Can you Trade Crypto on Weekends? Let’s discuss
The crypto market is among the largest financial markets. Daily, so many people enter the market to make good money. Still, many crypto enthusiasts have some doubts before getting started.
In this Market Investopedia blog, we will discuss the most common query, “Can you Trade Crypto on Weekends?” Also, we will find out if it is good to trade on weekends and tips to do so.
Can You Trade Crypto on Weekends?
Yes, you can trade crypto on weekends. Unlike the stock or forex market, the crypto market allows you to trade on weekends. Crypto is a 24/7 market where you can buy or sell digital currencies around the clock this includes trading popular assets like Dogen crypto, Grovex crypto, or even watching the next crypto to explode over the weekend.
You can trade cryptocurrencies anytime, but is it a good idea to trade digital assets on weekends? Well, that’s what the real question is.
In the trading world, especially the highly volatile crypto market, crypto trading hours and timing play a crucial role. Weekends make crypto trading a little more difficult. That’s the reason why most traders avoid trading digital currencies on weekends.
A quick glance
Never. The crypto market remains open for 24 hours and 7 days.
The crypto market remains open around the clock. Even on weekends, the crypto market is open for trading activities.
Open an account with a broker to access digital coins to buy or sell them.
No, you can trade stocks within the active hours of the stock exchange. Even the CFD stock market is closed on weekends. So, you cannot trade stocks on weekends.
Key Features of the Crypto Market on Weekends
Crypto trading is the same whether it is on weekdays or weekends, but the market conditions are not. If you are thinking of starting cryptocurrency on weekends, here are the elements you need to know:
Holiday Effect:
A term holiday effect is quite common in the trading world. It means that due to weekends or holidays, the market conditions will be different. And in such a scenario, most traders will not remain active. So the holiday effect will be there if you want to trade crypto on weekends.
Low Volume:
In the trading world, the more trading activities, the better the market. But as compared to weekdays, the trading activities or volume are low on weekends. So you may not be able to open or close trades at the desired price. Also, delays and gaps are common during this time. That’s why traders who follow best time to trade crypto in US trends may often avoid weekends.
Increased Volatility:
Cryptocurrencies are already quite volatile. And when trading on weekends, the volatility further increases. Volatility is basically the rate of price swings over a period. More volatility means aggressive price movements, which result in more risk and rewards. This becomes even more relevant during a bull run crypto scenario.
Unpredictability:
Financial markets like crypto are already unpredictable. And on weekends, the unpredictability and uncertainty can further increase. So identifying whether to go long or short can be a complex task. People often ask does crypto market close or if there’s any break — the answer is no, but the risk increases.
News and Events:
The Stock and forex markets are closed on weekends. However, news and announcements are all there even on weekends. Thus, other assets start reacting on Mondays or when the market opens. But with crypto, the digital asset reacts instantly to weekend market dynamics. These quick reactions can even make niche tokens like Topper crypto or IIS crypto spike suddenly.
Tips on Weekend Crypto Trading
Trading crypto on weekends is not a bad idea when you know some tips. Here is what you need to follow for maximum results:
Grab Market Knowledge:
Weekend traders are not like normal traders. They need to deal with much more risk and uncertainty. Thus, their understanding of the market should be much greater than other traders. So, grab a proper understanding of the crypto market for better results. If you’re following insights from an influenceur crypto français, make sure they align with real market data.
Trade Less Risky Assets:
Weekend trading is already risky, and in cryptos, with changing market conditions, the risk further increases. Thus, weekend traders should give priority to Bitcoin, Ethereum, and Binance over highly risky memecoins or altcoins such as Dogecoin, Pepe, or Bonk. For example, trading Dogen crypto might be appealing, but its volatility can be dangerous during weekends.
Short-term Trading:
Weekend trading works well for short-term traders. Also, volatility is comparatively higher on weekends. So it is beneficial if you open or close a trade within a day. Those who follow chain block activity often use this method to track smart money moves over the weekend.
Use Risk to Reward Ratio:
Never trade without placing the take profit and stop loss levels on weekends. This will help you in locking your profits and limiting the losses. You can set the take profit and stop loss as per the risk-to-reward.
Practice Demo Trading:
Before trading live on weekends, make sure you have a demo trading experience. For the initial weeks, place some demo trades on weekends. Analyze the results, and if it works for you, go ahead with real trades. Learning the CTO meaning in crypto and risk parameters is crucial before entering weekend volatility.
When To Avoid Crypto Trading On Weekends
If you don’t have any experience in weekend trading, then avoid trading on real markets. First, try demo trading, then start real trading.
If you have just started crypto trading and lack market knowledge, then it is better to avoid weekend trading.
In conditions like the chances of wars, elections, or the release of any impactful event, avoid trading on weekends.
When the spreads are wider on your broker platform, avoid trading as the trading cost makes a significant amount.
When you don’t have the ability to tackle mental stress, you can avoid trading on weekends.
Also, if you’re unsure is crypto haram, you may want to consult your religious guidelines before entering trades, especially during uncertain times like weekends.
Wrapping Up: Is it a Good Idea to Trade Crypto on Weekends?
Yes, weekends can be good for trading. Most people only have time to trade on weekends. The crypto market is open on weekends, which means people trade on weekends.
Best time to trade crypto often depends on your strategy, but weekends may not be suitable for all traders. But if you have proper knowledge, understand risk management, and love to trade liquidity or volatility, then weekend trading is surely a great option.
Want to learn practical strategies for Weekend Crypto Trading?
At Market Investopedia, we offer comprehensive webinars on crypto trading by experts. So if you are looking for actionable strategies, connect with us now.