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What is the best time to trade cryptocurrency?

Cryptocurrencies are traded 24/7 and investors from different parts of the world participate. The cryptocurrency market is a volatile market that can present opportunities for making big profits or incurring big losses.

How do cryptocurrencies work?

There are two main types of cryptocurrency trading, the most common type of trading involves buying the actual cryptocurrency at a low price and selling it in the future at a high price via an exchange.

As for advanced trading in cryptocurrencies, it includes trading cryptoassets through contracts for difference with brokers, without the need to own the cryptocurrency itself in trade. Leverage option.

Traders who use CFDs in cryptocurrency trading also do so using one or more trading strategies, we find that there are technical traders who rely only on price chart patterns to determine when to buy or sell crypto assets while some other traders rely solely on fundamental analysis that It includes following news trends to make trading decisions, and some traders combine technical and fundamental analysis when trading cryptocurrencies. Trading strategies can also be categorized based on the total time duration of the trade.

In short.. there is day trading and fast trading which is a very popular day trading strategy.

What is the best time to trade cryptocurrency

The Best Time to Day Trade Cryptos

Trading is a serious activity, as professional traders aim to make a profit from the financial markets in the long run and to achieve a desirable level of profitability in cryptocurrency trading, it is important to control trading costs as much as possible.

Each broker charges a trading fee, and these fees vary in different trading times for cryptocurrency trading. This variation in the cost of trading is largely due to differences in crypto-asset liquidity, volatility, and trading volume.

The best time to day trade any cryptocurrency is from 8:00 am to 4:00 pm local time. Since cryptocurrencies are a relatively new financial market (compared to forex and stocks), their liquidity and volatility are not completely predictable especially with regard to altcoins.

Most of the well-known brokers only offer ratings for trading popular cryptocurrencies, such as Bitcoin, Ripple, Ethereum, and Cardano, and it is important to note that even popular cryptocurrencies can swing between dizzying highs and rapid declines in a very short period of time.

As for cryptocurrency traders, they have to monitor many factors before making trading decisions, as there are three main factors to look at which are liquidity, volatility, and trading volume.

These factors will always influence the spreads you will experience when trading any crypto asset and the best way to ensure you get the best spreads is to trade crypto assets daily between 8am and 4pm local time.

When should you avoid day trading in currencies?

When trading cryptocurrencies daily, you might make a series of impressive profits but the truth is that losing trades will also happen, where it is okay to lose a trade it is normal based on your trading strategy.

However, what is really annoying is losing the trade only due to excessively high spreads, without paying attention to the market liquidity, volatility, and trading volume. Cryptocurrency trading on weekends is very bad, many traders are out of the market and trading volume is likely to be low. .

Typically, swing traders are not affected by higher spreads as much as day traders, this is because swing traders aim to profit from large market movements while day traders aim to profit from small market movements, and they have to impose Same spreads for the same open position.


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