Strategy for Managing Time When Trading Crypto

The Trading Crypto popularity of crypto is increasing along with the need for investors for a type of asset that is purely driven by market forces without the intervention of certain parties. This system, commonly referred to as decentralization, is derived from the blockchain technology that underlies crypto asset transactions.

These things may indeed be familiar to you. Therefore, your focus, especially beginners in the world of crypto assets, will immediately shift to the next important point about crypto: what about the profit opportunities? How can I get big profit?

Trading Crypto Assets at a Glance

Like any other asset, there are various ways to make a profit with crypto assets. You can buy several types of coins with good fundamentals and an increasing historical trend, then keep them for several years until their value gets higher.

But remember, the trend of a coin is not always guaranteed to continue to increase. There are times when the value drops, depending on the market situation—though you can keep the coin as an asset until the price returns to normal.

On the other hand, you can also take advantage of the high volatility of the crypto market and make a small profit from these price movements. You can sell or buy crypto assets in a very short timeframe.

From here, usually the question will arise, “Then, when should I trade? I don’t have a full 24 hours to look at the market situation and price movements.”

Best Time to Trading Crypto

Effective Time Allocation

The more often you trade, the higher the risk. Therefore, you need to make effective use of your trading time. In the crypto market, there is no specific trading time, because traders can trade 24 hours a day.

Although the marketplace for electronic moneys is open up continuous, the potential for effective trading is greater if you profession when global market task is high. Beyond these global market hrs, trading quantity is usually lighter, possibly leading to weak trade prices and problem in finding the right price for your deal.

One way, especially for day traders, to determine effective trading times is to follow trading sessions in financial centers such as New York, Tokyo, Europe (London), and Australia (Sydney). In other words, following the forex market trading session.

Certain trading sessions may provide better opportunities if the crypto assets you are trading, such as volume and volatility, are higher. For example, if your crypto asset is based in China, such as NEO, the trading volume will be higher in the Asian trading session.

Trading Crypto

Market Crash

Downward price trends usually cause concern, even panic, for traders. However, this condition can also provide a great buying opportunity. Traders can make a profit at a later date, when the crypto market returns to health and prices increase.

A market crash may seem like a good time to buy. In theory, it makes sense to try to buy an asset when the price is lower, and then sell it when the price peaks.

However, this is not as simple as the theory. Before ‘shopping spree’, you need to pay attention to the fundamental things related to the coin you are going to buy. Make sure the coin’s importance is strong enough in the world of financial assets, so that its value will increase over time.

Market Historical Pattern

We can never accurately predict future market conditions. But by knowing the history of the crypto market, traders can find out the patterns of the crypto market and move based on those patterns.

Inning accordance with Yale College economic experts, Yukun Liu and Aleh Tsyvinski, crypto possession returns can be anticipated by certain factors. Return on crypto possessions has reduced direct exposure to traditional possessions such as supplies, moneys, and commodities. In various other words, the habits of crypto possessions is various from traditional possession courses.

The behavior of the crypto asset market is actually more influenced by the prospects for the function of the crypto asset itself along with the future of blockchain technology; as the effect of the value of precious metal ownership on the price of the commodity.

Liu and Tsyvinski’s findings also show how high returns from crypto assets are also accompanied by high risk taking. However, the ratio between return and risk can be said to be at a normal level.

Crypto asset returns can be predicted through two factors: market momentum and investors. First, momentum, which basically means that when the value of an asset increases, it tends to go even higher.

To take advantage of the momentum effect, Liu and Tsyvinski have devised a simple strategy, whereby an investor should buy Bitcoin (or another crypto asset) if its value has increased by more than 20% in the previous week. This strategy yielded tremendous returns in the research.

Second, the factor of investors’ attention to crypto assets. Liu and Tsyvinski started with a question:

If the number of searches for ‘cryptocurrency’ on Google or Twitter is very high, will the returns increase? It was true, the return will increase. They also found that a decrease in investors’ attention to crypto assets—such as a decrease in the number of searches for ‘Bitcoin hack’—will have a negative impact on returns.

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