There are a lot of similarities between the stock market and the crypto market. In fact, we could say in some ways that the crypto market is just like the stock market, except that it’s for cryptocurrencies (and isn’t exactly regulated). This perspective begs to ask the question, “Does the Crypto Market ever close?”
Well, the simple answer would be “No it doesn’t.” However, if we were to answer this question in light of setting up trades at opportunistic times, it could get a bit more complex. We know no one likes things complicated at all, so we promise to make this article as simple as possible.
OK, let’s slowly take a few steps back and simplify this. If you’re a crypto trader or enthusiast, you must have asked yourself one or more of these questions:
The truth is that all these questions are your way of getting to a specific goal– which is better trades. To take your trading to the next level, you need a basic understanding of Cryptocurrency trading in relation to time zones.
Timing may not seem like a big deal, but they’d definitely matter if you’re going to take your trading up a notch. So in this article, we will be simply explaining all you need to know to time your trades as perfectly as you possibly can. Let’s get right into it.
First off, we’d try to compare and contrast the crypto and stock markets a bit so we don’t get confused as we go along. If you’re an experienced trader you can obviously skip this section, but if you’re a bit new to the crypto space we think you should stick around.
First things first, a definition of terms and parameters. The use of the term “Stock Market” most times refers to the New York Stock Exchange and NASDAQ as it is the most popular, even though it is but a small part of the Global Stock Market.
Almost every possible country or territory has a stock exchange and they all make up the Global Stock Market. Cryptocurrencies on the other hand are listed on “Exchanges” that allow you to trade them after these exchanges have scrutinized them, before passing them as “stable and safe” to be traded.
Secondly, the crypto market is more or less unregulated except in a few countries where there aren't even fully regulated yet (eg. The United States, China, and some parts of Europe). The Stock market on the other hand has very strict guidelines and regulations. You can read about these guidelines on the NYSE website.
The stock market runs from 9:30 am through 4:00 pm Eastern Time (there’s a pre-opening session from 9:00 am to 9:15 am). On the other hand, there are no definite crypto market times as the market literally runs 24/7. We’d put some other differences for you in the table below to save you some time.
When it comes to time zones, the crypto market doesn’t seem to be very much affected by it. However, a few well-timed tweaks in your trades could mean a massive trade income if you get it right.
How do time zones affect the crypto market? Well, for a start time zones correspond to a certain geographic location. Hence, if you trade your crypto when there’s a positive market move in a particular time zone, you should get an expected positive trade.
Let’s put this notion of ours into perspective. Imagine some news suggesting regulation of crypto in Hong Kong will become favorable in the next few weeks, surely within that period, traders will seize the opportunity to profit off the market.
Another scenario would involve trading during active hours in your particular time zone and other zones with active and overlapping them. We’d give more details about that in the next segment.
Time zones, like we already said, are important tools to take advantage of when trading. Overlapping trading times in crypto “hot zones” will come to a great advantage.
These hot zones have enough liquidity and activity to help boost your traders. The trick is to perfectly time the active trading times where these hot zones overlap and place your trades at those times.
Historical data shows that a greater percentage of crypto transactions occur within specific “business hours,” usually between 8:00 am and 4:00 pm in most countries. This means if you place your trades at the right time, you’d be experiencing liquidity from two or maybe more countries in your trade.
A prime example is the overlap of the American and European business hours. These are two strong “hot zones” that overlap and peak at about 9:00 am and 11:00 am ET (Eastern Time). There are many other pairs you could use to your advantage. The table above should help out with your research on overlapping hot zones.
If you’re not exactly a sucker for research and would love a cheat sheet, we got you covered. Here’s a chart you could use to your advantage. It shows the “realized volatility” of traders corresponding to the hour of the day and day of the week. The chart’s hourly data was estimated using Eastern Time.
Disclaimer: This chart is just an estimate and could be subject to numerous external factors such as news, price changes, gas fees, etc. We advise that you use the information here with a grain of salt and do your research as well.
Crypto traders are also humans and aside from all the crypto news and updates flying around, they likewise need trading advice and expert help from time to time. This is where the expert traders and market makers at Gotbit.io come in. In need of expert advice? Click this link.
The short answer is yes. There are a few research-based ideologies that show that the stock market could in many ways affect the crypto market. When it comes to trading times, the crypto market is arguably connected to the stock market in some ways.
Research carried out using Bitcoin as a pacesetter shows an association between the two (this has been termed “Bitcoin-Stock market correlation”).
First off, the active hours of the crypto market (8:00 am to 4:00 pm) overlap with the stock market’s trading hours (9:00 am to 4:00 pm) for approximately 6 hours. Which is a lot of trading time if you think about it.
This means that any crypto-related gains in the stock market could cause a spike in trades related to that stock asset. This might not be immediate but will ultimately have an impact on the crypto market.
No, the crypto market never closes. It is an unclosed market. However, there are active times when it is best to trade your crypto and leverage on the activity in the market.
Yes, you can. Bitcoin like every other cryptocurrency can be traded 24/7.
Yes, the crypto market is open on weekends. You can trade Bitcoin and other cryptocurrencies on Saturdays and Sundays. However, expert traders advise trading on weekdays as there is more activity during the week
There are no open and close times for the crypto market, it runs 24/7.