Looking at history, the Crypto market observes large price fluctuations, mostly over the weekends and national holidays. Also, the negative reports that happen over the weekend tend to have a major impact on the market.
Let’s take a look at some examples. On November 16-18, 2013 (which was a weekend), the price of Bitcoin slid from $1,100 to $760 because of the news about China’s crackdown on Crypto exchanges. On a weekend in December 2017, Bitcoin’s price decreased from $19,000 to $13,000 because of the worries related to South Korean regulations.
Compared to traditional financial markets, the Crypto market never sleeps. It is open 24/7, 365 days a year, without any breaks. A market that is so agile and never stops, opens up ample opportunities for traders; it’s obvious that one question to pop into mind is, “Are weekends really the best time to trade Cryptos?”
Let’s find out the answer in this blog.
What is the best time to buy Crypto?
Equity investors employ various strategies to determine when to make trades on the stock markets, but Crypto trading doesn’t necessarily follow the same trading laws and patterns. Crypto buyers might purchase during specific times to acquire the best price. However, given the market volatility of Cryptos, it is extremely challenging to spot solid patterns and make informed positional decisions.
With tokens available at various prices, Crypto trading has much lower entry barriers than conventional asset classes. Many people have turned to investing as a way to boost ancillary income as a result of rising inflation. Others have also tried their luck with digital assets, attracted by the possibility of turning a modest investment into millions. Finally, because of FOMO (the Fear Of Missing Out), even some Crypto skeptics are now paying closer attention to the ongoing hype around Cryptos.
NOTE: People must use a Crypto wallet that can communicate with the blockchain that tracks Cryptos to purchase Cryptos. Using an online Crypto exchange platform is the simplest way to do this. There are numerous options; however, exchange rates can differ significantly. Be sure to take in all fees before purchasing Crypto.
The amount of processing power, energy, or number of transactions required to record your transaction on the distributed ledger known as the blockchain may also affect how much it costs.
Are weekends the best time to trade Crypto?
Fewer “smart trades” happen on the weekends, indicating that strategic traders are giving themselves a break. Companies and professional traders have less control over their capital when working hours are added. As a result, most transactions are dominated by trading bots and liquidity providers.
In a nutshell, the increase in volatility makes the market less appealing to some traders.
On the other hand, many traders adore fluctuating Crypto prices since it generates more trading opportunities that can result in significant profits. Moreover, DeFi is a popular trading platform where many people can test out coins that aren’t available on centralized exchanges. Also, a natural correction of the weekend price spikes during the workweek is expected.
If you’re fascinated by weekend Crypto trading, here are a few strategies you can consider.
Best Crypto trading strategies for Weekends
On weekends, you can consider volatility as your friend. You can gain leaps and bounds if you know how to tame it. The best part is that you may start by learning these strategies to profit from weekend volatility.
Scalping is a day trading strategy that requires rigorous TA (Technical Analysis) and discipline. Traders who wish to enter and exit the market quickly use the scalping technique. Scalping is a high-risk, high-profit trading method compared to other markets because of the volatility of the crypto market. Scalpers frequently make small, recurring profits from their trades. Their objective is to achieve small but reliable profits continuously.
Scalpers are experts at performing technical analysis and are well-versed in capital management and charting software.
#2 Buying the dip
Taking advantage of the current market decrease and anticipating a correction over the coming workweek, you may accumulate some blue-chip Cryptos at fantastic prices.
#3 Arbitrage trading
Arbitrage involves buying Crypto on one exchange and selling it on another. ‘Spread’ is the difference between the buy and sell prices. Trading volume and liquidity differences present opportunities for traders to make a profit. To use this strategy, a trader utilizes exchanges where there is a significant price spread for the Crypto they are trading.
Final thoughts: Is Weekend trading best for you?
Choosing the ideal time to trade can be challenging because Crypto trading happens all over the world and around the clock.
Finding out which days your transactions did well can be helpful, and looking at trends is just as crucial. Making notes and looking back on your previous trades and patterns of behavior might help you identify potential decision-influencing factors. Practice continuously until you can identify the elements of your strategy that are effective and those that are not.
Your overall trading strategy will ultimately determine your success in the crypto market. Keep improving your strategies. And, as always, do your own research.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.