Dynamics and liquidity. What time of day is it better to trade cryptocurrency?


The cryptocurrency market is traded 24 hours a day and 7 days a week. Experts explained how to choose the time for trades and why it is important to take into account surges in traders’ activity

Unlike traditional stock exchanges, the crypto market works without breaks and weekends. This means that trading in digital assets does not stop for a minute. But the dynamics of the market may depend on the time of day, and this should be taken into account when trading.

You need to choose your own time for trading, advised Michael Ross-Johnson, CEO of the cryptocurrency p2p platform Chatex. But the greatest activity of traders is observed in the second half of the day until 21.00-22.00 Moscow time, when the United States and China are actively trading, the expert added.

Dynamics for beginners

Professional market participants usually choose the time of the greatest dynamics of currencies, says Michael Ross-Johnson. But he advises novice traders to trade during periods of less volatility, when the market is dominated by one region or there is a general calm.

From 9.00-10.00 Moscow time, the European trading session begins, from 16.00-17.00 – the American one, and from 2.00-3.00 am – the Asian one, said Andrey Podolyan, CEO of the Cryptorg.Exchange crypto exchange. According to him, the greatest bursts of activity on the market are observed precisely with the onset of the next trading session. The Asian session is characterized by the fact that residents of this region can radically expand the market, says Andrei Podolyan. This can often be seen in the example of the bitcoin rate, he added.

For example, the last bitcoin record at around $ 61.8 thousand, which was recorded on March 13 at 23:00 Moscow time, reflects just such a market reversal. After that, the cryptocurrency began to fall in price and by 19:00 on March 14, its price fell below $ 60 thousand.

Time and liquidity

A trader must learn not only to take into account temporal features, but also to observe who enters the market with what amounts of liquidity, advises the CEO of the cryptocurrency p2p platform Chatex. He also recommends never entering the market during major changes that usually occur at the very beginning of the trading session in the regions, since the dynamics of trading is not yet understood.

“It is better to enter in the middle of the trading day, when it becomes a little calmer and the market movements are already clear,” explained Michael Ross-Johnson.

The expert also advised not to get attached to the market. Good entry points can always be found, no matter what time of day, he said.

Weekends and holidays

As the trading statistics show, the rise in the bitcoin rate most often occurs on weekends, said Maxim Krupyshev, CEO of the crypto payment system Coinspaid. But, according to him, there is a decrease in trading volumes on weekends. The expert claims that the highest activity is usually at night, when Asian traders trade. By the morning, the activity and often the rate of the main cryptocurrency decreases slightly, added Maxim Krupyshev.

The last one happened on April 2. From 00.00 to 06.00 Moscow time, the cost of bitcoin increased by 2% (from $ 58.8 thousand to $ 60 thousand). By 9.00 am the rate fell to $ 59.5 thousand and continued to decline.

“In my opinion, trading is more profitable at night or very early in the morning in Moscow (6 am, for example), when Asia is still actively trading on stock exchanges. The second profitable time period is from morning to afternoon in New York (from 16.00-17.00 Moscow time to 21.00-22.00), ”explained the CEO of Coinspaid.

Separately, Maxim Krupyshev noted holidays such as Chinese New Year. According to his observations, on such days quotes usually grow, so it makes sense to buy in front of them. In 2021, Chinese New Year fell on February 12th. It is noteworthy that two days before the holiday, bitcoin was trading at $ 44.2 thousand, and by February 12 it had grown to $ 48.2 thousand.

Leave a comment