Is There a Best Time to Trade Crypto?

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

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.

Factors to Consider When Choosing the Best Time to Trade Crypto

• Liquidity: The ability to enter and exit trades at a price as close as possible to the current market price is a factor to consider when trading crypto. Being aware of pricing can allow you to see larger profits on each winning trade, which adds up over time especially when placing large orders or trading smaller altcoins.
• Volatility: Volatility measures how much a certain asset moves over a given time period, and it varies throughout the day. The market moves faster at certain times and slower at other times, which influences trading strateges. 
• Fees: Most blockchains use a variable fee structure that is contingent on supply and demand. For example, if lots of people are looking to place trades, a higher reward is necessary to encourage validators to pick up the excess volume. On some chains, such as Ethereum, fees vary greatly depending on the time of day and the week that you place a trade. 
• Time horizon: If you are looking to open a trade and hold it long term, the exact day or time that you enter may not matter as much, as the price of the token will likely deviate from there in the coming months or years. You can be a bit more picky in terms of choosing a time with low fees and higher liquidity. Short-term trades offer less flexibility in terms of time, so you may have to accept market conditions if you see potential in the market. 

How to Time the Cryptocurrency Market

• Stay informed: Crypto markets constantly change and are very sensitive to news releases. Big news releases can lead to increased volatility, clearing a potential path to profit. 
• Understand market cycles: Crypto traders generally consider a market to be a bear market, a bull market or in a consolidation period. Many traders rely on these categorizations to make trading decisions. 
• Monitor whale activity: In the world of crypto, large traders are referred to as whales. Since the blockchain is public, all trades can be seen by everyone. Being able to track large trades can influence the market. By following whales and placing similar trades or providing liquidity on the other end, big trades can lead to opportunities to profit. 
• Technical analysis: Technical indicators can be useful tools for traders. They use a variety of statistical techniques to provide more data about markets and help traders see below the surface of just the price. By seeing more detailed information, traders can potentially see big moves before they happen and earn profits. 

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