Best time frame for crypto trading: Earn Maximum

December, 30th 2023

best time frame for crypto trading

Due to the global and constant nature of cryptocurrency trading, traders face many difficulties, one of which is to find the best time frame for crypto trading. Traders who want to place large-scale buying and selling orders should understand the time when liquidity (the availability of the counterparty to close or enter the trade at a particular time) and the volume of the trade (how many times the coin changes at a particular time) are maximized. It's just as if a grocer selling huge amounts of produce would ideally set up his stall in the most visited market.

Here is the complete guide to the best time frame for crypto trading, the best hours, days, and months for beneficial trading, and factors to consider before starting trade.

When is the best time frame for crypto trading?

Once you know what kind of market situation you want, you can explore trends in the cryptocurrency market and find the best time frame to trade cryptocurrency. Analyzing price data and cryptocurrency market trends shows that certain times are particularly good for traders. Depending on the frequency of transactions, the best time frame for crypto trading is as follows.

Best hours of the day to trade cryptocurrency:

The best time to trade cryptocurrency for a typical trader is when the market is active. This happens between 12:00 p.m. and 8:00 p.m. UTC, which is consistent with typical U.S. working hours. According to the price data, volatility is especially high around 1 p.m. in UTC. However, if the main goal is to reduce fees, it is better to choose a different time zone. Gas and other trading charges shall be at least between 4:00 and 8:00 UTC.

Best week time to trade cryptocurrency:

When looking for the best time frame for crypto trading, it's a good idea to look at the trend for a week. That's why some investment advice recommends selling at the beginning of the week and buying cryptocurrencies at the end of the week. Bitcoin prices increase on Mondays and Tuesdays, while decrease on Thursdays and Fridays.

While most of the significant investment firms do not trade on weekends, it is advantageous to do so during these often overlooked times. If you buy cryptocurrency on the weekend, the gas cost is especially low.

Best month time for cryptocurrency trading:

If you look at the history of Bitcoin prices, you can see that most investors are making big profits at the beginning of the month. Prices may be higher at the end of the month, but overall, prices tend to jump the most at the beginning of the month. For the first 10 days of the month, pay attention to low-priced crypto coins, as the coins of low-priced cryptocurrency are likely to rise sharply.

Best year time to trade cryptocurrency:

Statistically, the largest cryptocurrency revenue tends to occur in spring and autumn. Traders tend to make more money when they buy cryptocurrency between April and May and October and November. On the other hand, the lowest profit is generated in late summer.

On the other hand, the lowest return occurs in late summer. This trend in the cryptocurrency market is generally caused by low trading volume and volatility in the market during many holidays and vacations.

Factors to consider when deciding the best time frame for crypto trading

Since the cryptocurrency market is very complex, there is no set time when it is best to trade cryptocurrency. You should consider your own goals first rather than letting others know when it's best to trade cryptocurrency. The best time frame for crypto trading depends mainly on what you want to achieve. Here are some important factors to consider before choosing the best cryptocurrency trading time.

Gas Fees:

Transaction fees when purchasing cryptocurrencies are different from specific cryptocurrencies. In general, each transaction is imposed from 0.05% to 0.25% of total transactions. If you trade cryptocurrency in the day time and operate at a low-interest rate, your transaction fees may eat up your profits. When gas fees are lowest, it is the best time to trade cryptocurrency for some traders.

Overlapping Market Times:

There are cases where the market time overlaps in several regions where cryptocurrency traders are active. For example, traders from New York and London are both active between 8 a.m. and noon. If you prefer to trade in a time zone with a lot of trading activity, it's a good idea to take advantage of these overlapping times.

Market Volatility:

Market volatility affects the best timing for cryptocurrency trading. The crypto market usually shows the most volatility between Eight a.m. and Four p.m. local time on the main market of coins. Market volatility is suitable for some traders. It offers many opportunities, especially when working with cryptocurrency options. However, beginners may be puzzled by the complexity of market volatility. Therefore, some traders believe that the ideal time to trade cryptocurrencies is when the market is stable.

