Dynamics and Liquidity – What Time of Day Is It Better to Trade Cryptocurrency?

Cryptocurrency trading is getting more and more popular every day, which means there are more people involved and profitable opportunities may be getting scarce as time goes by. Hence, it is crucial to know certain hacks to increase gains strategically.

One of the best-known hacks in the industry is to trade during the most profitable hours during the day. However, the question is how to choose what time of the day is the best for trading cryptocurrencies for profit? This goes beyond the conventional advice that tells you to purchase bitcoin and hold.

In this article, you will discover the dynamics and liquidity factors that affect crypto trade timing and how to be exposed to the right opportunities at the right time.

Stock Markets vs Cryptocurrency Markets – A Brief Comparison

Nowadays, traders and investors have a wide array of options when it comes to building a portfolio and exposing them to profitable opportunities. Among the most popular options, there are FOREX and derivatives markets, both with negotiation at the billion-dollar level.

However, the most popular forms of trading/investment amid the common folk are still stock markets and cryptocurrencies, especially after the massive exposure of the bullish crypto market during the 2020 crisis.

Volatility is a key factor in both markets, as both the value of stocks and cryptocurrencies depend very much on several external factors, which include government decisions, mainstream media influence, etc.

In a nutshell, in both types of investments, there is always the chance things did not happen as planned. Thus, investors must be aware before investing their money, especially by preparing to withstand potential financial losses to some degree.

That said, choosing the best time to trade on the stock market is quite different from choosing the best time for crypto trading. The stock market follows a strict set of rules within a centralized environment, which includes the time when stock exchanges are active.

Usually, consistent investors need to dedicate at least two to three hours of their day to trading. Nonetheless, it is worth noting that this period should not be at lunchtime (mid-day), as the stock exchange normally loses liquidity during the period.

Generally, the best times to trade on traditional stock markets are at the beginning of the day (9 am to 11 am), when most markets start to heat up, and also close to closing markets (3 pm to 5 pm).


Is There a Best Time to Trade in Cryptocurrency Markets?

On the other hand, unlike the traditional stock market, cryptocurrency markets do not have to follow a strict set of rules, especially in terms of regulations and time available for trading.

Rather, cryptocurrency markets remain open 24/7 all year long. Plus, users can choose between centralized or decentralized exchanges to trade their digital assets.

However, even though most crypto traders understand that digital currency markets are open nonstop, it is easier to be exposed to good trading opportunities when global market activity is high.

There are periods in which the cryptocurrency market is too cold, especially outside specific trading hours. It may result in weaker exchanging rates, fewer profitable opportunities, and a hard time for those trying to sell their digital assets.

Many investors utilize time converter mechanisms to follow up the heat in global markets according to their local time zone. This way, they remain alert for any profitable opportunities when the trading volume increases at a specific time of the day.

Best Time to Trade Cryptocurrency – Searching for Accurate Data

LongHash is a well-known research platform that focuses on the acceleration of the development and understanding of blockchain technology. According to data from a Binance report made by LongHash, the most volatile time to trade Bitcoin is between 12 pm and 1 am (UTC).

Another study by Cryptowatch found that at 1 am (UTC), the crypto market has more drastic swings between higher daily rates and lower daily rates than any other time of the day.

Consequently, the study suggests that cryptocurrency prices have often seen their most intense swings during this specific period of the day. However, according to the same study, these parameters do not demonstrate that there is no right time to buy Bitcoin or any other cryptocurrencies.


As it is plain to see, there is not a definite answer when it comes to the best time of day for cryptocurrency trading, even though many people try and find a definite period of the day in which the most profitable opportunities seem to appear.

Empirically, crypto traders would be more likely to hit a daily low after a daily high when buying during the morning hours (from 3 am to 12 pm UTC), but the differences are not big enough to bring a definite conclusion.

Usually, the peak trading hours in US cryptocurrency markets are around 8 am to 4 pm, depending a lot on which state the trader/investor is located.


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