The crypto market operates 24 hours a day, 7 days a week. However, price volatility varies depending on trader activity during different hours and days.
Several factors, such as overlapping sessions of global markets or the daily candle close time, influence trading volume in the cryptocurrency hours.
Difference Between Crypto Market Hours and Other Markets
Traditional markets such as Forex market are only active during business days. In contrast, crypto hours are continuous, with trading possible at any time.
Despite its uninterrupted nature, the crypto market hours show varying levels of activity depending on factors such as liquidity, market sentiment, and major news events.
Peak Trading Hours in the Crypto Market
Cryptocurrency trading volume tends to surge in parallel with global market hours. Most of crypto transactions take place between Monday and Friday, aligning with the business days of other global markets.
During the day, trading volume typically increases during major trading sessions.
This increase often begins with the opening of the London session and peaks during the overlap between the London and New York sessions.
Best Time to Trade Cryptocurrencies
To determine the best time for crypto trading, it’s essential to first define your trade duration.
The importance of choosing the right cryptocurrency hours depends on whether the trade is short-term or long-term.
Best Time for Short-Term Crypto Trading
For short-term trades, factors like volatility and liquidity play a critical role. It’s preferable to trade during hours when the market is at peak liquidity and volatility.
Usually, this happens during the overlap of the London and New York sessions, which marks the most active period for crypto trading.
However, if you lack experience, it’s better to trade during hours with lower volatility, when price movements are more rational.
After the New York session ends, the crypto market hours typically calm down, offering a better environment for beginners.
Note: You can track trading sessions using a session indicator tool.
On weekends (Saturday and Sunday), when global markets are closed, volatility decreases, providing a calmer environment for novice traders.
Best Time for Long-Term Crypto Trading
In long-term strategies, timing analysis is less critical compared to short-term trades. Instead, fundamental analysis and technical analysis become more significant.
Still, due to the cyclical nature of crypto market hours, it’s possible to identify patterns for long-term entries.
For instance, as Bitcoin’s halving approaches, the market often trends downward, followed by bullish sentiment closer to the halving date.
Also, nearing the end of each calendar month, the trend of the previous month often ends or reverses.
Best Days of the Week to Trade Cryptocurrencies
In general, identifying the best crypto market hours involves analyzing volume, volatility, and liquidity. Typically, Mondays and Tuesdays see higher trading volume than other days.
For example, on Fridays, a significant economic report like Non-Farm Payrolls (NFP) may be released, directly impacting volatility and volume.
Best Time to Trade Altcoins
Since Bitcoin (BTC) dominates the crypto market, its trading volume usually surpasses the altcoins.
However, during Altseason, this changes. Traders shift focus to altcoins, significantly increasing their trading volume.
This increase in volume and volatility during Altseason, creates favorable conditions for trading altcoins.
Using Fear and Greed Index to Find the Best Time to Trade
Trader sentiment, especially fear and greed, greatly influences market volume. Higher greed typically leads to increased trading volume and more active markets.
Interestingly, during periods of intensified fear, volume may also increase.
To measure fear and greed in the cryptocurrency market, use the TradingFinder Fear & Greed Index tool.
Why Choosing the Right Time Matters in Crypto Trading
Trading volume directly affects how analyzable a price chart is. By choosing the optimal crypto hours, you can reduce trading risks and improve your win rate.
Although the crypto market hours are always open, analytical methods don’t work equally well at all times. Poor timing in analysis can lead to inaccurate predictions and unsuccessful trades.
Conclusion
The crypto market is open 24/7, including weekends. Finding the best cryptocurrency hours to trade depends on various factors like trading volume and global market activity.
The higher the volume, the better the price chart reflects market behavior, making analysis more accurate.
