Why you should not trade on weekend?
Trading cryptocurrencies on weekends can be riskier for several reasons:
1. **Lower Liquidity**: Trading volumes tend to be lower on weekends, leading to wider spreads between bid and ask prices. This can result in slippage, where the executed price differs from the expected price.
2. **Volatility**: While cryptocurrencies are known for their volatility at any time, weekends can see exaggerated price swings due to lower trading activity. This can lead to unexpected losses if the market moves against your position.
3. **Limited Support**: If you encounter any issues or need assistance from your exchange or wallet provider, the support team might be less responsive or unavailable during weekends.
4. **Market Gaps**: Cryptocurrency markets don't close like traditional stock markets, but there can still be significant price gaps between the closing price on Friday and the opening price on Monday. These gaps can expose traders to additional risks.
5. **Manipulation**: With fewer traders participating during weekends, the market can be more susceptible to manipulation by large players or whales.
While some traders may still choose to trade cryptocurrencies on weekends, it's essential to be aware of these risks and exercise caution.