24/7 is the usual trading mode on the cryptocurrency exchange. This is where the niche differs from financial exchanges. It has a special trading specific during the day, and we will talk in the article about how and when to make deals.
Stock exchanges are open on a standard business day. The specifics of trading are built around this fact. Digital assets are not tied to their rules, and sellers and buyers have unlimited access to buy and sell transactions. The time of day determines the dynamics of the market, and it is important to know the nuances of trading here.
The first rule says that each trader chooses a convenient time on his own. This is insisted by Michael Ross-Johnson, CEO of the cryptocurrency p2p platform Chatex. However, the key activity is tied to the time zones of trade in the US and China.
What Beginners Should Know About Dynamics
The Pro’s Choice is the time of greatest currency dynamics, according to Michael Ross-Johnson. Novice market players should try their hand at periods of less volatility, at the same time. These can be periods of full activity of a particular region, or a complete calm of the market.
Trading in Europe starts at about 7-8 am GMT. 7 hours later, activity begins in the United States and North America in general. Another entry point comes 10 hours later when Asia comes into play. According to Andrey Podolyan, CEO of the Cryptorg.Exchange crypto exchange, the cycle of activity begins at the start of each new trading session. Asia gives the strongest trend changes. The Bitcoin exchange rate is the best example. For example, around 9 pm GMT on March 13, Bitcoin reached a historic high of $ 61.8 thousand per 1 BTC, and the next 20 hours fell below $ 60 thousand.
Time and liquidity
A trader must understand two things: the features of time zones described above, as well as the volume of liquidity at the market entering point. A noticeable change is a reason to ignore a market entry. They are typical for the beginning of trading sessions, when the dynamics of trading is extremely unclear.
The middle of the trading day is the best time to participate. Things are calmer, market movements are more predictable, and there are many more reasons for success. It is better not to do the binding to the market entirely. Good entry points are found throughout the day.
Work on weekends and holidays
Weekends are the main growth zone for Bitcoin during the week, according to Maxim Krupyshev, CEO of the crypto payment system Coinspaid. Trading volume is dropping, but the process does not stop. The largest peaks in activity are associated with Asian traders. They are most active around 10 pm to 4 am GMT. But at 7 o’clock in the morning, according to the same time zone, the situation is balanced. The example of April 2 is the most typical. Bitcoin value that day managed to grow by 2% in a few hours, but it took even less time after the end of the Asian activity window for the value of BTC to return to its original level.
This means that 4 am GMT is the best time for trading. 7 pm is the best second moment of the day for work.
Holidays deserve special attention, especially Chinese New Year. These are the zones of growth of quotations. Trader should prepare and buy cryptocurrencies some days before holidays. Keep in mind that Chinese New Year falls on different dates. The last one was on February 12, 2021. On that day, 1 BTC was worth more than 48 thousand dollars, but two days earlier, the value of Bitcoin barely exceeded 44 thousand dollars.