Is There a Best Time to Trade Crypto?

Did you know that the time you choose to buy and sell your crypto makes a big difference? Of course, most traders know the basics of selling at a high price and buying at a low price. However, there are also a lot of other little details to consider when picking the best time to trade crypto. Cryptocurrency market analytics reveal that certain times of day and certain days of the week provide unique advantages to investors. According to investment advice experts, here's what you need to know about the best time to trade crypto.

Key Takeaways:

• Unlike stock markets, cryptocurrency markets don’t have set trading hours with breaks on the weekends. As such, you can trade cryptocurrency 365 days a year, 24 hours a day.

• Some of the factors to consider when deciding the best time to trade crypto include gas fees, market volatility, economic news and events, and trading style and goals.

Understanding Crypto Market Hours

Finding the best time to trade crypto can be somewhat complex because cryptocurrency markets are always open. Unlike stock markets, cryptocurrency markets don't have set trading hours with breaks on weekends. Instead, they’re constantly operating. You can trade cryptocurrency 365 days a year, 24 hours a day.

This results in some unusual market trends. Instead of having big rushes to trade crypto at opening and closing times, crypto market activity is a lot steadier. People trade crypto throughout the day instead of concentrating trading activity at a few specific times. Furthermore, cryptocurrency is an international currency, so it can operate in all time zones. Compared to stock market trading hours, cryptocurrency trading hours tend to vary more.

Factors to Consider When Deciding the Best Time to Trade Crypto

There's no single best time to trade crypto because the cryptocurrency market is so complex. Instead of just letting someone tell you the best time to trade crypto, you'll need to stop and consider your own goals first. The best time to trade crypto will vary greatly, depending upon what you're hoping to accomplish. Here are some essential factors you need to consider before picking your optimal cryptocurrency trading time.

Gas Fees

Depending upon the crypto you buy and the crypto exchange you work with, you can expect to pay 0.05% to 0.25% of the total transaction volume for each transaction. If you're day trading crypto and operating on thin margins, trading fees can eat away at your profits. For some traders, the best time to trade crypto will be the time when gas fees are lowest.

Market Volatility

Market volatility is another factor that can determine the best time to trade crypto. Statistically, crypto markets are most volatile between 8AM and 4PM in the local time of the crypto's biggest market base. For some traders, market volatility is a good thing. It provides a lot of opportunities, especially if you work with crypto options. However, market volatility can be confusing for beginners, so some traders may find that the best time to trade crypto is when the market is more stable.

Economic News & Events

The crypto market is heavily impacted by current events. Economic disasters can cause prices to plummet, while news of exciting crypto projects can make market prices soar. It's worth it to pay attention to economic news no matter what your trading strategy is because current events can disrupt the market and temporarily render popular trading times useless.

Trading Style & Goals

Your trading style has an impact on deciding your best time to trade crypto. A person who makes hundreds of trades per day while hoping to capitalize on tiny fluctuations in price will have a very different strategy from a person who buys promising cryptos and holds them for months, in the hope that their market prices will drastically rise.

Personal Availability

Don't forget that the best time to trade crypto also depends upon your personal schedule. You're more likely to make mistakes if you're trying to trade while you're half asleep or busy at work. Always make sure you choose a trading time when you can calmly consider options and thoughtfully make purchases.

Technical Analysis Patterns

Many crypto markets follow patterns. If you analyze pricing history closely, you can see certain recurring market trends, like a bull bias during a four-hour period each day. Using these types of trading tools usually requires a focused approach and the ability to navigate a lot of software and data. However, if you like a research-oriented trading strategy, following technical analysis patterns can be a great way to pick the best time for you to trade crypto.

Time Zone Differences

Watching cryptocurrency market trends in other time zones is also important. The United States, Japan and South Korea conduct the largest amounts of crypto trading, so if you're outside these time zones, you can find some unique opportunities. Some traders like to create strategies that focus on the fact that they trade when most investors are asleep.

Overlapping Market Hours

Overlapping market hours occur when multiple regions with many crypto traders are active. For example, both New York and London traders are active between 8AM and noon. If you prefer trading during times with a lot of trading activity, it may be worthwhile for you to take advantage of these overlaps.

Is There a Best Time to Trade Crypto?

