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When is the best time to trade cryptocurrency?
The best time to trade cryptocurrency depends on several factors and can have a significant impact on your trading strategy. One of the main characteristics of the cryptocurrency market is its instantaneous volatility. This makes buying and selling these currencies an ideal playground for day trading and short-term profits.
Introduction
However, novice and inexperienced traders may have difficulty identifying the best time to trade in the cryptocurrency market, and in this article, we aim to help them find the pulse of the market more easily.
How do the working hours of different financial markets differ?
The working hours of global financial markets vary mainly according to the type of activity they carry out. For example, the Forex market is a decentralized market and therefore operates 24 hours a day. The activity of this financial market is divided into four main time slots, which include Sydney, Tokyo, London and New York. The working hours of the crude oil market and the gold and silver market also depend on the working hours of the London and New York stock exchanges.
When is the best time to trade cryptocurrency?
One of the most important advantages of trading cryptocurrencies is that they are not limited by time. As a result, you can buy and sell them at any hour of the day. However, it can be said that the level of market activity is not the same throughout the day. So, in any case, there are some time periods in which you can enrich the profits from transactions by buying and selling in them.
Various factors influence the best time to trade cryptocurrencies. Liquidity is one of these important factors. Since traditional financial institutions and banks are closed on weekends and public holidays, trading volume in the cryptocurrency market usually decreases on these days. In addition, current market sentiment can also have a significant impact on trading volume and the number of active people. The influence of famous people such as Donald Trump, Elon Musk, etc. should also be considered because even their statements can shake the cryptocurrency market.
When are most cryptocurrency transactions done?
The activity of all traders during certain time periods increases liquidity and increases trading volume. As a result, more opportunities will be available to investors to buy and sell cryptocurrencies. For example, during the hours when the New York Forex market overlaps with the London market, volatility and liquidity reach their peak.
The best time to sell cryptocurrency
Ultimately, the best time to trade cryptocurrencies, taking all of the above factors into account, is between 3:00 PM and 4:00 PM UTC (Universal Standard Time). This is when crypto trading volume increases significantly and the cryptocurrency market interacts and overlaps with the other major financial markets mentioned above.
The best time to trade in the cryptocurrency market
So far, we have examined what factors affect the best time to trade digital currencies and currency fluctuations. Now, it must be said that the best time to trade in the cryptocurrency market also depends on liquidity, trading volume, and volatility. If you are planning to trade short-term volatility for day trading, the best time is between 4:30 PM and 8:30 PM Tehran time. This time overlaps with the peak activity of the London and New York stock markets.
Opening and closing hours of global markets
Some global markets have a big impact on the best time to trade cryptocurrencies and the cryptocurrency market in general. In the table below, we examine the operating hours of three of the world’s largest stock markets and how they overlap with the cryptocurrency market.
|
Stock market |
Start time |
End of work time |
The busiest hour |
|
New York |
2:30 PM (UTC) |
9 pm (UTC) |
2:30 to 5 PM (UTC) |
|
London |
8 am (UTC) |
4:30 PM (UTC) |
9 to 11 am (UTC) |
|
Tokyo |
12 midnight (UTC) |
6 am (UTC) |
12 to 2 am (UTC) |
A large portion of cryptocurrency trading takes place during the time frames listed in the table above. In addition to stock exchanges in different countries, the working hours of other financial markets (commodities, forex, etc.) can also overlap with cryptocurrency trading and affect trading.
The best time to buy cryptocurrency
It is interesting to know that many investors in the cryptocurrency trading market buy and sell at the same hours that the New York Stock Exchange is open. In fact, according to experts, based on the studies conducted, the best time to buy cryptocurrency is early in the morning and before the New York Stock Exchange opens. Because as the day goes by, the time for cryptocurrency to rise has come and their prices go higher. Of course, do not forget that the price changes in different currencies are different from each other. So by monitoring the fluctuations of each currency, you can identify the right time for daily buying and selling of each of them.
For medium-term volatility, it is best to act in one of the following time frames:
– Sunday night to Monday morning: Early in the week, a good opportunity to open or close new trades arises due to the opening of a price gap.
– Wednesday and Thursday: Trading volume reaches its highest level on these two days.
– Saturday and Sunday (weekend): These two days are a good opportunity for price correction because volatility and liquidity decrease on them.
Another good way to gauge volatility in the cryptocurrency market is to look at the behavior of the best cryptocurrency for day trading , Bitcoin. Bitcoin is considered an indicator of the crypto market due to the fact that it has the highest trading volume in the market.
Summary
We have examined the best time to trade cryptocurrencies in this article. Some factors such as celebrity statements, legal changes, working hours of major financial markets, etc. all have a great impact on the fluctuations of the cryptocurrency market. In order to make the most of market changes, it is necessary to be aware of all these factors and monitor the news in the crypto sector well.
Final conclusion
We have dedicated this article from Farhad Moghadam Salimi’s Crypto School to identifying the best time to trade cryptocurrencies. Don’t forget that ultimately, operating in this market requires vigilance and continuous education so that you can get the most out of your efforts as a trader. Even if you choose the best cryptocurrency to invest in but don’t have enough knowledge to trade, you will have a hard time finding your way to success on this path.
