From Mumbai to Manhattan, want to know the best crypto market timings to trade? We are here to help you!
Now that you’re here, I am sure you’re looking to find the right crypto market timings to boost your crypto returns. Finding the right time to trade crypto is challenging for both a novice and a pro, regardless of whether it is Centralised (CEX) or Decentralised exchange (DEX). We have curated a guide on the best crypto market timings to trade in crypto in India and globally.
If you’re a pro-crypto trader, you have the upper hand. Pro-crypto traders mostly avoid trading on the weekends as the volatility is high and the trade volume is low. Weekends are there to understand the strategies, the crypto market, and the crypto market timings.
The next section of this blog deals with the crypto market timings, followed by the factors to consider the best times to trade cryptocurrency in India and globally. Keep reading till the end.
Identifying Cryptocurrency Market Hours
The crypto markets operate mostly in the USA time zone. The market operates all day long and every day and has no fixed timings, allowing you to trade 24/7*365 days.
Indian cryptocurrency traders may take advantage of enhanced liquidity and trading possibilities by modifying their trading timeline to coincide with USA trading hours. The market typically has more activity and volatility during these overlapped hours, with larger trading volumes and more significant price swings.
Indian traders now have greater opportunities to carry out trades at their chosen pricing and profit from market fluctuations. In this manner, one can look for overlapping time zones within the USA time zones and observe high trade volume.
Indians have an advantage when trading crypto during US trading hours. This helps Indian crypto traders interact more with traders and investors in other crypto markets. Trading in the USA timezones can increase market transparency and efficiency.
Compared to a traditional stock exchange, the cryptocurrency market time is flexible, allowing the market to be relatively steady. Instead of focusing on activity at certain periods of the day, people trade cryptocurrency all day long.
Factors to Consider For Selecting the Best Crypto Market Timings
Before you trade, there are a lot of factors that affect the price of the cryptocurrency in a market. World News and sometimes traditional stock exchanges can impact the crypto market. We have listed below the factors to look into while you select the best crypto market timings to trade cryptocurrencies.
1. Market Volatility
The term “volatility” describes fluctuations in market prices. A trader can make profits during market volatility if they plan their trades and understand the market situation well. The crypto market also offers a plethora of options, particularly when working with cryptocurrency options. As a beginner, trading when the market is stable is safer than when it’s volatile.
2. Individual preferences
Sometimes, trading crypto when you’re already preoccupied may not be fruitful, as you might make errors. Depending on your availability, you can decide when you’d like to trade. It is essential to trade when you’re calm so you can make mindful decisions.
3. Economic News and Events
While news of intriguing cryptocurrency projects might skyrocket market values, economic crises can force them to crash. Current events have a significant influence on the cryptocurrency market. There are times when planned strategies might not work because of an unexpected news event. It is important to understand the market condition and proceed trading with caution.
4. Gas Fees
Gas Fee refers to the fee on transactions or contract execution on the Ethereum network. In order to handle these exchanges, gas fee compensates for the processing power expended. Trading costs might significantly reduce your profits if you’re a day trader in cryptocurrency with low margins.
For every transaction, you should allocate 0.05% to 0.25% of the overall transaction volume as the gas fee. The gas fee depends on the cryptocurrency you purchase and the cryptocurrency exchange you use. Some traders feel that the optimal moment to trade cryptocurrency is during the period of the lowest gas expenses.
5. Conflicting Hours for Markets
When many crypto traders worldwide are active during a certain timeframe, market hours overlap. Trading when there is an influx of active traders in certain timeframes might be beneficial if you take advantage of these overlaps.
6. Differences in Time Zones
Countries like the USA, China, and Japan have a large number of active crypto traders. You may maximize your trading strategy by being aware of the important crypto markets’ trading hours, particularly those that coincide with your time zone. Because they trade during the hours most traders and investors are asleep, some traders like to design tactics around this reality.
7. Trading Objectives and Style
Various day trading styles, like Arbitrage or HFT, work best in different timeframes. The strategies you apply work best depending on the type of strategy and time of trade. Depending on your strategy, find the ideal cryptocurrency market time based on active trade hours.
8. Weekend and Holiday Impacts
The Crypto Market functions daily and has no fixed timings. Traders are welcome to trade at the times they prefer. Holidays and weekends may affect trade volume and liquidity.
