How to Determine the Best Time to Trade Crypto

How to Determine the Best Time to Trade Crypto?

(Last Updated On: June 3, 2023)

How to Determine the Best Time to Trade Crypto? The market operates 24/7 in cryptocurrency trading, providing traders with numerous opportunities, including various traded pairs such as BTC/USDT or USDT/EUR and hundreds of other variations.

Many traders are now interested in cryptocurrency trading because they see it as a profitable opportunity in a decentralized and dynamic market.

To be successful in trading, it’s important to time your trades well and manage risks effectively.

This involves understanding market volatility, doing thorough research, and considering various factors. By doing so, traders can determine the optimal time to trade cryptocurrencies.

Cryptocurrency Trading Hours 

When the prices of cryptocurrencies change a lot, it can affect trading. People may trade more to make money from these changes, especially when important things happen.

This can cause more trades to happen and make it easier to buy or sell cryptos at these times.

During cryptocurrency trading hours, exchanges or platforms may enact certain measures or restrictions to cope with the heightened demand and risks.

Such precautions may include temporary trading halts, heightened margin requirements, or circuit breakers to curb extreme price fluctuations.

These measures are in place to ensure market stability and shield traders from undue risks during times of heightened volatility.

Can You Trade Crypto 24/7?

Trading hours may vary between exchanges based on location and their markets.

Certain businesses are open 24/7 like WhiteBIT enabling traders to participate at any time, while others have restricted trading hours that coincide with particular time zones or regulatory standards.

Time Zones and Market Activity

The cryptocurrency market follows three main trading sessions:

  • The Asian session is when major crypto exchanges in countries such as Japan, South Korea, and Singapore are active. This session can influence how the day goes since it happens simultaneously with the opening of traditional financial markets in Asia. People interested in Asian cryptocurrencies or want to trade early on might consider paying attention to this session.
  • During the European session, major financial hubs like London, Frankfurt, and Zurich participate, increasing trading activity and liquidity. The overlap with the Asian session often results in significant price movements.
  • The North American session is a highly active trading time that includes the participation of exchanges in the United States and Canada, particularly in New York and Toronto. It is known for its high trading volumes and increased volatility, and numerous important news releases and market-moving events occur during this session.

When the European and North American sessions overlap, there is usually more trading activity and price volatility. If you are a trader who wants to take advantage of these market conditions, this could be a good time for you to trade.