps traders make decisions on entry points more easily and safely.
And that's all for today's video,
about when you should enter the crypto market.
No matter what, crypto is still a new and volatile asset.
Hence, all those tactics might just be the tip of the iceberg for an aspiring trader.
But I hope you guys can find them useful in the real world.
But now it's your turn.
What do you think are the best times to buy crypto?
Are there any methods to figure out the entry point that I have mentioned?
Or do you have another plan?
Let me know what you think in the comment section below.
I hope you enjoyed this video.
If you did, please make sure to smash the Like button and hit Subscribe to become a member of the BitSquad.
Thank you so much for watching.
Have a blessed day.
BitBoy out.