Making the decision to buy cryptocurrency is a worthwhile investment. As long as you buy reputable coins like Bitcoin and Ethereum, you will eventually get a decent profit. However, you can maximize your profits even more by ensuring you buy cryptocurrency at the best price. This is true for day traders, swing traders and long-term holders.
Here are four proven ways to get the best price when you buy cryptocurrency:
Deposit money on the exchange
Some exchanges allow you to buy cryptocurrency with your card or via a wire transfer. The problem with using this approach is that it often takes anything from several minutes to 3 days for the payments to clear. By the time the money hits your account, the value of the crypto could have gone significantly higher than the initial anticipated entry price. To avoid this, deposit money in the exchange first then buy cryptocurrency using your balance when the price is right.
Wait for the price to drop
Cryptocurrencies have a habit of dropping below the levels of support. Instead of buying when the price is rising, you can wait for the pullbacks. After a while, the prices will eventually crack the support and then you can make your purchase. If your exchange allows it, you can place your bids below the previous levels of support and just wait for their execution.
Watch the news
Major news often plays an important role in determining the prices of cryptocurrencies. Bad news almost always causes the prices to plummet while good news causes the prices to appreciate. Keeping abreast of the latest happenings in the crypto market is the best way of knowing when the prices are bound to drop.
Study the charts
If you study the charts, you might realize that history has a habit of repeating itself. Charts can reveal a pattern with the coin you are interested in purchasing. For instance, you might notice that a certain crypto drops in price every couple of weeks. This can inform you of the best time to buy cryptocurrency and the best time to take profits.
The best way to guarantee maximum results in cryptocurrency is to get in at the best price. Even though it is not possible to predict the markets, it is possible to guestimate with relative accuracy on how a crypto is bound to behave based on past behaviour. Before you buy cryptocurrency, take time to study the trends in order to get in at the best price possible.