Crypto trading came into the trading market and disrupted a lot of marketing strategy. This is because of the ease of accessibility, as well as the fact that trading is going on every minute of the day, all week long.
The fluctuations and market volatility makes it difficult to be able to; most times, predict the market. This means that just when you think a particular cryptocurrency is running a bullish course, the change might occur, and a bearish run will be in play and also last for a long time.
Further discussions on the importance of picking the best time to trade as well as the feasibility of selecting the best trading time are in the next section of this article.
Why You Need to Find the Best Time of the Day to Trade
Personal Strategy Implementation
Buying and selling in the crypto industry are somewhat personal. This means that as a trader, you will need to do your comprehensive analysis of the market, based on the trends and the news about a particular cryptocurrency. Identifying a trading time will help you to implement the right strategy towards winning.
The goal of any traders is to make gains while trading in the crypto industry. This does not matter whether you are buying for a short period or holding the currency for a longer time. However, if you can master the best trading time, then you will be able to stick to a trading strategy that will work for you and help you make a gain in the long run.
There are beginners, enthusiasts, and experts in the crypto trading industry. However, everyone’s goal is to keep getting better at being able to pick the right signals, hence making more gains. In the cause of analyzing the market to pick the best trading time, you will learn a lot of personal tips as a trader, and this will help improve market comprehension, eventually causing you to make gain while trading.
Factors That Determine the Best Time of the Day to Trade Crypto
Supply and Demand
The crypto market is built on the supply and demand strategy. This means that the higher the demand for a particular cryptocurrency, the higher the price and vice versa. When the price of cryptocurrency is high, everyone wants to sell, but when the market is becoming bearish, traders want to buy cryptocurrency.
An in-depth understanding of this marketing strategy can help pick the best time of the day to trade cryptocurrency. Although identifying the bullish and bearish period can sometimes be difficult because of some of the other factors that will be discussed further in this text.
Nonetheless, it is essential to mention that the market volume is usually lower during the weekend, hence most traders make use of this opportunity to buy crypto since the price will also be low at this period. Again, this is not absolute, as there might be a skew in the trading pattern, even during the weekend, because of the volatility and high level of market unpredictability.
We briefly mentioned this point in the previous explanation, but it is essential to buttress it more. The news about a particular coin can go a long way in affecting the market. For instance, if a leading government, such as the US, makes a declaration that favors bitcoin, you will see a lot of bullish run in the market. However, this does not make absolute that it will remain bullish for a long time as other news can overturn the bullish new overnight, hence changing the course of the chart.
Another important factor that affects timing is the location of the crypto that the trader wishes to trade at a particular time. For instance, a cryptocurrency based in South East Asia will respond more to the Asian time, than the one based in America or anywhere else. This implies that as a trader, your location should not be what will determine your best trading time, but the location of the crypto you are buying or selling at that particular time.
Hours of The Day
The varying hours of the day in different locations also go a long way toward determining the best time to trade. Using Greenwich Meridian Time as an example, between 00.00 to 7.00 GMT, the Asian market is just waking up, and a country like South Korea will be setting out to make several announcements, with several trading activities happening in the market. If you are a trader and wish to trade around this time, then, it is best to login to the best server that keeps up with Seoul and South Korean Bank news.
At 7.00 GMT, the Europeans are already setting to work, and the Americans are also waking up, especially those residing around the East Coast. They may want to follow the Asian news already laid in the early hours of the day or set out on their foot. In the forex trading industry, the bulk of the American news is usually between 13.00 GMT and 16.00 GMT. However, this might not be the case in the crypto world. This is because the timing in Asia around this time might be favoring a reduction in market volume and trading, which will affect the market.
Conclusion: When is the best trading time?
From the analysis done above, the best trading time is dependent on choice. If you are the kind of trader that wants to leverage on the weekend low volume trading news, you can go for it. If you have access to enough Asian news, and you feel it can guide you in making calculative predictions and analysis, you can follow the Asian trading period. Lastly, if you feel comfortable keeping your ears down in Europe and America, you can also trade based on their time.
In all, it is essential for you to study the market holistically. This means that you do not keep your ears in one region and do away with others. This is because the crypto industry is open to all, and a verdict made in China that caused a bullish run can be overturned in the US, causing a bearish run, all happening within a day. Picking the best time is dependent on the resources available to you as a trader!