When is it the right time to invest?
is there such thing?
Imagine if we could all just pinpoint exactly when it is the best or right time to invest in anything? We would most likely all be millionaires. It just isn’t that simple, you shouldn’t just believe the “get-rich-quick” myths because it could lead you to lose the shirt off your back, but instead put in the work to learn the best you can do with your tradings.
In the stock market, it can be a tiny bit easier to define better timings during a day period, a month period, or year period because it is a market that opens and closes, therefore the market behaves accordingly, making it easier to define when there is more volume, less buyers which is in fact during opening and closing times.
Now, in the crypto market it can be much more difficult because it is a 24h market. The market is always open, which means it´s “opening” and “closing” time at all times somewhere for somebody in the world; people are buying and selling at all times worldwide.
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In both cases, it is important to learn technical analysis and the reading of charts because the history of the markets is one of the few ways to try to predict what could repeat in a particular market with no guarantees.
Due to the crypto winter, the community became very skeptical, some started selling desperately trying to get out of the market, others are still trusting and hodling hard and believing for the rise after the decline. This basically means cryptos have reached lowest lows making it a good time to buy.
The best time to buy
“What you are seeing now is a bit of panic selling. To me, it’s one of the better entry points that we´ve had in a long time” — Brian Kelly at the “Power Lunch” at CNBC.
The basic strategy to buy in any market, is, when the market is panicking and the prices are low, experienced traders call this the “perfect time to buy”.
While rookies freak out, the experienced pack on currencies, assets, bonds, funds, stocks, shares, commodities and cryptos.
Buy low, sell high. That´s the basic trading strategy model for profiting.
Get in or get out?
During this time of uncertainty, many are asking whether to get out or get in, and I´m not sure people really care about finding the right time, not in the crypto industry at least.
I feel as though people are moved mostly by emotions in the crypto industry, they have yet to train their emotions and trade rationally as with experienced traders in the stock market, so they will either get in or get out by instinct, not so much by pragmatism.
And this is obviously not okay, but the industry is still immature and behaves likewise.
- If you are conservative investor you will most likely get out, you are freaking out with the crypto winter, and you are selling (if you haven’t already sold everything) like there´s no tomorrow.
- If you are a moderate investor, you might spread the risks, sell some, buy some, and hodl some.
- And If you are an aggressive investor you are either already in or will get in, you’re taking all the cryptos the conservatives are leaving behind; the risky crypto market is a pleasurable pool for you right now, and it has been for the past year. The money to be made in cryptos is in the hands of the moderate and aggressive.
Whether to get in or get out, could be a risk tolerance matter. Only invest in what allows you to sleep at night.
If it causes you to fear what would it matter to you if it is the right time to invest?
The fact that you are fearful is an indication that you might be trying to use money you cannot afford to lose, and while it may be right for others it could still be wrong for you, and it eventually lead you to lose all your money.
As legendary Warren Buffet says “The best time to invest was yesterday, second best is today” — Cryptos and blockchain aren’t going anywhere, stay cool, invest in the technology (not only to make money) and remember — No FOMO needed.
Which market should I get in or get out?
To learn to identify which market to get in or get out, and the perfect timing to do so, you must step away from tribalism, which is very common in the crypto world. You must find a place in the industry where you can quantify projects you desire to invest without biases.
Looking for a quick way to make money?
You are in the wrong business. If you have been a spectator, I’m sure you have seen many become millionaires with cryptos, as well as many people who have lost everything.
People that feel like they missed out on the opportunity to invest in cryptos are most likely thinking of the money they could’ve made, and not necessarily the technology.
The reason I say this is because it will never be too late to invest in the technology, cryptocurrency is inevitably the future, at one point or another the world will have to acquire and change their ways because fiduciary money has its days counted.
Why?
First reason being, this generation and the ones to come, they do not want to deal with fiat, they do not trust banks nor credit cards and the only reason cryptos have survived this far is because they want cryptos.
Second, imagine having a transparent view of governments, organizations, institutes, schools of all sorts, medical history, scientific projects, and more?
Cryptocurrency and blockchain have taken down the many walls between human beings worldwide, and we like it! We enjoy having direct access, immediate access to vital things.
And third, these technologies will replace third parties of all sorts, it will save trillions used today to print notes, for the transportation of such and the safeguard they require.
Track your moves and find your best timings to invest
Experienced traders and investors are already doing this.
If you are currently a trader or an investor without previous experience you are most likely not keeping records. This could be key to help you in the future to enter and exit the market. So write down all your moves, when, why, the time and date. Keep a good track of your wins and losses to help you find patterns and even a personal style of trading that may be working just for you.
Cryptocurrency Seasonality
According to Alessio Rastani, a 7-year cryptocurrency seasonal pattern shows the cheapest times/lowest bitcoin prices were between June and October.
So, if the Bitcoin market was to repeat itself as it has done for the past 7-years, October would be the best time to buy because the charts show it is the timing where it is sold for the lowest price compared to any other time of the year.
But as Mr. Rastani says, “you should take this information with a pinch of salt”, these are just probabilities and not absolute truth, yet it is definitely helpful.
Alessio
Keep track of the prices of the projects you believe in, create your own seasonality charts to find out the best timings to invest.
You might want to read Trading Styles to help you invest according to your personality and consequently help you lose less money.
Conclusion:
“Similar to how UBER is disrupting the taxi market, Airbnb disrupting the hospitality market, Amazon and Alibaba disrupting almost every retail market, Facebook the content market, cryptos are disrupting the financial markets.” –Mastercrypto.com
Cryptos have come to disrupt the financial systems, and if we could learn a thing or two from history, after a winter, a long crash, or a bear season always comes the ascend.
So to summarize, according to the opinions in the market the basic formula is: enter the market to buy at a low price, sell at a high price, hodl until it appreciates in the long run.
Hope this has helped you find your best timing to enter the market. If you have been successful in any way, please share with us in the comments and help other traders.
We wish you the best of tradings,
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Disclaimer: Our team works hard to bring you the best content in the cryptocurrency market, but it is only our point of view and not legal advice, and may be divergent from other opinions, so please do not make any decisions without concluding studies of your own to understand the profit possibilities and uncertainties involved at your own risk.
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