Certain traders could opt to steer clear of these times or modify their tactics accordingly. Trading doesn’t occur much on the weekends. Hence, traders and investors can take advantage by trading during the weekends as well.
When Is the Best Time Of The Day To Trade Crypto?
Want to know the best crypto trading time in India?
Finding the right time to trade as an investor or trader is crucial. Various other factors besides time determine when you can make good returns on your investments. The timings given below are exclusive of the daylight savings time that takes place in some countries. The Crypto Market primarily functions based on the USA time zone (Eastern Time).
If you’re a trader in India, you can trade across markets during the timeframes below. If you’re a trader living in another country, you should coincide Indian Standard Time (IST) with your respective country’s time zone.
1. Early Morning (6AM - 9AM)
During this time, traders in the USA begin their day trade. Due to the overlap of markets, traders and investors in India can benefit from greater liquidity and trading volume. Due to increased trade volume, this period observes substantial price changes, making it appropriate for aggressive trading tactics.
2. Late Night (9 PM - 12 AM)
The European markets are now opening up for active trade. This is an ideal time to trade, and Indian traders can benefit from trading in the USA and European markets. As a result of the higher trade activity during this period, there may be more favorable pricing circumstances and improved liquidity.
When Is The Best Time Of The Week To Trade Crypto?
Mondays and Tuesdays are often the greatest days for Bitcoin prices, while Thursdays and Fridays are usually the lowest. From the previous statement, you can consider selling crypto on Mondays and Tuesdays and buying crypto on Thursdays and Fridays due to the price variation.
Compared to weekdays, it is observed that gas fees are lower on the weekends. Traders can consider trading during the weekends, too.
When Is The Best Time Of The Month To Trade Crypto?
According to the price of Bitcoin’s past, most investors benefit more at the start of the month. Weeks become months, and fresh trading patterns continue the pricing tendencies that eventually drive the prices of different cryptocurrencies up and down.
The optimal time of the month to purchase Bitcoin will depend on your ability to wait and learn about the price trends of your preferred currencies, as trends in cryptocurrency are ever-changing. The prices generally increase at the end of the month and continue to increase for a few days during the beginning of the next month.
Observe for the first 5-10 days, and the prices may go lower for some time before they begin to increase.
When Is The Best Time Of The Year To Trade Crypto?
Traders experience the biggest crypto gains during Autumn (October and November) and Spring (April and May). The returns are low during August and September. The trading activity and volatility are low during vacations and holidays.
Key Points To Remember While Trading In Crypto
Now that you’ve read about important and relevant parts for the best times to trade in cryptocurrency, we have mentioned some key factors that traders tend to overlook while trading in crypto:
- Keep a diverse portfolio to avoid losing all your investments. Markets tend to crash, and it is important to diversify your investments to avoid major losses.
- Trading without researching various strategies and without understanding the market will lead you to substantial financial losses. Always research and continue to research more while you trade. Do not blindly give in to the hype of a certain cryptocurrency without prior research.
- Before trading, calculate additional fees and taxes on profits deducted by the crypto exchange you’re using. Always plan how much crypto you plan on buying and selling.
- Ensure your trading strategies are not affected by the crypto market’s volatility. Consider whether you will be making huge trades that call for a very liquid market. Check to see if your investing approach will benefit more from a high or low trading volume.
- As per your risk appetite, take a call if you want to stay out in times when the market is highly volatile. An investing strategy can succeed or fail based on your positions, and because cryptocurrencies are volatile, it can be challenging to see trends and buy/sell signals.
Lastly, remember the best time to trade crypto is when your local time coincides with the New York time zone.
Conclusion
In this article, we have told you about the crypto market timings, the best crypto trading times, factors to consider and the platforms to trade crypto. We have also written about crypto day trade strategies, which you can read here.
The rabbit hole of the cryptocurrency world may seem vast. You can use this article as an estimate and strategize your investments for better returns. Try what time and strategy works best for you based on your financial goals. For all you know, a trial-and-error method might work as well.
Dear reader, keep in mind that this article doesn’t promise you profits or losses, but it is purely informative, and it is for you to decide your stakes.
Always remember, for every crypto transaction you make and for the profits you make, a certain fee is charged as tax. It is crucial to examine various trading platforms, hidden costs, and local taxes before you start your trading journey. KoinX makes cryptocurrency taxation and compliance easier. To simplify the process of cryptocurrency taxes, sign up now!
