If you’re a trader, you’d already know that stock markets have fixed opening and closing hours. You cannot perform trading once the market is closed.
However, that’s not the case with cryptocurrency markets as they’re built differently. They have different ways of conducting transactions and performing other trading functions.
A crypto market uses elements such as smart contracts and blockchains. Unlike stock exchanges and other traditional financial markets, they don’t need to be supervised all the time by humans. Therefore, crypto markets can run 24/7/365.
Are there Any Time Limitations on Crypto Trading Platforms?
Crypto exchanges are very similar to traditional services that help people in trading stocks, and other conventional assets with retail investor accounts. However, there are some key differences that you need to know.
One of the biggest differences between the crypto and traditional global market is the time operating hours. If you’re trading CFDs, stocks, ETFs, and bonds, you’ll only be able to perform transactions during the opening hour of global markets.
Generally, the timing of a traditional financial market is 9:30 am ET to 4:00 PM ET from Monday to Friday. There is also an after-hours trading duration that starts from 4:00 pm ET to 8:00 pm ET.
It’s important to note that there are some exceptions as well, like the Forex (Foreign Exchange) market that operates 24 hours a day.
Unlike trading stocks and other traditional assets, a cryptocurrency market operates 24/7/365. That’s because cryptocurrency isn’t traded on regulated exchanges and there is no single authority that controls crypto assets.
There are centralized and decentralized cryptocurrency exchanges and they only halt their operations for a brief period for maintenance. They announce maintenance schedules publicly before shutting off their operations.
How Does Cryptocurrency Trading Work?
There are different ways to perform crypto trading but the most common one that people use is to open an account on a centralized crypto exchange, such as Coinbase and Binance. These platforms allow buyers and sellers to contact each other and make transactions.
A cryptocurrency exchange simplifies the buying and selling process by providing traders and investors with real-time values of different crypto assets.
What Time of Day Is Best for Crypto Trading?
Although crypto markets remain open all the time, the liquidity levels of crypto assets can vary based on the current time of the day. Therefore, there will be a slight difference for people trying to understand and predict the market movements.
Stock traders usually compare the value and position of a share at the closing time of a trading day. But people dealing with cryptocurrency typically need to assess the market movement by looking at the asset’s value 24 hours ago.
Generally, digital currencies are most commonly traded between 8:00 am to 4:00 pm in local time. Although a crypto trade can be performed at any time of the day, most people execute their trades during the highest activity levels.
As a cryptocurrency trader, you’ll also need to be aware of the current events and news that can affect the entire market. These events usually include endorsements by celebrities, regulation changes, and halving events (when the reward against mining is cut in half).
The price of crypto assets can fluctuate dramatically during and after such events, providing traders with better opportunities to generate profits.
What About Weekends?
The best time to trade cryptocurrency is the one that works for you the best but most professionals and experts tend to be more active in the crypto market during weekends. Usually, Monday, followed by Saturday and Friday, is the day when people experience the highest returns on their investments.
Usually, if a cryptocurrency increases its value on the weekends, most traders expect that it’ll decrease over the entire week. But you must keep in mind that cryptocurrencies are highly volatile and they can change their value dramatically during any day and you can end up earning more profit or losing money rapidly.
It’s almost impossible to guarantee what the future outcomes will be. There are no promises that you will earn big profits during weekends.
Additionally, these days can also change with time. You need to perform your due diligence and use a comprehensive trading strategy to minimize the risks involved and increase the chances of earning more profit.
Advantages and Disadvantages of Crypto Being Always Open to Trade
As there are no definitive hours in the crypto market for trading, it comes with several pros and cons that you need to know.
- It ensures convenience for traders as they can perform trades at any time that suits them the best.
- Due to higher liquidity and a bigger market, the potential for returns is also higher.
- There is no single authority that can define the trading hours for the crypto market and users can perform transactions anonymously.
- Some online platforms and centralized exchanges can limit the access for traders to certain times.
- There can also be higher volatility on certain days, which increases the risk factor.
- Traders can miss golden trading opportunities generated by big market movements because of the lack of regulated market hours.
What Time Does the Crypto Market Open and Close?
The crypto market remains open all the time, 24/7/365. It doesn’t have any opening and closing hours and users can perform trades whenever they want. This nature of the crypto market has many pros and cons that you must understand before starting your cryptocurrency trading journey.
What Time Zone Does Cryptocurrency Use?
The crypto markets run on UTC. Crypto traders are located all around the world and using the standard times makes it easy for them to perform trades. It’s believed that 12:00 am to 1:00 am is the most volatile time for Bitcoin as it’s the start of the working day for Asia and the end of the working day for North America.
The crypto market conducts transactions and other trading functions differently than traditional financial markets. It doesn’t have any closing or opening hours and traders can perform trade whenever it suits them the best.
While it provides great convenience for traders, it has its own pros and cons that you must understand. Keep in mind that cryptocurrencies are highly volatile. They have a bigger potential for returns but they also involve a higher risk of losing money.