Cryptocurrencies such as Bitcoin can experience daily (or even hourly) price volatility, leading to uncertainty and fear of missing out or participating. When prices fluctuate, how do you know when to buy? Based on data analysis, the best time of day to buy crypto seems to be in the afternoon, while the best time of the week is Thursday morning. Leaving your money on the cryptocurrency market for months or years can offer you the best rewards. That's why it's important to invest only what you're willing to lose and stick to more conventional investments for long-term wealth creation.
Dollar-cost averaging (DCA) can be an effective way to own cryptocurrencies without the risk of unintentionally using all your funds to invest “a lump sum at a peak.” Trading robots may be useful in some circumstances, but they are not recommended for beginners looking for cryptocurrency investment tips. It may be easier to add cryptocurrencies to your portfolio directly from a brokerage that you already have a retirement account or other traditional investment account with. Given the old investment adage “buy the fall”, investors may now be looking for a slice of the volatile cryptocurrency market in the hope that this will mark a temporary recession rather than a long-term bear market. It will still be volatile, but it might be easier to sell your investment and get your money back than to invest directly.
For someone who intends to schedule a cryptocurrency purchase, it will be worthwhile to really analyze the history of specific types of investment. This volatility is a big part of the reason why experts recommend keeping your cryptocurrency investments at less than 5% of your portfolio to begin with. There are also some funds and investment funds that are exposed to cryptocurrencies, which is a less risky way to invest than buying the coins themselves.