Factors that can assure successful and profitable crypto trade
Well, the prime factors would cover coins with strong fundamentals, cryptos that assure promising growth, affordable transaction fees, and so on. Added to these, there is another major factor that can make or break your window for profit in crypto trading- crypto trading hours. Even if you are trading the highest-rated cryptos like BTC, you might not be able to garner a sizable profit if you do not trade the coin at the right crypto trading hours. Visit multibank group
So, what does it mean by the “right” crypto trading hours and why is it so significant?
Crypto trading market
Interestingly, unlike the traditional trading market, the crypto trading market is open 24/7, all through the year. Some exchanges or OTC platforms might choose 5-days operation for traders but the general norm is 24/7/365 trading activity. However, you might find some crypto exchanges to be closed at a certain point of time but that would be most for maintenance activities. Bottom line is, you can trade at just any time on the crypto trading market.
Crypto trading hours
It has been mentioned that you are allowed to trade any time on the crypto market- but you should not. Well, it’s because, when you are trading for profit, you need to find the right crypto trading hours. Two of the fundamental prerequisites for trading are high trade volume as well as high liquidity. These two factors ensure that you will easily get a high price for your crypto and also a long pool of buyers. The same crypto, even if it is the king of crypto, might show a different (read much lower) price if you choose the wrong crypto trading hours. Every crypto goes through phases of low and high liquidity, even if the crypto is boasting a healthy rally. The liquidity and trading volume factors are widely determined by traders’ and whales’ activities across the crypto market.
Best crypto trading hours
The best or right crypto trading hours refer to the time zone when crypto trading can bring you best prices in the present market, large pool of buyers, and highest possible profit. When it comes to crypto, the top crypto trading hours would imply 8 in the morning to 4 in the noon (local time). In the language of the crypto industry, it’s called the “cryptocurrency reset time”. So, if you have to trade, focus your trading activities within the mentioned time slot.
Best days for trading
You should also be careful about the days of the week for best crypto trading experience.
It’s better to avoid weekends if you are looking forward to selling crypto at a great price. According to expert analysis, weekends generally witness serious drops and hence won’t be a compatible time for traders, especially sellers. It’s the same with traditional trading markets as well. However, if you are looking to buy cryptos at a low price, you might try out on the weekends. If you are trying a quick short-term trade, you might buy crypto at a low price during the weekend, say, Friday or Saturday- and then sell it on Monday or Tuesday. It has been observed that weekdays generally show high prices for crypto coins.
The weekends mostly show low volatility. But smart and ambitious traders are not on the lookout of a low volatile market. In fact, high volatility is the major driving force for most of the ambitious traders in the crypto zone today. These are adventurous traders who are waiting to churn out profit from fluctuating price differences in a highly volatile market. Thus, they do not prefer trading from Friday to Sunday. As a result, weekends do not attract high trading volumes as well as high liquidity.
The best day for sellers in the crypto market is, say, Tuesday, as the price starts soaring up from Monday. Thursday is another great day for trading if you are a seller. According to some experts, Saturday could also be a strong time for crypto trading- however, there could be divided opinions about trading on Saturday.
The discussion about crypto trading hours would remain incomplete if we do not mention the clause of geographical difference in trading volume. Put simply, the price of a crypto might vary from one country to another at the same time.
The main reason behind the price difference in global markets is that markets tend to react differently to media and news. For example, a particular news that might affect the American market, might have no significant effect on the German market or some Asian market. Thus, if the particular news plummets the price of BTC or ETH in the USA-based trading zones, it won’t necessarily lead to a drop in ETH/BTC prices in crypto trade markets in other regions.
You have the example of Ripple and South Korea from 2017 December here. In the last quarter of 2017, Ripple traded for around 30 percent more across South Korean crypto trading zones in comparison to the crypto trading scene in America.
How would you know which geographical market would have a higher or lower price? You would need a lower price when you are buying and a higher price when you are selling. Well, there are online time zone converters today for crypto traders. These converters will show you both opening and closing of crypto trading markets from various countries- and that too in the time zone of your current region’s local time.
The discussion about crypto trading hours mentioned above is not based on any hard-and-fast rule. In fact, there is no eternal rule about right or best crypto trading hours. Rather the analysis is mostly based on in-depth observation of the market and statistics gathered over time. So, just because weekends do not show high volatility, it doesn’t imply that you won’t check out the prices on Saturday. Keep the stats and figures in mind as these data have been gathered from historical observations. But, also apply due diligence in finding the most compatible crypto trading hours for your trading goals.