In my few years of experience in trading crypto, I have actually come to discover that when you are trading crypto, you can not actually afford to trade in ignorance. These are some of the things that really affected me in my early days in trading. One of the things I have come to understand about the crypto trading is the fact that even though it was like unlike the traditional financial market, crypto works 24/7 but even with that, not all hours can be traded equally.
What do I mean by that? There are some hours that we need to understand the peak periods and when you understand this, it also helps both the beginners and the experienced traders and this is something little things a lot of traders did not known that make them not to be strategic in decision making. If you want to understand some secret hours during the day that is best for you to trade, there are some of the things you need to pay attention to which I will be talking about briefly.
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The first is for you to actually understand the market overlaps. I have come to discover that the crypto market is actually influenced by time zone and that is why you need to study and understand how market overlaps works. In some part of the world, the crypto market is volatile and in some time zone, it is less stable. This will help you to understand how best you can use the trading volume and the liquidity to your advantage the best.
Now when you are able to study the market overlap I talked about and you are actually been able to also know the trading hour that have high liquidity, it will help you massively to know how you can use it best for you advantage. What do I mean by that? Whenever there is high liquidity in the market based on my own personal experience, I have come to discover that it gives a much more better trading condition for me. I will be able to buy and sell easily without the price not really that being affected and that will reduce the slippage on my behalf.
Now I don't really know about others, but I personally always prefer to trade when there is less volatility and there is a reason for that. Well if you are a master of volatility, it is something you can actually convert for your own best advantage but just that something I have noticed about volatility is the fact that it can be an opportunity and at the same time can also be a risk. For some trader, they prefer to trade when the market have less Volatility and for some people, it is vice versa. In any other way round, it is better to actually know and study the trading hour and that will best help you to know which hour you should go for based on your Volatility state preferences.
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For some people during the weekend, that is when they love to trade the most. Well I also love it but not everytime. When you are able to master your own personal trading hour, you will be able to know whether you will love to trade weekend or not. I know some trader that does not like to trade during weekends and I know some trader that loves to trade during the week.
Every trader in the crypto space is actually different as that is what I have come to notice. The way a trader that is a scalper works is different from the way a swing trader works. You can now tailor your strategy based on your clock. What do I mean by that? You will be able to know the one that you will trade. For people that are actually busy probably because of their working schedule, you can find hours of trading that will not affect your trading session. These are some of the little details that some of us did not actually pay close attention to.
At the end of the day, I guess I was actually able to answer the big question of what is the best time to actually trade for crypto. Well you can now see that it depends on your personal trading goals, your risk tolerance and generally your trading style probably you are the type that love risk or you are the type that hate risk trading. Everything contribute to the hour you will choose best as your trading hour. You will need to have a trading strategy for you to beat understand when and where to trade. Did not just make strategy because you saw other people picking that trading hour. Pick your own trading hour by yourself.
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