When is the Right Time to Buy Bitcoin?

The bitcoin price has started trading flat for this year and this is due to the financial and economic damage caused by the coronavirus pandemic. For the month of March this year, bitcoin price has dropped to $4,000. Luckily, it is climbing once again to $7,000 starting last April. People own cryptocurrencies for several reasons. Some individuals opt to store these cryptocurrencies as value because of the limited supply of Bitcoin. Others choose to store it as they wait for its value to become higher than the U.S. dollar so they could earn more profit. There are also those who buy Bitcoins just because they use it in their daily transactions as they travel around the world or shop for groceries. Lightning Wallets such as Lastbit even make it possible to pay in stores that don’t accept bitcoin.

Although Bitcoin is still not recognized as a legal tender across Australia, it is not deemed illegal to use it for financial transactions. Proof of this is the fact that the Australian Taxation Office announced in 2018 that it will be imposing taxes on Bitcoins, as a property that will be under the rules of the CGT or Capital Gains Tax. Thus, more and more Australians are also investing on Bitcoins these days. Today, many people are using Swyftx to trade BTC in Australia. However, the best time to buy Bitcoin still remains in the dark for some Bitcoin traders, especially for those who are still new in this industry. According to studies conducted by bitcoin experts, the best time for purchasing bitcoins couldn’t be etched on rock since the cryptocurrency industry is highly volatile. However, some findings from studies and observations made by cryptocurrency analysts reveal the following:

 

The Price of Bitcoin Tends to Decrease on Mondays

During weekends, the demand for Bitcoin will tend to slow down. In turn, its price is also more likely to go down when Monday comes. However, Bitcoin price will also soar high again during Fridays and Saturdays. 

Some People Prefer to Buy on a Weekend

Some findings from studies made also reveal that many people decide to buy Bitcoin during the weekends and make transactions from the start of the week. In turn, volumes increase on the first day of the week, but people should be more cautious in their behavior by the rest of the week. 

Avoid Buying During Pay Days

Those who have been in the Bitcoin trading industry know that they should avoid purchasing bitcoins during the time when employees earning salaries are being paid. This usually occurs in the middle or by the end of the month. The reason for this is obvious. When people have more money to buy Bitcoins, the demand for this cryptocurrency increases along with its price. 

Use a TDM Analysis Software to Figure Out the Best Time

If you’re looking to buy Bitcoin but are not certain when is the best day of the week to do it, it is best to use a software or get advice from a bitcoin broker who helps you make sound analysis. With this software, it will become easier for you to find out whether it is best to purchase Bitcoins at the start of the week, when there is an uptrend or if it is best to sell towards the end of the week when a downturn occurs so you are more likely to get the best price. 

One of the best things about the cryptocurrency world is its promise for a more transparent way of banking, which is something that people could not expect from the current mainstream banking. Cryptocurrency promises immutability and decentralization which helps ensure that everyone involved in the network has a clear idea of what is currently happening within the system. 

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.