Ultimately, there are a lot of different times that can be the best time to trade crypto. One person's perfect time to trade crypto might be a disaster for another crypto investor. For people looking to day trade, the best times are often those with a lot of volatility and high trading volume. However, if you prefer long-term investments, the best time to trade crypto will depend more upon historical cryptocurrency market trends.

Keep in mind that selecting the best time to trade crypto can’t compensate for a poor investment strategy. If you're making unwise decisions or working with an excessively high-risk tolerance, you'll run into problems no matter what time of day it is. This is why it's so important to pick your trading strategies first, and then find the best time to trade crypto for your specific situation.

How to Time the Crypto Market

With so many different strategies for timing the market, you'll need to approach this concept thoughtfully. Follow the tips below to ensure you find the best time to trade crypto for your specific needs.

• Check to see what hours in your local time correspond to New York trading hours.

• Think about whether you plan to trade large amounts that require a highly liquid market.

• Calculate to what extent changes in trading fees will affect your profits.

• For buying Bitcoin or other specific cryptos, check pricing history for useful patterns.

• Consider whether volatility or market manipulation will affect your trading strategies.

• Decide whether you want to make an effort to keep up with crypto trading news.

• Plan how often you want to sell and buy cryptocurrency.

• See whether high or low trading volume will be more useful for your investment strategy.

• Analyze your risk tolerance and decide whether you want to avoid periods of volatility.

When Is the Best Time to Trade Crypto?

Once you have an idea of the types of market conditions you're looking for, it's easy to start watching cryptocurrency market trends and find the best time to trade crypto. Analysis of pricing data and crypto market trends reveals that certain times are especially good for traders. Depending upon how often you want to trade, below are the best times to trade crypto.

Best Time of the Day to Trade Crypto

For the typical trader, the best time to trade crypto will be when there’s plenty of market activity. This occurs between 12PM and 8PM UTC, which coincides with typical workday hours in the United States. Pricing data suggests that volatility is particularly high around 1PM UTC. However, if your main goal is to reduce fees, you might want to pick a different time of day. Gas fees and other trading fees are lowest between 4AM and 8AM UTC.

Best Time of the Week to Trade Crypto

When finding the best time to trade crypto, it's also worth looking at trends throughout the week. Bitcoin prices tend to be highest on Mondays and Tuesdays, while they're particularly low on Thursdays and Fridays. Therefore, some investment advice suggests you sell at the beginning of the week and buy cryptocurrency at the end of the week. 

Though most big investment firms don't trade on weekends, there can be some advantages to trading during this often-overlooked time. Gas fees are particularly low if you pick weekends to buy cryptocurrency.

Best Time of the Month to Trade Crypto

The history of Bitcoin prices reveals that most investors make a bigger profit at the beginning of the month. Though prices can be higher at the end of the month, the biggest jumps in price overall tend to occur at the beginning of the month. In the first ten days of a month, keep an eye out for low-priced crypto because its coins could potentially undergo a large increase in price.

Best Time of the Year to Trade Crypto

Statistically, the biggest crypto gains tend to happen in spring and autumn. Traders tend to make more profits if they buy crypto during October through November and April through May. Meanwhile, the lowest amounts of profit occur in late summer. These cryptocurrency market trends usually occur because the market’s trading volume and level of volatility are generally lower during times with a lot of holidays, school breaks and vacations.

Where to Trade Crypto

Finding the best time to buy cryptocurrency is just one small part of the puzzle. To be successful, you also need to research crypto and trading strategies carefully and work with a convenient crypto exchange. Bybit makes it easy to find the best time for you to sell and buy crypto. With a broad range of market analysis tools, users can examine the market and identify useful times to buy Bitcoin and other popular cryptos.

Trading crypto on Bybit follows three simple steps:

1. Create a secure Bybit account to store all of your information. This account can be used on the Bybit website and app, and will store your crypto for you.

2. Verify your financial information so you can easily send money to and from your Bybit account.

3. Use the One-Click Buy feature to sell and buy cryptocurrency instantly, or browse the Bybit market to explore a broad range of crypto tokens.

The Bottom Line

If you want to maximize your crypto profits, it pays to consider the time of day, week and year. Most trading happens during the American workday, and investors can use this knowledge to take advantage of volatility or find lower gas fees. Keep in mind that different times provide different perks, so don't be afraid to experiment until you find the best time to trade crypto for your specific needs.

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