Experts Reveal the Best Days of the Week to Trade Cryptocurrency and Which Days to Avoid
Trading cryptocurrency can be done at any time due to its decentralized and 24/7 nature. However, recent analysis shows that the timing of trades throughout the week can significantly impact trading outcomes, with certain days outperforming others in activity and possibly price movements.
When Does Cryptocurrency Trading Peak?
According to a recent Nasdaq report, the general trading activity among cryptocurrency traders starts to increase on Mondays and gradually slows down as the week progresses, with Fridays seeing much less action. The peak trading days tend to be Tuesdays through Thursdays, when market liquidity and trading volume are generally higher than at the week’s start or the weekend.
Why Are Midweek Days Better for Crypto Trades?
The increased activity from Tuesday to Thursday is believed to stem from traditional financial market rhythms influencing cryptocurrency markets. Many traders are ramping up their activity after the weekend on Mondays and easing off before the weekend on Fridays, creating a concentration of trading during midweek days.
These days can potentially offer better price discovery and narrower spreads, which can benefit both day traders and longer-term investors. For those looking to time their entries and exits, these midweek days present prime trading windows.
What Days Should Traders Avoid?
Fridays, Saturdays, and Sundays tend to have noticeably lower trading volumes and decreased market participation. Lower liquidity generally can lead to more volatile price swings or wider bid-ask spreads, making trades potentially more costly or risky.
Weekends in particular are characterized by reduced participation from institutional players due to traditional market hours and limited news flow, which can create unpredictable price movements.
Best Time of Day to Buy Cryptocurrency
While people can trade crypto at any hour, experts recommend buying early in the morning before the New York Stock Exchange (NYSE) opens. This is because prices have a tendency to rise as the day progresses, so entering before the typical market open can help buyers secure potentially lower prices.
Additionally, transaction fees on the blockchain network can fluctuate based on demand and traffic, so timing trades in less congested periods can reduce costs.
Summary for Crypto Traders
- Best Days to Trade: Tuesday, Wednesday, Thursday
- Days to Avoid: Friday, Saturday, Sunday (due to lower volume and higher volatility)
- Best Time of Day to Buy: Early morning before NYSE opens
Understanding these patterns can help cryptocurrency traders optimize their strategies, reduce risks from illiquid times, and potentially improve portfolio performance by aligning trades with periods of higher market activity and better prices.