Forex

Best Trading Hours for Cryptocurrency

Best Trading Hours for Cryptocurrency.

Ever wondered when is the best time of day to trade cryptocurrency? I know I have. Crypto trading is a 24/7 market. So whether you are trading Bitcoin or one of the other 2,500+ cryptocurrencies, prices fluctuate a lot.

Bitcoin era is a great resource that traders use to carry out market analysis in real-time. With this platform, you will never miss out on any opportunity to earn profits from the cryptocurrency market. Furthermore, crypto traders need all the help they can get to figure out the best time to trade.

But is there such thing as the best time to trade cryptocurrency?

And could it save you money and maximize your trading profits?

I know it’s a lot of unanswered questions, that’s why we have compiled everything you need to know about the best trading hours for cryptocurrency in this guide.

Why Find the Best Trading Hours for Trade Cryptocurrency?

what is the benefit in finding the best trading hours for cryptocurrency? After all, you can trade cryptocurrency anytime you want. Whether you trade crypto at midnight or midday, it all comes down to optimization.

Not all trading times were created equal. If you can optimize when to trade cryptocurrency, you will be better off in the long run. Even if you make a mere 5% extra by trading at the best time, you will reap the rewards in compound interest.

Here’s 3 Reasons.

Optimal Prices

Cryptocurrency prices often vary by up to 50% per day, which is not an overstatement. So, it is prudent to trade at the best price points, otherwise you’d just be wasting money on inflated trades.

Easier Trades

Not all cryptocurrencies have the same trading demand. Of course, with the juggernauts which is Bitcoin and Ethereum, you are not going to have a problem. But other cryptocurrencies outside of the top 100 coins will. And trying to trade in at the wrong time, will just get you a bad price or you won’t be able to trade your desired amount.

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So finding the right time of day will make trading cryptocurrency much easier.

Maximize Your Profits

If you know when to predict the rise and fall of crypto prices you will be able to maximize your profits. Profits tend to add up over time when you make the right trades. If you know prices are typically 20% higher at 12AM, you also know that’s a great time to sell. So, finding the optimal cryptocurrency trading time gives you peace of mind.

The Best Trading Hours for Cryptocurrency

First, if you are going to trade cryptocurrency then you want prices to be low. As the saying goes: “Buy low, sell high.” There is a pattern in cryptocurrency price fluctuations? Let’s take a look

Identify When Demand is High

To identify the hour where the price of cryptocurrency is consistently high, it warrants a look into the cryptocurrency data history. In theory, the best time of the day to trade cryptocurrency is between 8am to 4pm

According to technical analysis, “the price of cryptocurrencies are significantly high after 8am” and “the price really rise around 2pm and 10pm”.

Note that, this is just a working theory that can be disproved at any time, but so far so good, it has been a consistent pattern over the last few years.

Another strategy experienced traders use to take advantage of the crypto market is to trade around the American trading session because of the high price volatility that occurs at the start of New York stock market trading time, which is about 2.30 pm local time.

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Why is this the Optimal Time to trade?

As we stated before, if you are a trader of cryptocurrency then you want the best price possible. And the best price in the day comes at around 8am-2pm and 7pm-10pm. However, you should do your own research, remember prices can go down as well as up and never invest more money than you can afford to lose.  

Key Variables

Every year there are variations in crypto market conditions between:

  • A bull market or a bear market
  • The number of traders
  • The cryptocurrencies available to trade
  • News and updates released to the market
  • The type of exchange being used to trade

Irrespective of what happens, the price fluctuation follows a similar pattern.

And despite Bitcoin’s significant increase in value over the past few years, its price fluctuations stay the same.

Factors That Impact the Best Trading Hours for Cryptocurrency

So, what impacts the best trading hours for cryptocurrency?

Supply vs Demand

It goes without saying that cryptocurrency prices are based on supply vs demand: And crypto tokens are only worth as much as someone’s willing to pay for them. So, prices are volatile when there’s the high demand on the market.

International Traders

Cryptocurrency trading is a global market. There are traders across the US, China, Canada and Europe. But they are all based in different timezones. This is one of the biggest influencing factors on the best time to trade crypto.

To explain further:

  • 9am-5pm Eastern Standard Time: Trades will be highest in US
  • 9am-5pm CST (China Standard Time): Trades will be highest in China
  • 9am-5pm (KST) Korea Standard Time: Trades highest in Korea
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You get the point.

Day of the Week

Demand for cryptocurrency is often lower at the weekends. That means prices are typically lower too – because it correlates with demand. So buying cryptocurrency at the weekend could be a better alternative.

Market News

If you know there’s a big announcement coming up, the market will be volatile. 

For Instance:

Let’s say the US Government are about to discuss cryptocurrency regulations in Congress. And just the slightest bit of positive or negative news could affect the prices.

Cryptocurrency Location

If you’re trading a cryptocurrency that’s based in a particular location, it’s price is more likely to be affected by the local timezone

Okay, so is the above conclusion for the best trading hours for cryptocurrency accurate? Probably not a 100% and here’s why:

Unpredictable

Cryptocurrency is notoriously unpredictable. Price fluctuations are not surprising in the market and should be expected. There are so many variables involved that you can’t figure out what’s going to happen next.

Bull vs Bear Market 

When the market’s down, no one wants to discuss crypto. The truth is, even if you trade at the perfect time, you can still lose money. So sometimes there is no right or wrong time to trade cryptocurrency.

Long-Term HODL

If you’re trading long-term, the time you buy cryptocurrency doesn’t really matter. In the long run, short term prices don’t have much of an impact. And if you’re holding, you’re looking for those long-term gains. So, it wouldn’t matter if you traded at 12AM or 12PM. It becomes irrelevant after a set period of time.

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