Cryptocurrency has become immensely popular in the last few years. One of the significant factors behind its popularity is that crypto markets are open 24/7, even during public holidays. If you are interested in entering this lucrative world of crypto, it’s important to understand that constant operability doesn’t guarantee round-the-clock profitability.
This prompts the question: what is the best time to trade in the crypto markets?
In this blog, we will delve into the answers to this query and look at the factors that can influence the profitability of cryptocurrency trading at different times.
Crypto trading markets, unlike traditional markets, function through a decentralised network of computers. This unique system ensures continuous operation throughout the year without any closure on a daily or yearly basis.
The only exception is during scheduled maintenance periods, wherein exchanges may be temporarily closed. This exception is communicated in advance to minimise any inconvenience caused by downtime.
Crypto market opening hours: What time does the crypto market open?
Crypto markets have no fixed opening hours. These markets are operational every hour of every day, offering unparalleled accessibility and flexibility.
Let’s take a closer look at the opening hours of the top five cryptocurrencies.
| Cryptocurrency | Global market opening hours |
|---|---|
|
Bitcoin |
24/7
|
|
Ethereum |
24/7
|
|
Tether |
24/7
|
|
Binance Coin |
24/7
|
|
Ripple (XRP)
|
24/7
|
Timing matters: The role of timing in crypto trading
Timing plays an indispensable role in crypto trading. While crypto markets never close, certain periods offer more profitability than others. To identify the most advantageous timeframes, it’s crucial to understand the factors that influence the crypto trading time.
Factors affecting crypto trading time frames
Various factors can affect crypto trading time frames, including market volatility, trading volume, overlapping market hours, time zone differences, and the impact of weekends and holidays.
Let’s delve into each of these factors.
Market volatility
Market volatility exerts a significant influence on crypto trading. When the market experiences high levels of volatility, the price of cryptocurrencies frequently fluctuates. This creates abundant opportunities for traders to make quick profits through short-term trading strategies.
On the other hand, during periods of low volatility, price fluctuations are fewer. This allows traders to analyse the market more deeply, leading to potential gains in long-term trading.
Trading volume
Trading volume refers to the total number of assets traded within a specific window of time in a market. Higher trading volume benefits traders as it increases liquidity and tightens the spreads between buying and selling prices. This ultimately leads to smoother and more efficient trade executions at desired prices.
Overlapping market hours
Overlapping cryptocurrency market hours occur when major crypto exchanges are active at the same time. These overlapping hours create an atmosphere of increased liquidity and heightened trading activity.
Traders who actively participate during these hours often find it profitable, as it presents more favourable conditions for executing trades.
Time zone differences
Time zone differences can significantly affect crypto trading. By studying and understanding the time zones between regions, traders can narrow down the optimal trading timings.
Furthermore, analysing market trends in different time zones can help traders optimise their trading strategies and potentially capitalise on favourable market conditions.
Weekend and holiday effects
Many traders refrain from participating in trading during the weekends and holidays. This leads to a decrease in trading activity and liquidity, which in turn reduces opportunities for making profits.
As a result, weekends and holidays are generally considered less appealing times for engaging in crypto trading.
Economic news and events
Economic news and events can sway market sentiments and impact price movements. Positive updates often attract more trading, making it a lucrative time to trade for crypto trading.
Conversely, negative developments can dampen trading activity, making it a less desirable period for crypto trading.
Individual preferences
Each trader has their unique preferences, risk tolerance, crypto trading strategies, and goals. While some traders may prefer short-term crypto trading, some may engage in long-term crypto trading.
To determine the most suitable trading time frames, traders must experiment and find what works best for them individually.
The best time to trade cryptocurrencies
To maximize your crypto trading potential, consider trading during peak hours, typically from 8 a.m. to 4 p.m UTC. This timeframe sees heightened activity and increased participation. As a result, there are more opportunities to buy or sell crypto and maximise profits. During hours outside of this range, trading volumes tend to decrease, making it more challenging to execute trades swiftly.
To ensure you enter crypto trading with confidence and minimal losses, it’s essential to practice beforehand. You can do this by utilising platforms like TradingLeagues, which provide a secure and realistic simulation environment where you can gain valuable trading experience without any financial risks.
Become a pro trader with the best fantasy trading app : TradingLeagues
- TradingLeagues is the ultimate fantasy trading app designed to give you an immersive trading experience without the risks of losing real money.
- Offers over 100 daily trading games, allowing you to learn and practice crypto trading 24/7.
- With four leagues to choose from–Classic Leagues, Target Leagues, Selection Leagues, and Battle Leagues–you can adapt to different crypto trading styles and strategies.
But what sets TradingLeagues apart is its focus on helping you understand the factors that influence crypto trading time. By immersing yourself in various simulated trading universes at different times, you can gain valuable insights into:
- Market volatility
- Overlapping market hours
- Weekend and holiday effects
- Other critical factors affecting crypto trading
TradingLeagues, the crypto & stock fantasy trading app, is Available as a desktop web app, mobile web app and native Android app, TradingLeagues ensures that you can enjoy a convenient and seamless crypto trading experience across multiple devices. Whether you’re at your desk or on the go, this app is accessible whenever and wherever you need it.
So, don’t waste your time and money on trial and error in the real market. Take advantage of TradingLeagues’ innovative platform to develop your crypto trading skills, make informed decisions, and potentially win big.
The end note
As a beginner, figuring out the best crypto trading time and navigating the factors that affect it can be difficult – but it’s nothing that practice can’t overcome. If you want to hone your crypto trading skills and win handsomely in the real world, start practising at TradingLeagues today!
