When is the best time to trade Crypto? Is it when volume is up, before bed, or any other time of day when the market has signals? Actually, there is no such thing as a perfect answer.
The following article will explain to you why traders are often online very late and what is the best time frame for day trading crypto as well as the meaning of choosing a reasonable trading time frame.
Table of Contents
Why should you look for a trading time frame?
Finding a good time to trade coins will bring traders a lot of benefits. Here are the reasons why you shouldn’t miss figuring out the right time to buy and sell coins.
Optimising the price to invest coins for taking high profits
After all, the fact that we invest coins is also for the sake of profit. Therefore, getting a high profit is always the dream of all traders. However, can we buy or sell coins at any time? The answer is obviously “No”. Because we can only optimise our profits when we choose the time to buy coins at low prices and sell coins at high prices.
If you have ever traded coins or are interested in learning about investing in coins, you will find that in fact, the prices of all coins are constantly fluctuating. This fluctuation is not only calculated by month, year but also in the trading session of the previous day with the next day, even within the same day. So, if you catch a good time to buy and sell, even if it is day trading, you will get a much higher profit.
Make transactions more convenient
Choosing a good time to invest in coins also makes your buying much more convenient. In trading coins, buying in bulk is not always advantageous.
Many times you place a buy order at a time when there are too many transactions, so you have to wait a long time for your trades to be completed. Then there will be many situations that arise such as the number of coins you want to buy is not enough or the good time has passed. Therefore, choosing the right time plays a very important role in determining success.
How to determine the trading time frame of buying and selling coins
To determine a good time to trade, I have a few suggestions:
The moment of peak performance
Everyone has a time of day when their performance is at its peak, called peak performance. This is different for each person. Why should you trade during your peak performance? The reason is very simple: trading when you are tired or not smart enough will be a disaster. Then emotions will be more volatile, judgement less accurate.
For me, the best time is in the morning, when I have completed 1/2 of the day’s work and have free time to wait until the afternoon work time. That’s when your decision will be the most correct.
Determine the time frame where the price is always low
You need to review and research coin prices for a fixed period of time from at least the last 3 consecutive years. Determine what time frame the coin price is usually at the lowest and highest.
Of course, there is no such thing as an exact or perfect number because the market is always volatile. It’s all relative.
Determine the right time to buy or sell
Currently, cryptocurrency investors often use technical patterns of head and shoulders, wedge and cup. These are three simple and easy-to-follow technical analysis patterns for novice traders.
However, industry experts also recommend that traders should not only rely on technical models, but also analyse other data such as market sentiment, major economic – political events, etc. .. to make the most optimal investment decision.
What timeframe should I trade?
The best time frame for day trading crypto based on the monitoring and use of technical analysis models, many experts point out that between 3pm and 24h daily, the price of cryptocurrencies is significantly lower than the time frames. other. This is because in the early morning of the day, the market is usually quite active with the latest updated information, so it attracts investors. However, in the afternoon cryptocurrencies are available for trading and prices are usually better than in the morning for you to consider buying.
Best trading time frame of the week
According to financial experts in the field of crypto investment, the best time to buy during the week is Sunday and Monday. It is also known as the “Monday effect” or the “Weekend effect”.
Accordingly, the average return on the market on these two days is lower than the average return on the other days of the week. This is explained by a large amount of bad news that is usually released at the weekend.
Investor sentiment on Monday is often worse than on any other day. Due to the gloomy mood when it comes to getting back to work, the average return is negative. This phenomenon is related to investor behaviour and psychology.
Conversely, if you are wondering when to sell your coins, do it on a Friday. Given the week’s movements, the market is usually in an uptrend, peaking on Friday. Therefore, selling on this day will help optimise your profits.
Best trading time frame of the month
According to my experience and also shared from those who have gone before, you should not buy coins in the middle or end of the month. Because this is the time when employees at enterprises are paid and they will be more inclined to invest. Therefore, at this time, transactions in the cryptocurrency market often increase, along with the coin price is likely to be higher.
Therefore, the best strategy is to buy your favourite coin at the beginning of the month and sell it at the end of the month. That way, traders can take advantage of monthly price fluctuations and make substantial profits.
Investor sentiment on Monday is often worse than on any other day. Due to the gloomy mood when it comes to getting back to work, the average return is negative. This phenomenon is related to investor behaviour and psychology.
Why do traders often stay up late?
The simple reason may lie in the best time to trade and focus.
The European session time usually brings favourable waves, less interference for traders and higher liquidity. And for long-time traders, they will certainly know that the Asian session market is often difficult to analyse and the liquidity level is not as high as the European session.
Similarly, most people have a biological clock that is more focused at night than programmers. From there will lead us to creative and highly accurate analytical ideas.
Conversely, if you are wondering when to sell your coins, do it on a Friday. Given the week’s movements, the market is usually in an uptrend, peaking on Friday. Therefore, selling on this day will help optimise your profits.
Conclusion
Above I have shared with you the best times to trade crypto by day, week and month. As with other markets, there is no single method or software that can predict the perfect time to buy and sell crypto.
So always keep alert in all thoughts and actions. Don’t let the pressure of money being invested influence your judgement – “If there is a winner, there will be a loser on the other side”.
