“Did you know that the time you choose to buy and sell cryptocurrencies can have a big impact? Of course, most traders know the basics of selling high and buying low. However, when choosing the best time to trade cryptocurrencies There are many other small details to consider when timing. Cryptocurrency market analysis shows that certain times of the day and certain days of the week provide investors with unique advantages.”
Key points:
Unlike the stock market, the cryptocurrency market does not have fixed trading hours. Therefore, you can trade cryptocurrencies 24 hours a day, 365 days a year.
Some factors to consider when deciding the best time to trade cryptocurrency include gas costs, market volatility, economic news and events, and trading style and goals.
Learn about cryptocurrency market times:
Finding the best time to trade cryptocurrencies can be somewhat complicated, as the cryptocurrency market is always open. Unlike the stock market, the cryptocurrency market does not have fixed trading hours. Instead, they have been operating. You can trade cryptocurrencies 24 hours a day, 365 days a year.
This has resulted in some unusual market trends. Rather than seeing large volumes of trading at the open and close, cryptocurrency market activity is more stable. People trade cryptocurrencies throughout the day, rather than concentrating their trading activity on a few specific times. Furthermore, cryptocurrency is an international currency and therefore operates in all time zones. Cryptocurrency trading hours tend to be more variable than stock market trading hours.
Factors to Consider When Deciding the Best Time to Trade Cryptocurrencies
Because the cryptocurrency market is so complex, there is no single best time to trade. You need to stop and think about your goals first rather than just letting someone else tell you the best time to trade cryptocurrency. The best time to trade cryptocurrencies will vary greatly depending on what you hope to achieve. Here are some important factors you need to consider before choosing the best time to trade cryptocurrencies.
Gasoline fee (gas fee)
Depending on the cryptocurrency you purchase and the cryptocurrency exchange you use, you can expect to pay 0.05% to 0.25% of the total volume per trade. If you day trade cryptocurrencies and your profits are slim, trading fees can eat into your profits. For some traders, the best time to trade cryptocurrencies is when gas fees are lowest.
market fluctuations
Market volatility is another factor that determines the best time to trade cryptocurrencies. According to statistics, the cryptocurrency market is most volatile between 8 pm and 12 am, the largest market time for cryptocurrencies. For some traders, market volatility is a good thing. It offers a lot of opportunities, especially if you use cryptocurrency options. However, market volatility can be confusing for beginners, so some traders may find that the best time to trade cryptocurrencies is when the market is more stable.
Economic News and Events
The cryptocurrency market is heavily influenced by current news. Economic disasters can cause prices to plummet, while news of exciting cryptocurrency projects can cause market prices to surge. No matter what your trading strategy is, it's worth paying attention to economic news as current events can disrupt the market and temporarily render popular trading hours useless.
Trading style and goals
Your trading style affects the best times for you to trade cryptocurrencies. A person who makes hundreds of trades every day while hoping to take advantage of small fluctuations in price has a very different strategy than someone who buys a promising cryptocurrency and holds it for months in the hope that its market price will rise significantly.
personal discipline
Don’t forget that the best time to trade cryptocurrencies also depends on your personal schedule. If you try to trade while half asleep or busy at work, you are more likely to make a mistake. Always make sure you choose a trading time when you can calmly consider your options and make a thoughtful purchase.
technical analysis
Many cryptocurrency markets follow patterns. If you carefully analyze pricing history, you can see certain recurring market trends, such as a bullish bias within each four-hour period.
Using these types of trading tools often requires a focused approach and the ability to navigate large amounts of software and data. However, if you prefer a research-driven trading strategy, following technical analysis patterns can be a great way to choose the best times for you to trade cryptocurrencies.
time zone difference
It is also important to observe cryptocurrency market trends in other time zones. The United States, Japan, and South Korea have the highest volume of cryptocurrency trading, so you can find some unique opportunities if you're outside of these time zones. Some traders like to develop strategies that focus on the fact that they trade while most investors are sleeping.
How to time the cryptocurrency market
There are so many different market timing strategies that you need to approach this concept thoughtfully. Follow the tips below to ensure you find the best time to trade cryptocurrency that suits your specific needs.
See how your local time corresponds to New York trading hours.
Consider whether you plan to trade in large volumes that require a highly liquid market.
Calculate how much changes in trading fees will affect your profits.
Consider whether volatility or market manipulation could affect your trading strategy.
Decide if you can identify cryptocurrency trading news.
Plan how often you want to sell and buy cryptocurrencies.
See whether high trading volume or low trading volume is more useful for your investment strategy.
Analyze your risk tolerance and decide whether you want to avoid periods of volatility.
When is the best time to trade cryptocurrencies?
Once you understand the types of market conditions you are looking for, you can easily start observing cryptocurrency market trends and find the best times to trade cryptocurrencies. Analysis of pricing data and cryptocurrency market trends shows that certain periods are particularly favorable for traders. Depending on how often you want to trade, here are the best times to trade cryptocurrencies.
Best time of day to trade cryptocurrencies
For the typical trader, the best time to trade cryptocurrencies is when there is ample market activity. This time occurs between 8 pm and 12 noon (UTC+8) time, which is consistent with typical working days in the United States. Pricing data shows that volatility is particularly high around 8pm (UTC+8).
Best time of the week to trade cryptocurrencies
When looking for the best time to trade cryptocurrencies, it’s also worth paying attention to trends throughout the week. Bitcoin prices tend to be highest on Mondays and Tuesdays, while Thursdays and Fridays are especially low. Therefore, some investment advice advises you to sell at the beginning of the week and buy cryptocurrencies at the end of the week.
Although most large investment firms do not trade on weekends, there may be some advantages to trading during this often-overlooked time. Gas fees are especially low if you choose to buy cryptocurrencies on the weekends.
Best time to trade cryptocurrencies this month
Bitcoin price history shows that most investors make larger profits at the beginning of the month. Although prices may be higher at the end of the month, the largest overall price increases tend to occur at the beginning of the month. During the first ten days of each month, keep an eye out for low-priced cryptocurrencies, as the price of their tokens can rise significantly.
Best time of year to trade cryptocurrencies
Statistically, the biggest crypto gains tend to occur in the spring and fall. Traders tend to make more profits if they buy cryptocurrencies during October-November and April-May. Meanwhile, the least profitable time occurs in late summer. These cryptocurrency market trends typically occur because the market’s trading volume and volatility levels are typically lower during periods when there are more holidays, school breaks, and vacations.
Note: All content represents the author’s personal views only and is not investment advice, nor should it be construed in any way as tax, accounting, legal, business, financial or regulatory advice. Before making any investment decision, you should seek independent legal and financial advice, including advice on tax consequences
Organization: KeplerResearch
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