Best Day of Week to Buy Cryptocurrencies

Buy low sell high? No problem! If you know which day is the best day to buy cryptocurrencies.

Regular Market vs. Cryptocurrency Market

The stock and bond trading is full of algorithms and bots. Those computer programs don´t have any feelings. The cryptocurrency market is a bit different. Most of the traders don´t use any algorithms. The reason is not because they don´t understand it (honestly, there are more nerds in the cryptocurrency market than anywhere else). It is rather because they don´t have institutional software like investment managers in a bank.

Psychological Factors

What can we learn from that about the cryptocurrency market? Psychological factors have a much greater influence in this (compared to the stock market) very small niche.

One of the psychological factors that effect returns might be the day of week.
Let´s face it: Most people´s shopping behaviour varies. While many are miserly on monday, they spend a lot of money on their saturday shopping sessions. That´s logic, becuase they have more time for “funny” things on saturday.

But what about investment decisions? Is there a day where people are more likely to make decisions and finally make their investments?

Results

We analyzed the historical prices of the most famous coins as well as the performance of the Cryptocurrency Index CRIX.
CRIX = CRyptocurrency IndeX, that represents the performance of the whole crypto market.

This table shows the average daily returns of certain cryptocurrencies and the CRIX for each weekday.
We looked at up to 150 prices per coin per weekday. As you can see there is a clear result. While the performance of the overall market (CRIX) is -0,02% on Wednesdays it is much better on Thursdays (+0,59%). The returns of BTC, ETH, XRP, LTC and DASH show a similar behaviour. The average daily return is positive and above average for each single coin. The performance for Wednesday is exactly the opposite.

Conclusion

We analyzed daily “close”-prices. So on Thursday morning the prices are likely to be lower than in the evening (and vice versa for Wednesday).
So if you want to invest in Cryptocurrencies, maybe you should think about waiting until Wednesday night or Thursday morning. Then the price is more likely to go up than on any other weekday.

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