The Best Crypto Market Times According to Experts
by Tom Nyarunda
Unlike stock markets that are primarily open five days a week, cryptocurrency is open 24/7, meaning you can open and close positions at any time, including weekends. However, experts believe some days and times are most favorable for making trades. Based on professional traders' views, this article explains the best crypto market times and days.
Does the crypto market ever close?
Crypto markets never close; they operate day and night, every day, offering trading opportunities to investors throughout the year, unlike the stock market, which is open Monday to Friday and has rigid trading hours.
Nonetheless, while the crypto markets remain open, cryptocurrency exchanges could close. Crypto exchanges operate 24/7, but may close during maintenance or high congestion periods when they briefly pause trading on particular pairings.
Therefore, the only period crypto market times could be interrupted would be when your preferred crypto exchange is down, or their app isn't working for any reason.
The crypto market doesn't close during weekends or holidays. Since they are decentralized platforms, exchanges don't depend on central intermediaries to verify transactions, meaning they can work continually without interruptions.
Understanding crypto market times and time zones
A significant amount of crypto trading happens during US trading hours. As a result, most traders navigating the global cryptocurrency market strategically align their trading schedules to correspond with this period when there's increased activity and volumes.
While it's possible to conduct trades at any time in the 24/7 crypto market, identifying prime times when there's increased market activity and adjusting accordingly can help you tap into more trading opportunities and increased liquidity.
Choosing crypto market times when there are the most active and dynamic movements due to higher trading volumes and bigger price fluctuations offers investors better opportunities to close trades at desired prices besides capitalizing on market movements.
Moreover, traders taking this strategic approach interact with a broader pool of market participants, institutional investors, and players from significant crypto markets. You should be able to experience tighter spreads, increased market transparency, improved overall market efficiency, and lower chances of slippage.
At what time does most crypto trading occur?
Most cryptocurrency trading commonly occurs between 8am and 4pm UTC. While the markets remain open 24/7, most trades are executed during this period. There may still be activity outside of this timing, but it will be lighter, and you could find it more challenging to open and close trades.
Most importantly, you want to remain keen to catch news and events that could impact the market positively. Announcements about regulatory changes, halving events, or celebrity endorsements have all been known to cause price fluctuations. Also, according to research, 12am to 1am is considered a relatively volatile time to trade cryptocurrency. In comparison, 8am to 10am UTC on Mondays has always been less volatile than other days.
Some traders rely on technical analysis of the crypto market. Still, beginners can easily get lost in the weeds of hundreds of chart patterns and indicators when looking for the best crypto market times.
Also, a common problem is that investors concentrate on a single timeframe to determine trends and specific entry and exit points, meaning they risk missing noticing the forest through the trees.
A better option is choosing multi-timeframe analysis to identify trends and trading opportunities and determine the best crypto market times. The process involves viewing the same cryptocurrency using different time frames.
For example, if you are a swing trader, you can use a daily chart to determine an asset's long-time trend and a shorter four-hour chart to select specific entry and exit points.
While using as many timeframes to determine the best trading hours as possible, you’re better off sticking to two to minimize the complexities involved and perhaps adding a third one when you’re fully accustomed to using the strategy.
Factors affecting trading times
When it comes to crypto trading, carefully choosing the most favorable times will significantly impact your success.
Numerous factors can influence your trading times besides determining the best periods for trading. Among the crucial factors to consider are the following:
Market volatility: Periods of increased price fluctuations can offer more significant opportunities for making profits for active traders.
Trading volume: The more assets traded within a specific period, the greater the liquidity, tighter spreads, and faster execution of trades.
Overlapping market hours: Periods when several major cryptocurrency markets are active simultaneously tend to provide increased activity, trade volumes, and liquidity.
Economic news and events: Announcements involving economic events and data releases can influence price movements and market sentiments.
Personal availability: Choose times aligning with individual availability when you can actively monitor market trends.
Weekends and holidays: Most active traders avoid weekends and holidays, meaning they impact trading activity.
Individual preferences: Experiment to identify the best time frames befitting your trading goals and style.
Successfully navigating cryptocurrency trading requires understanding the best crypto market times. This involves factors like time zones, market hours, trading volumes, and personal trading goals to optimize trading activities.
While the crypto market runs 24/7, particular time slots bring distinctive advantages.
Tom is a freelance writer with over 15-years’ experience in content creation, blog writing, and SEO specializing in the blockchain and cryptocurrency niche. He is a philosophical figurehead who believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.