Should I buy crypto in the morning, noon, or night, the ultimate time guide
Investing in cryptocurrencies can feel like a 24/7 job since crypto markets never close. However, the time of day you choose to invest can make a difference in your strategy. Here’s a simple breakdown of the best times of day to consider buying crypto, with examples to help guide your decisions.
1. Morning (9 AM - 12 PM EST)
Why This Time Works:
- The cryptocurrency market is influenced by global financial markets, especially stock markets in the US, Europe, and Asia.- 9 AM to 12 PM EST is when many stock markets open, and there's a surge in activity. - When stock markets like the New York Stock Exchange (NYSE) or European markets open, crypto prices can become more active. Investors often react to global news, which can cause price swings.
Example:
- You notice that Bitcoin tends to rise in value when the US stock market opens. If you buy around 9 AM, you might catch a wave of positive movement, as crypto often moves in response to stock market trends.
Pros:
- Increased trading activity- Possible price increases due to market reactions to news- Higher liquidity (more buyers and sellers)
Cons:
- Prices can be volatile and jump quickly, so you might miss the best entry point.
2. Afternoon (12 PM - 4 PM EST)
Why This Time Works:
- By this time, markets are settled into their daily routine, and trends are becoming clearer.- During the afternoon, prices might start to stabilize after any early morning price movements.- Traders may have already made their big moves in the morning, and there is less sudden volatility.
Example:
- You might notice that Ethereum price movements become steadier after the morning rush. If you wait until the afternoon, the prices could have stabilized, allowing you to buy without worrying about immediate drastic price swings.
Pros:
- Less volatility compared to early morning- More predictable trends- Easier to enter positions with less risk of sudden price drops or spikes
Cons:
- The market may not be as exciting as in the morning, with fewer sudden jumps.
3. Evening (4 PM - 8 PM EST)
Why This Time Works:
- By evening, both European and US markets are usually settled, but there’s still activity as traders react to the day’s events.- 4 PM - 8 PM EST tends to see slightly quieter markets, meaning that if you're looking for smaller price moves or avoiding big swings, this could be a better time to invest.- As fewer traders are online, prices might become more stable or move in smaller increments.
Example:
- Bitcoin’s price often settles down a bit during these hours. If you want to make a more calculated purchase without the risk of huge volatility, investing in the evening can sometimes be less stressful.
Pros:
- Less volatility and price fluctuations- Easier to buy during a calm period- Less risk of major price drops
Cons:
- Lower market activity, so fewer potential profits from quick price movements
Night (8 PM - 12 AM EST)
Why This Time Works:
- The markets are typically quieter at night, especially in the US. Many traders are winding down, which can lead to less price movement.- This could be an opportunity to buy during a calm period, avoiding rapid fluctuations.- Sometimes, night trading can offer lower prices due to the lack of active traders. Crypto prices can dip as fewer people are making large trades.
Example:
- During the night, Bitcoin might dip slightly in price due to lower trading volumes. If you spot this, it could be a good time to invest at a lower price.
Pros:
- Less risk of large swings- Possible buying opportunities during low-volume periods
Cons:
- Liquidity is lower, meaning it might be harder to sell quickly if needed- Price movement can be slow, making it less exciting
Summary: When to Invest During the Day
- Best Time: Morning (9 AM - 12 PM EST)
- Higher trading volume and activity due to the opening of global stock markets. Great if you want to catch momentum or react to news.
- Good Time: Afternoon (12 PM - 4 PM EST)
- Prices tend to stabilize after the morning rush. A good time for steady investment if you prefer fewer risks.
- Calmer Time: Evening (4 PM - 8 PM EST)
- More predictable movements, less volatility. Ideal if you want a quieter market and are not looking for big price swings.
- Late Night: Night (8 PM - 12 AM EST)
- Quieter with lower volatility. Prices may dip, presenting buying opportunities. However, liquidity is lower, and you might face slower price movements.
Final Thoughts
There’s no one-size-fits-all answer, and the best time to buy cryptocurrency depends on your investment goals. If you’re looking for quick gains, you might want to trade in the morning when there’s more action. If you prefer calmer, steadier conditions, evening or night might be better for you.
No matter when you invest, remember that cryptocurrency is a volatile market, and it's important to do your research and be prepared for price swings. Always consider your own risk tolerance and long-term goals before making an investment.