There are some benefits to trading in crypto over the weekend. This time is often quieter and less volatile, but some factors are worth considering before jumping in. Read on to learn about the three most important factors to consider when trading over the weekend. Here’s a look at the pros and cons of crypto trading during the weekend. It’s important to remember that prices can spike, and volume can be low or even non-existent.
Prices spike on weekends
There are a few reasons why cryptocurrencies spike in price over the weekend. Many investors don’t have the time to add new funds to their accounts during the weekend, so there’s less opportunity to add new money to their accounts. Also, the markets can be affected by spoofing, which is the process of faking buy and sell orders in an effort to create a false sense of demand and supply. Some experts say this may be speculation, but other sources have mixed views.
Less trading volume
When you trade cryptocurrency on the weekend, you face a few unique challenges. First, there’s less trading volume, which can mean more price volatility. Second, smaller traders are unlikely to add funds to their accounts. Third, because most people take weekends off, more money can leave their accounts over the weekend. And last, the price of cryptocurrencies can fluctuate even more, as investors are more reluctant to buy or sell during the weekend.
The crypto market typically suffers from high volatility on the weekend, when most asset classes are in holiday mode. In addition, fewer traders are active over the weekend, which makes the market more volatile. Moreover, the burgeoning crypto lending industry only increases the volatility of the market. When a coin’s price drops below a certain level, it is due to a margin call that the exchanges sell the currency and get back the money invested.
Joining a crypto trading signals group might sound like a good idea, but make sure that the group has a positive reputation. Find out who is the leader of the group and how long they have been trading cryptocurrency. You should also look for a high win rate (the ratio of positive trade signals to negative ones).
Best time of day to buy
Cryptocurrency prices fluctuate according to the flow of capital. Buying low and selling high are the two primary objectives of buyers. Hence, the best time to buy crypto is when supply is low and demand is high. During the 1 PM to 3 PM GMT overlap, buyers are likely to buy crypto at the lowest prices. On the other hand, rising demand is likely to send prices up. Traders should follow their technical analysis when deciding on a time to buy cryptocurrency.
Buying during business hours
There are a few advantages to buying cryptocurrency during business hours over the weekend. Cryptocurrency exchanges are open around the clock, so buying or selling will be cheaper. However, you should note that you’ll be subject to higher exchange fees if you use a credit card. For this reason, it’s generally better to transfer funds to your cryptocurrency trading account on Friday. However, this strategy is only profitable if you’re willing to wait until Monday or Tuesday.
Buying on a Monday
Investing in cryptocurrency on a Monday is a great way to take advantage of the week’s market volatility. With the stock market down 12% on Monday, cryptocurrency prices fell 12%. With more than two trillion dollars being lost in the space since November 2021, investors have nowhere to run. Here are some tips to make buying crypto on a Monday a profitable endeavor. Read on to learn more! Buying cryptocurrencies on a Monday is better than buying on Friday and Saturday.