SHORT ANSWER: The best time to trade is usually during market hours of stocks in the U.S., which is 9:30AM - 4:00PM EST. Benzinga’s readers turn to Coinbase, eToro or Kraken when it’s the right time to trade crypto.
For almost all assets, there is a time of day when a majority of trades are placed and the majority of the money for the day is made. For example, most volume in the stock market happens shortly after open and right before close. Traders should be aware of this important information. However, coming to conclusions about the best time to trade is a bit more difficult for crypto traders. Let’s take a look.
- Understanding Crypto Market Hours
- Market Volatility
- Trading Volume
- See All 20 Items
Understanding Crypto Market Hours
Since cryptocurrency is decentralized and no single entity governs trading rules, crypto markets are open 24/7. Markets never close and are constantly moving – even on weekends, holidays and the middle of the night.
However, the time of day that you trade crypto can have an impact on your experience. Crypto trading is not uniform throughout the day; it changes as certain parts of the world go through their respective work days and waking hours.
Timing is important in cryptocurrency trading as it can affect your success in a volatile market. Recognizing the factors that determine the ideal times to trade can assist you in making better decisions and enhancing your trading strategy.
Market Volatility
It's important to consider the level of market volatility at various times. Crypto markets often see sharp price changes, and knowing when these peaks happen can aid traders in making informed choices. Traders should analyze historical data to pinpoint periods of significant movement.
Trading Volume
Looking at trading volume is important for deciding the optimal times to trade. Higher trading volumes generally suggest better liquidity, which facilitates entering and exiting trades with minimal price slippage. Study patterns to identify when trading volume peaks for the cryptocurrencies you are interested in.
Market Trends and News
Cryptocurrency prices are affected by news and market trends. Keeping an eye on significant events, announcements, and regulatory updates is important, as these factors can lead to price fluctuations. Traders might find it beneficial to time their trades around major news releases or during times when favorable developments are anticipated.
Time Zones and Global Markets
Cryptocurrency markets are open 24/7, but trading activity differs across regions. Knowing the trading hours of major exchanges in various time zones can help determine when certain cryptocurrencies see the most activity. Traders should seek overlaps in global trading hours to capitalize on heightened market activity.
Personal Schedule and Risk Tolerance
Personal factors like schedules, risk tolerance, and trading strategy are important. Traders should pick times that suit their availability so they can keep an eye on their trades and respond to market shifts. Also, understanding one's risk appetite can guide traders in choosing appropriate time frames for their trading decisions.
How to Time the Cryptocurrency Market
Timing the cryptocurrency market can significantly impact profit maximization and loss reduction. Due to the market's volatility and quick price changes, learning different strategies and indicators can assist investors in making well-informed choices about when to purchase or sell their digital assets.
Market Sentiment Analysis
Keep an eye on general market sentiment by checking social media, news sources, and cryptocurrency discussion forums. Using tools for social media sentiment analysis can help determine if the mood is positive or negative, which may suggest when to consider buying or selling.
Technical Analysis
You can use chart patterns and technical indicators like Moving Averages, RSI, and Bollinger Bands to forecast future price movements. Examining past price data can help you find support and resistance levels, which can guide your trading decisions.
Trend Following
Keep an eye on market trends and align your actions with them. If you see steady patterns in price changes, whether they're going up or down, think about when to buy or sell. Utilize trend indicators to support your findings.
Volume Analysis
Analyzing trading volumes can help you understand changes in market dynamics. Higher volumes during price increases may point to a strong trend, whereas low volumes during a price rise could indicate a possible reversal. Adjusting your trades according to volume can enhance your trading strategy.
News and Events Monitoring
Keep an eye on events like network upgrades, regulatory announcements, or major partnerships that might affect prices. Market reactions to news can cause considerable price fluctuations, so planning your trades around these events can be advantageous
When is the Best Time to Trade Crypto?
Let’s take a look at some of the best times to trade crypto — basically during times of greatest liquidity and volatility, as these can allow traders to enter and exit trades and potentially profit.
Best Time of the Day to Trade Crypto
For the first several years, crypto trading was dominated by Asian traders, meaning that the best time to trade was in the middle of the night for U.S.-based traders. However, as institutional adoption brought more trading volume to the Western hemisphere, the timing has changed. Now, the best time to trade is usually during market hours of stocks in the U.S., which is 9:30 a.m. to 4:00 p.m. EST. More specifically, 9:30-10:00 a.m. and 3:00-4:00 p.m. are times when volatility is usually the highest.
Best Time of the Week to Trade Crypto
Since institutions drive a decent amount of the volume in crypto markets, weekdays are usually the best for trading crypto. More specifically, Mondays and Fridays are the days when markets see the most volatility.
Best Time of the Month to Trade Crypto
A general trend is that prices rise during the first half of the month and fall during the second half of the month. This movement is not true for all tokens and all months, but it could help traders make informed decisions.
Best Time of the Year to Trade Crypto
Similar to stocks, cryptocurrencies tend to see a lull in volume during the summers, as many traders go on vacation and are not focused on trading. Crypto tends to see the most gains during the spring and fall months.
Where to Trade Crypto
If you are interested in potentially taking advantage of some of the insights shown above, you can find quite a few great places to start your crypto trading journey. Coinbase, eToro, Kraken and Webull are some of the best platforms for those looking to trade crypto. You can learn more about each and get started by taking a look below.
Bottom Line
Crypto markets are notoriously fast-paced and volatile. However, understanding some of the more prominent trends can allow you to better understand the market as a whole and make more informed trading decisions. Knowing more about how crypto trades at different times of the day, week, month and year can allow you to consider more information when planning your trading strategy.
Frequently Asked Questions
What is the best time to day trade cryptocurrency?
Day trading cryptocurrency is usually most effective during peak market hours when trading volume and volatility are high, such as during the overlapping times of major market sessions (Asian, European, and North American) or during important market events. Traders also find potential opportunities in the early morning hours when new information or developments can influence prices.
What time of day is it best to buy crypto?
The ideal time to purchase cryptocurrency can change based on market trends and trading volume. Many traders recommend buying in the early morning or on weekends for potentially better prices due to lower liquidity. It’s important to conduct comprehensive research and think about your investment strategy instead of only concentrating on timing.
Which time zone is best for crypto trading?
The ideal time zone for crypto trading usually depends on market activity and individual schedules. However, many traders tend to work during the overlap of the major markets, especially when both the Asian and European markets are open. This period generally falls between 2 AM and 4 AM UTC, as it provides traders with increased volatility and liquidity.
About Caden Pok
Caden has been involved with crypto since 2018, when he began investing, trading, and mining tokens. He took part in undergraduate research studying cryptoeconomics at the University of Michigan, where he will graduate Phi Beta Kappa with a bachelor’s in economics in 2025. He is experienced with DeFi technology and multiple blockchains, currently investing in Ethereum and Bitcoin.