When Does the Crypto Market Close?
May 2, 2022 |
The cryptocurrency market, unlike the stock exchange, does not close. Crypto markets are open from 12:00 am to 12:00 pm every day of the week, so you can buy, sell, and swap cryptocurrencies 24/7. This attribute is unique to the cryptocurrency market when compared to other asset trading markets. The stock market, for instance, trades from Monday to Friday: pre-opening sessions start at 6:30 am EST, the early trading session runs from 7:00 am to 9:30 am EST, core trading sessions are 9:30 am to 4:00 pm EST, and the late trading session (aka after hours) is 4:00 pm to 8:00 pm EST. The stock market also closes for all national holidays and unlike the crypto market, does not take global time differences into account.
The crypto market benefits from the fact that it never closes: prices can fluctuate during all hours of the day, even on weekends. The fluctuation of prices that take place around the clock provides a greater span of trading opportunities for crypto investors. Regardless of where traders are in the world, they can rely on the crypto market to always be open and available to them. A crypto trader simply does not have to wait on the market to initiate trades.
What Time of Day is Crypto Most Traded?
Cryptocurrencies are most commonly traded between 8:00 am and 4:00 pm in local time. As a rule of thumb, the market tends to see most of its activity take place on weekdays during the times in which the US stock exchange is open.
Strategies for Day Trading Crypto
The method of day trading involves the trade of one or more shares during a given day to earn profits. It is the act of buying and selling an asset (in this case a cryptocurrency) within the same day or even multiple times over the day. This allows the trader to take advantage of small price moves which can be very lucrative. To thrive in day-trading crypto, it is very important to keep your eye on the charts, analytics, and community announcements. Token Metrics provides many of these valuable insights based on AI-driven crypto research.
The strategy of day trading contrasts the popular buy and hold, aka HODL strategy, but it does have certain benefits for traders. It is important to have a well-planned strategy for day trading to succeed in maximizing profits.
Range trading is one popular method for day trading cryptocurrencies. Most crypto market caps are small enough to be manipulated by a single large buyer. If you notice these drastic changes, you can take advantage by tracking the volume throughout the day and buying and selling accordingly. Buy in the oversold zone and sell within the overbought. In other words, when buyers have undersaturated their needs, and a trough in price has developed, this indicates a good time to buy. Conversely, when you feel buyers have oversaturated their needs, and prices are peaking, sell!
Another popular strategy is employing bots to automate your crypto investments. Certain platforms allow traders to customize trading bots to buy low and sell high. Platforms like these use bots to more accurately read the markets and allow traders to break from constantly tracking the statistics themselves. Similarly, scalping allows traders to benefit from small price movements. Many scalpers use bots to accumulate smaller gains by buying and selling a crypto asset within seconds. Scalping tends to necessitate a larger bankroll to benefit to a greater extent.
The final way in which crypto traders can take advantage of day trading is through arbitrage. Arbitrage involves buying a cryptocurrency on one exchange market and selling it on another in which a price discrepancy exists. The fact that the crypto market is unregulated allows for price discrepancies to take place between trading exchange markets. This means a specific cryptocurrency may be selling for more on one market compared to another. It is up to the crypto trader to notice these slight discrepancies and take advantage by buying on the platform in which the coin is listed at a lower price and selling on a different platform in which the coin is listed at a higher price. This is known as trading the spread. A spread is the difference in the buy and sell price of a coin on different platforms.
Traders must take trading fees into account when using any day trading tactic, as trading fees may wipe out gains from multiple transactions.
The cryptocurrency market is non-stop. Crypto traders are not limited to trading hours, like stock or bond traders. There are a multitude of ways in which crypto traders can take advantage of the ever-changing market by implementing day-trading strategies. It is important to understand the volatility and risks that come with trading cryptocurrencies. It is best to take a measured approach when trading and investing in crypto, and do your own research to understand what tactics would provide significant profits and help achieve your investing goals. Happy investing!