If you are new to trading in the crypto markets, you’ll definitely want to do your research before jumping in head first. The crypto markets are much different from traditional stock markets, with higher volatility and each token trading with its own independent catalysts.
Crypto investors can trade cryptocurrencies 24/7 and 365 days per year. This is one of the biggest differences between the crypto markets and the traditional stock market.
It’s definitely a new experience to have the prices of your assets and investments fluctuate even as you sleep but the ability to trade crypto 24/7 certainly has its share of benefits as well. For example, if you’re a night owl, you can log in to your crypto exchange at any time to check out the action in the markets.
Let’s check out the other pros and cons to being able to trade crypto 24/7.
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Can You Trade Cryptocurrency 24/7?
Crypto investors can trade cryptocurrencies 24/7. In fact, the crypto markets never take a day off, even on holidays like Christmas or New Year’s.
It is a major reason as to why trading cryptos has gained so much popularity in recent years. The crypto markets are designed to be decentralized and global, so that anyone can access and trade crypto anywhere in the world (as long as it is legal in your country).
It is an efficient and well-oiled machine and crypto traders love the ability to make trades at any time of the day. In theory, it creates a lot more opportunity to make money by trading cryptos around the clock!
Having the crypto markets open 24/7 has also created the belief that cryptocurrencies are riskier investments and that crypto traders are more like gamblers. While this might be true to an extent, the crypto markets have also been relatively stable and have actually been trading in sympathy to the stock markets like the S&P 500.
With that said, just because the markets are open 24/7, you still need to have an account on a platform that supports the crypto you want to buy, and remember, some platforms list cryptos but they aren’t tradable on the platform.
Does Crypto Trade on Weekends?
Crypto investors can trade their cryptocurrency on the weekends. Every Saturday and Sunday, 24 hours per day. Remember, when it is Sunday in your area of the world it is likely Monday in another. Because the crypto markets are global and without borders, the only way to allow access to everyone was to make them open 24/7.
Recommended Financial Geek Article: Does the Stock Market Close on Weekends?
Now, if you are used to the stock market you might have some anxiety about this as it is absolutely possible for a crypto you are invested in to drop significantly overnight. But with the same argument, there is a chance that your investment could skyrocket while you are sleeping as well.
Just like with the traditional equities markets, you can protect yourself in the crypto market with things like setting a stop loss, trading options or futures contracts, and even opening a short position in a specific crypto.
Can You Day Trade Crypto?
Yes! Day trading crypto is popular amongst full-time crypto traders. Given the increased volatility in cryptocurrencies, day trading can be quite lucrative if you are successful at it.
But that’s a big if.
Day trading is really hard, even for experienced investors. So if you’re new to the world of crypto investing, I wouldn’t start off my crypto journey with day trading.
Keep in mind that just as with stocks, the larger the token market cap there is generally less volatility. So trading Bitcoin or Ethereum has less day to day price action than a small-cap meme coin. But even still, Bitcoin and Ethereum have also seen massive one-day drops so don’t assume these benchmark cryptos don’t have their own volatility.
As I talk about in my article Top 9 Reasons Why Day Trading is Bad, I am not a big fan of day trading and don’t recommend it, especially for new investors.
Platforms You Can Trade Crypto On
Since all crypto exchanges and trading platforms track the global crypto markets, they are all open 24/7 for you to enter trades. It seems like with each passing month there are new crypto exchanges popping up as the industry continues to expand at a rapid rate.
So if you are a new crypto trader, you’ll likely want to stick with the biggest names in the industry. Exchanges like Coinbase, Binance, and Crypto.com are all free to sign up for and offer the widest variety of crypto tokens to trade.
As a Canadian, I actually use Wealthsimple Crypto, but I also have an account with Coinbase too.
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In general, Coinbase, Crypto.com and Wealthsimple Trade (if you’re Canadian) are all great platforms for beginners, while Binance offers a full suite of advanced crypto trading strategies. All three are secure and open 24 hours per day, 365 days per year!
When is the Best Time of Day to Trade Crypto?
It is an interesting question that gets asked a lot. Generally when we talk about the stock market, the period just after opening and just before the closing bell offer some great trading opportunities.
So is there something similar for cryptos?
While some people will swear by certain times of the day, remember that every trader is in a different time zone. What is evening for you is midday in Asia and early morning in Europe. Also remember, traders aren’t confined by traditional time zones like they are with the equities markets. A trader in the same time zone as you may like to trade more at night.
People in the crypto industry have different takes on this, but generally the sentiment is that Asian crypto traders tend to be more aggressive. There are a lot of crypto whales in China, and in general, Asian traders use higher leverage and trade more frequently. This results in slightly elevated volatility during the North American overnight session.
Conclusion: Does Crypto Trade 24/7?
Unlike the traditional stock market, you can trade cryptos around the clock, everyday of the year! Admittedly, it can be overwhelming when you first get into trading cryptos but after a while, you will get used to these markets being open all day.
There are definitely benefits to being able to trade cryptos 24/7, especially for those who work a 9 to 5 job and cannot dedicate attention to the crypto markets. The more time the markets are open, the more opportunities there are for you to make a profit!
As always, thanks for reading folks.