When Is The Best Time To Invest In A New Cryptocurrency?

By | April 13, 2022

Crypto is a very real thing, and it’s growing more popular each day.  Whether it’s an article you found browsing the internet, something on your social media, or your cryptocurrency-enthusiast friend who won’t stop talking about it, it seems like wherever you look lately, there’ll always be something related to crypto.

People from all corners of the world are becoming more invested in this ever-growing industry. Since its conception with the introduction of Bitcoin in 2009, cryptocurrency has become a multi-billion-dollar global sensation. 

Prices in the crypto market constantly fluctuate. What’s worth a fortune today could be worth dust tomorrow, and what’s worth barely anything today could be worth hundreds or even thousands of dollars after some time. 

With all the craze going about, you might be asking yourself when is the best time for you to be investing in new crypto coins. Fortunately, you’ve now got this article. Keep reading for a comprehensive look at the important things you need to understand before you decide to invest in a new cryptocurrency.

Consider Why You’re Investing

In the context of this article, the term ‘new’ will refer to any cryptocurrency that would be new to your investment profile. Pretend you’re considering investing in Solana for the first time.

There’s a lot you need to consider when looking for a new cryptocurrency to invest in. Why you’re investing, how long the coin has been on the market, what you’re hoping to achieve by investing in this currency, and whether it’s a good investment for you are some of the main things to think about.

As an example, if you’re considering staking your coins, they’ll be inaccessible to you for a while. While doing so can earn you passive income on your investment, you won’t be able to move those assets until your lock-up period is over. As such, it’s a good idea to time your initial investment into the coin. That way, you can increase the likelihood of your coins appreciating in value while they’re being staked. Click here if you’d like more information about crypto staking.

So, timing your investment can have a large impact on whether you meet your investing goals. The example above gives a good view of long-term investing, where your assets appreciate over weeks, months, and years. However, your optimal timing might be different if you’re day trading crypto.

Watch The Trends Closely

Cryptocurrency is still relatively new in the greater scheme of things. As such, the market can be rather volatile. You can win big by investing, but you can also lose everything if you’re not careful.

It’s important to consistently follow the market trends. Price hikes and drops are common across the board. Consistently following the trends of the coins you’re interested in will help you understand how they perform.

The biggest mistake many beginners make is buying into a new cryptocurrency when the price is high, thinking that it’s going to rise higher. This is a formula for getting the lowest return on your investment. This works similarly whether you’re into coins or tokens. If you’re into Solana tokens, you’d follow the Solana dex charts or a similar reference site to understand more about that particular cryptocurrency, instead of investing blindly.

The goal is to maximize your return by buying when the market is at the bottom of a downward trend. In other words, you should time your investments so that you buy in for cheap, right before the price rises again.

Always Read The Whitepaper

The whitepaper is one of the first places to turn to whenever you’re thinking about investing in a new cryptocurrency. Every coin worth your investment should have a whitepaper. It’s like a cryptocurrency’s blueprint, and it’s usually found on the main website of each respective digital currency.

As you might guess, a whitepaper contains all sorts of helpful information for an investor. This document should provide a solid description of the project’s goal and how the team plans to realize it. By the end, you’ll have an understanding of what problem the cryptocurrency is intended to solve, the team’s strategy, and a good view of their prospective timeline. 

Building a habit of reading the whitepaper is a true asset for crypto investors. As you read more and watch how each project unfolds, you build experience. As this experience accumulates, you’ll learn to make more educated decisions about your crypto investments by reading the whitepapers of projects you’re interested in.

Follow The Social Media Pages

Social media is a treasure chest of information about a crypto project. Official social media pages of the project and team members are a must-follow if you want regular information on how it’s progressing. 

Furthermore, the success or failure of a cryptocurrency is somewhat dependent on the community following it. If the following behind a cryptocurrency is growing, there’s a decent chance that the project will be successful. On the flip side, an unhealthy or declining community can damage the reputation and success of the project.

It’s in your best interest to pay attention to forums, posts, and comments concerning your prospective investments. Spending time with these platforms will open you up to new views and opinions from other investors. You’ll also have the opportunity to see new perspectives and learn new strategies from more experienced individuals. 

The optimal time to invest is usually when the price is low and about to rise. Naturally, there’s no certain way to predict the future. But if you’re trying to find the best time to invest in a coin, exposing yourself to the community surrounding cryptocurrency can help by informing your decisions. 

Don’t Let Fear Of Missing Out Drive Your Investments

The best time for someone else to invest may not be the best time for you to invest. While social media can be a great asset, avoid investing in a new coin just because a popular investor is doing so. 

While this might seem like a great idea, it can do more harm than good if you’re getting into new projects when your crypto wallet or budget doesn’t allow it. Remember: An investment is only smart when it’s an investment you can afford.

Takeaway

Cryptos are always changing, and it’s impossible to know for sure what will happen next. There are so many factors that contribute to finding the best time to invest in a new cryptocurrency. There’s never a standalone window that would be the best time for every investor. Instead, the best time to invest is a combination of your goals, the state of the market, how you expect it to trend, and how much you can afford to invest. Take your time, study the charts, interact with experienced individuals, and you’ll surely find a time that you consider the best to invest. Good luck!

Category: Crypto

About Safdarali Rizvi

Safdarali Rizvi the management graduate. Has been an avid book reader all his life so naturally loves playing with his words. His curiosity for discovering futuristic opportunities lead him to explore the world of cryptocurrencies. He has a real passion for calisthenics and sports. His management abilities and hunger for learning brings tremendous value to our team.

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