When is the Best Time to Trade Crypto?
People are always asking, “When is the best time to trade crypto?” as if the universe is just waiting to reward them for waking up at 3 a.m. on a Sunday. I get it—unlike the stock market, which politely closes so you can eat dinner, crypto just sort of…goes. It’s 24/7/365, a casino that never turns off the lights and doesn’t even bother serving drinks.
But alas, there’s no enchanted hour when Bitcoin rains money, at least not reliably. What you do get is a bunch of shifting patterns—liquidity ebbs and flows, volatility spikes and slumps, and trading volumes do this weird dance depending on what time it is in Tokyo or New York. The trick isn’t to find “the” best time, but to figure out when the market’s quirks line up with your own trading quirks.
So let’s have a look: I’ll walk through how trading patterns change with the clock, why global financial centers matter, what higher or lower volume means for your trades, and which tools might actually show you what’s going on.
Best Time to Trade Crypto: Weekday vs. Weekend Trading
One of the most noticeable patterns in crypto trading activity is the difference between weekdays and weekends. Generally, weekdays tend to see higher trading volumes and liquidity compared to weekends.
This is largely because most traditional financial institutions and professional traders operate during standard business hours, Monday to Friday. Their activity often spills over into the crypto markets, leading to more participants and deeper order books.
Conversely, weekends can be a bit trickier. With many institutional players offline, liquidity often thins out. Lower liquidity means that larger trades can have a more significant impact on prices, potentially leading to increased volatility and slippage, as well as wider bid-ask spreads. This can make entering and exiting positions at desired prices more challenging and possibly more costly.
Generally, weekend price movements should be viewed with caution. Some traders go as far as to say, "Never trust the weekend," implying that price action during these lower-liquidity periods might not always reflect the market's true underlying sentiment and could be more susceptible to manipulation or short-lived spikes. However, for some short-term traders, this increased weekend volatility can present specific opportunities, provided they manage their risk carefully.
It's also worth noting that historical data sometimes shows specific days of the week with particular return patterns, though these can change with evolving market dynamics and should not be solely relied upon for trading decisions. For instance, an analysis has shown Mondays to exhibit strong positive returns as the traditional workweek begins, while others point to mid-week days for heightened activity.
The Impact of Local Trading Hours
Crypto’ global, open, and decentralised nature means that trading activity is influenced by the business hours of major financial centres around the world. While the crypto market itself is always open, the activity levels can ebb and flow as different regions "wake up" and "go to sleep."
The opening of major stock markets often correlates with increased crypto trading volume. For example:
Asian Trading Hours (around 00:00 to 08:00 UTC): Activity often picks up as markets in Tokyo, Hong Kong, and Singapore open. Historically, this session played an even more dominant role, but its influence remains significant.
European Trading Hours (around 07:00 to 16:00 UTC): As European financial centres like London and Frankfurt come online, liquidity and volume tend to increase further.
US Trading Hours (around 13:00 to 22:00 UTC): The New York market open often brings the highest levels of trading activity and volatility, particularly during the overlap with European hours.
The periods when these major trading sessions overlap are often considered "golden hours" for crypto traders. The London-New York overlap (roughly 13:00 to 16:00 UTC) is particularly noteworthy, frequently exhibiting the highest trading volumes and liquidity.
This heightened activity can lead to tighter spreads and more reliable price movements for traders. Conversely, periods when only one major region is active or during transitions between sessions might experience thinner liquidity.
Trading Crypto During Low-Volume vs. High-Volume Periods: Pros and Cons
Trading activity isn't static; crypto markets experience periods of high trading volume and periods of low volume. High-volume periods typically coincide with major market hours, news events, or strong market trends. Low-volume periods often occur during off-peak hours, weekends, or holidays. Each presents unique advantages and disadvantages for cryptocurrency traders:
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Tools and Indicators to Observe Market Activity
To gauge crypto market activity and make more informed decisions about when to trade, several tools and indicators can be invaluable. These platforms provide insights into digital asset trading volumes, price trends, market sentiment, and on-chain data:
TradingView: A popular platform for offering advanced charting tools, a vast array of technical indicators, and social networking features for traders. It allows users to analyse price and volume across multiple timeframes for numerous crypto assets.
CoinGlass: Specialises in cryptocurrency derivatives (e.g., crypto futures) data, providing insights into open interest, funding rates, liquidations, and long/short ratios, which are crucial for understanding market sentiment and leverage.
CryptoQuant: An on-chain data analytics platform that tracks metrics like exchange inflows/outflows, whale activity, and miner behaviour, offering clues about potential supply and demand shifts.
Glassnode: Another leading on-chain analytics provider offering a deep dive into blockchain data to understand network health, investor behaviour, and market cycles.
VALR: VALR's own trading interface provides real-time price charts, order book depth, and trade history, allowing users to directly observe activity for listed pairs.
Beyond these platforms, specific technical indicators are commonly used to assess market activity and potential trading opportunities:
Trading Volume: Simply shows the amount of an asset traded over a specific period. High volume during a price move often confirms the strength of the trend.
Moving Averages (MA): Smooth out price data to help identify trend direction. Crossovers between different MAs (e.g., 50-day and 200-day) can signal potential trend changes.
Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements, typically used to identify overbought or oversold conditions.
MACD (Moving Average Convergence Divergence): A trend-following momentum indicator that shows the relationship between two moving averages of an asset's price. Crossovers can indicate buy or sell signals.
Bollinger Bands: Consists of a middle band (a simple moving average) and two outer bands set two standard deviations away. They help identify volatility and potential price reversal points.
On-Balance Volume (OBV): A momentum indicator that uses volume flow to predict changes in stock price. It can confirm price trends or indicate potential divergences.
Finding Your Optimal Trading Window
Ultimately, the "best" time to trade crypto isn't universal; it depends heavily on your individual trading strategy, risk tolerance, time availability, and the specific cryptocurrencies you're interested in. While understanding global market overlaps and liquidity patterns provides a valuable framework, observing how markets behave and how your strategy performs during different periods is key.
Tools and indicators can help you monitor market activity, but successful trading also involves self-awareness. Aligning your trading sessions with your peak mental alertness and avoiding emotional decision-making during highly volatile periods can be just as crucial as market analysis. By combining market knowledge with personal discipline, you can better navigate the crypto market.
Ready to put your knowledge into practice? Explore the markets and charting tools on VALR.
Frequently Asked Questions
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The best hours to trade crypto are typically during periods of highest market activity and liquidity, especially when major financial centers overlap. In particular, the London-New York overlap (around 13:00 to 16:00 UTC) often sees the highest trading volumes and liquidity, making it a favorable window for many traders.
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Yes, the timing of trades can matter. Weekdays generally have higher trading volumes and liquidity due to the presence of institutional traders, while weekends often see thinner liquidity, higher volatility, and wider spreads. Trading during high-volume periods makes it easier to enter and exit positions and can provide more reliable price movements.
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Crypto prices do not consistently drop on weekends, but weekends often feature lower liquidity and higher volatility, which can result in sharp price moves or short-lived spikes. Weekend price action may not reflect the broader market sentiment and can be more susceptible to manipulation or erratic swings.
Risk Disclosure
Trading or investing in crypto assets is risky and may result in the loss of capital as the value may fluctuate. VALR (Pty) Ltd is a licensed financial services provider (FSP #53308).
Disclaimer: Views expressed in this article are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.
