Best hours for cryptocurrency trading
Cryptocurrencies are very volatile trading products that might perform both surging and declining movements. Some traders are sure that they can mitigate the impact of this volatility when trading at a specific cryptocurrency trading time. Does this strategy really work and bring profits to a crypto trader?
It’s difficult to answer this question because the cryptocurrency market is open 24/7. That’s why it’s recommended to buy small volumes of crypto assets over an extended period. This strategy is called dollar-cost averaging, meaning you catch other traders that are very low and can average things out even if the trends are extremely declining.
The prices of cryptocurrencies depend on their supply and demand. Every coin might perform a different flow and there’s no single pattern of how to value all tokens. That’s why paying attention to cryptocurrency market timing might be relevant if you consider trading one specific crypto asset.
When can I trade cryptocurrencies with DotBig?
The crypto market isn’t regulated or dependable on any governmental institutions. That’s why the crypto trading time isn’t specified. You can approach this market whenever you need or want. The same goes for traders who earn their profits with DotBig LTD. This broker allows trading cryptocurrencies 24/7.
Considering this, we might assume that the best time to invest in a crypto coin is when you are sure that this coin is worth investing in. Due to the volatility of the crypto market, we recommend you be careful and not invest more than you can afford to lose. No one can guarantee that your crypto trades will be successful. The only thing that DotBig does guarantee is that all your digital funds will be stored in safe conditions and that the platform will quickly respond to your orders.
The most active crypto market timing during day trading
The crypto market doesn’t care where you live and when you are willing to make deals – you can approach the market anytime. That’s why many traders suggest that there’s no point in crypto market timing. Nevertheless, there are specific periods throughout the day or a week when market traders are especially active.
It’s curious to learn that the cryptocurrencies with the biggest levels of market capitalization are actively traded at the same time. This is quite a useful thing to know because you can compare the windows to buy BTC, ETH, BNB, and other assets.
In the US, for example, crypto traders are usually active in the afternoon. This is relevant not only for those who trade the biggest coins but also for users who deal with less serious projects, such as Dogecoin.
If we talk about the activity of traders throughout the week, we can assume that Tuesday is the most popular day to trade cryptocurrencies. Saturday is also an active day for those crypto traders who are willing to follow some patterns of Bitcoin market timing.
These patterns are often neglected when crashes happen to the crypto market. In
Our conclusion on the best hours for cryptocurrency trading
Cryptocurrency market timing can be quite a tricky thing because this industry is too volatile and unexpected. Prices of some assets might be impacted not only by the performance of their blockchains but by speculative actions of their major holders or simple publications by celebrities in the media. No one can determine the best hours for cryptocurrency trading. They might depend only on your risk tolerance and the fear of missing out.
FAQ
1. Where can I trade cryptocurrencies?
The biggest volumes of cryptocurrencies are traded on the most popular crypto exchanges, such as Binance, Kraken, and Coindesk. But if you already have an account at the DotBig forex broker, there’s no need to register a new one on any of the crypto exchanges. You can trade cryptocurrencies with DotBig.
2. What are the best cryptocurrencies to trade?
The most popular cryptocurrencies to trade are the ones that have the biggest market capitalization. These are Bitcoin (BTC), Ethereum (ETH), Tether (UDST), XRP, Cardano (ADA), and others.
3. Why are cryptocurrencies so popular among traders?
Unlike many other tradable assets, cryptocurrencies don’t depend on specific institutions such as central banks. This makes trading riskier. But at the same time, it increases the possible returns. Although the crypto market is more volatile than any other, a lucky crypto investment is more likely to bring millions in profit than an investment in stocks.
4. What is the most efficient strategy for crypto trading?
In this DotBig review, we don’t have enough verified data to claim that any crypto trading strategy can be more beneficial than the other ones. However, we can say that the dollar-cost averaging technique is the one that can mitigate the impact of market volatility. You might also consider automated trading. DotBig provides special signals that tell you when to make a trade based on accurate technical data.
5. What is the role of transaction fees in cryptocurrency?
A transaction fee is paid when a certain amount of cryptocurrency is transferred from one wallet to another. Their amounts depend on the peculiarities of certain blockchains.
Learn how to trade cryptocurrencies with DotBig
If you are a novice trader, the crypto market might seem far too complicated for you. Is DotBig good to learn how to cope with it? We believe that yes – DotBig is one of the few multi-asset brokers where cryptocurrency trading is enabled. The most common way to learn how to trade digital assets is to register a demo account. Or, you can trade with a trading manager specializing in cryptocurrency trading. Last but not least, try copying the strategies of more experienced participants, and maybe you will understand how to create your own.
Whatever option you choose, DotBig is a good place to learn how to trade. Just keep in mind that it always involves risk and even in the best conditions you might suffer financial losses.