Economic News & Events:

Current affairs affect the crypto market heavily. Economic disasters can drive down prices, while the news of exciting crypto projects can drive up market prices. Any trading strategy is worth paying attention to the financial news because current affairs can disrupt the market and make popular trading time temporarily meaningless.

Personal Availability:

Remember that the best time frame for crypto trading depends upon your personal availability. If you are busy with work or half asleep, you are more likely to make mistakes. Always consider your options calmly and choose the trading hours you can purchase carefully.

Best Time for Cryptocurrency Day Trade:

Trading requires serious effort as professional traders try to make lasting profits from financial markets. In the area of crypto trading, effectively managing trading costs is crucial to achieving the desired level of revenue. The transaction fees imposed by each broker depend on the specific trading time of the crypto market.

This difference in transaction costs is mainly due to the difference in volatility, liquidity, and trade volume of cryptocurrency assets. The best time to trade cryptocurrency assets in day time is from 8:00 a.m. to 4:00 p.m. local time. Most reputable brokers offer assessments that only popular cryptocurrencies such as Bitcoin, Ripple, Ethereum, and Cardano can trade. It should be noted that even popular cryptocurrencies can shift from an amazing high point to an absurd low point in a very short time. This means that cryptocurrency daily traders should watch a lot of factors before deciding on trading.

The three main factors to watch out for are trading volume, liquidity, and volatility. These three factors always affect the spread that is charged when trading cryptocurrency assets. The best way to get the best spread is to trade cryptocurrency between 8:00 a.m. and 4:00 p.m. local time.

When to Avoid Day Trading in Cryptocurrencies:

It's great to win in a streak at crypto's day trade, but the reality of trading is that losing also happens. Losing a trade is very annoying because the spread is too high, or you don't pay heed to market volatility, liquidity, and trading volume. In day trade cryptocurrencies, many traders leave the market at weekends, and the trading volume is low. This is the wrong time of day to trade in cryptocurrency. Traders who use a swing trade strategy are usually not as affected by a high spread as day traders.

The reason behind is swing traders are trying to get profits from large market movements, while day traders are trying to win from small market movements, and both traders have to pay the same spreads for the same open trade.

FAQs:

When is cryptocurrency trading most active?

Cryptocurrency traders have continued to discuss cryptocurrency at the right time. According to our deep research, the time for cryptocurrency trading is between 3 and 4 p.m. UTC.

Is cryptocurrency suitable for daily trading?

It is generally recommended that effective daily trading be "liquidated cryptocurrencies."

How long does it take to get good at cryptocurrency trading?

Being skilled in cryptocurrency trading requires harmony with knowledge, experience, and training. The schedule for mastering cryptocurrency trading typically requires months to years of practice, research, and analysis to increase understanding of the market.

When is the lowest price of cryptocurrency in a day?

If you consider purchasing bitcoin, note that prices fall in the afternoon.

Will cryptocurrencies drop prices at night?

There are lower prices when the market is less active. Cryptocurrencies can be traded at any time of the day. Markets tend to move more vigorously during normal business hours, early morning and night.

What is the daily deadline in the cryptocurrency market?

Cryptocurrency trading runs 24 hours a year for 365 days. Traders and investors can commit deals at any time because cryptocurrency markets lack closing times.

Conclusion:

To succeed in the dynamic cryptocurrency market, the optimal time zone for cryptocurrency is important. Traders should consider elements such as daily, weekly, monthly, and yearly trends, trade liquidity, and trade volume the most. It is essential to understand gas fees, overlapping market times, market volatility, economic events, and personal allowance times. Daytime traders must intensively trade 8 a.m. to 4 p.m. local time to lower trading costs. Back-to-back is good, but on high-spread weekends, they avoid daytime trading. Ultimately, it contributes greatly to personal goals and transactional times.