Key Takeaways
- Entering the market at the wrong time determines your success or failure rate.
- Consider a time zone that aligns with when there is relatively more market activity.
- There are several factors that can affect the best crypto trading times.
Regarding the best crypto market times, the idea that timing is everything can determine whether you succeed or miss opportunities. Entering the market too early or too late can be the same as failing, even if you have the best tools and trading strategy. Discovering the best time to trade crypto means you could easily succeed even if you made a few other mistakes. This guide explains the best crypto market times!
Unlike the stock market, which has definite opening and closing hours, the cryptocurrency market operates 24/7. A crypto trader can open and close a position at any time of the day or night. Experts believe you can master the best favorable crypto market times for profit-making.
When Does the Crypto Market Close?
The cryptocurrency market operates day and night, every day, including on weekends and public holidays all year round. However, take note that while most cryptocurrency exchanges also run 24/7, there are times when they could close for maintenance, briefly interrupt trading on select pairs, or slow down during high congestion periods. This means brief interruptions could occur if your preferred exchange is down or your trading app isn’t working for one reason or another. Most exchanges are decentralized, meaning they don’t need an intermediary to verify a transaction and can work endlessly without interruptions.
The Best Crypto Market Times and Time Zones
Most crypto traders have learned to strategically navigate the market by aligning their schedules with the U.S. trading hours when the most significant amount of crypto trade happens. This corresponds with a period when you can experience the most critical market activity and trade volumes. While trading at any hour in a 24/7 cryptocurrency market is possible, you must identify the best time to trade crypto and adjust accordingly to tap into increased liquidity and more opportunities.
Choosing the best crypto market times means leveraging the most active and dynamic moments caused by higher trading volumes and better price fluctuations. Such timing gives you a better chance to close a trade at a more favorable price instead of only relying on market movements. You also interact with more individual participants and institutional investors when you take this strategic approach. The result is experiencing tighter spreads, lower chances of slippage, and enhanced efficiency and transparency.
When Most Trading Occurs
Research has shown that while the market stays open 24/7, most crypto trades are executed between 8:00 am and 4:00 pm UTC, while the periods between 12:00 am and 1:00 am are the most volatile. Trading could happen at other times, but it’s relatively lighter and more challenging. Moreover, the period between 8:00 am and 10:00 am UTC on Mondays is less volatile than other days. However, announcements surrounding regulatory issues or celebrity endorsements can cause some price fluctuations.
Consider a Multi-timeframe analysis.
As a beginner looking for the best time to trade crypto, you must avoid getting entangled with the hundreds of indicators, chart patterns, and technical analyses on the cryptocurrency market. Moreover, you could quickly overlook the forest through the trees if you try to determine market trends based on a single time frame. A multi-timeframe analysis is a better way to choose the best crypto market times. This process lets you view the same crypto asset during different time frames. For example, you can use a daily chart to understand your preferred asset’s long-term trend or a shorter hourly chat to choose an appropriate entry and exit point.
Factors that can Affect Crypto Trading Times
Your success as a trader depends on identifying the best time to trade crypto. The following are among the crucial factors that can also influence your trading times:
Volatility: An active trader can easily make profits during increased price fluctuations.
Trade volumes: The greater your trade volumes within a specific period, the greater the liquidity and faster execution of orders.
Overlapping market hours: Consider periods when big crypto markets are active simultaneously for a higher chance of increased liquidity, activity, and trade volumes.
Breaking News and Events: Major announcements and data releases on economic activities often influence price movements.
Availability: Choose when you’re personally available to actively participate in trading and avoid weekends and holidays with less market activity. You could also experiment to discover the best crypto market times that befit your style and goals.
Conclusion
Identifying the best times to trade crypto requires a clear understanding of the cryptocurrency market. While market hours, time zones, trade volumes, and your own goals can optimize your trading activities, avoiding mistakes taking advantage of the best time slots can play to your distinctive advantage.
