Curious about whether crypto markets ever have designated closing times? Unlike the stock market, which operates from 9:30 am to 4 pm Eastern with occasional holiday breaks, the crypto market doesn’t adhere to specific opening and closing hours.
With platforms like Current, you have the flexibility to trade virtual currencies 24/7.
The absence of fixed trading hours is appealing to many investors and traders, offering uninterrupted access to crypto assets.
Nevertheless, the lack of closing hours does pose certain risks and concerns.
The Cryptocurrency Market
The crypto market extends beyond Bitcoin and Ethereum, offering thousands of assets like virtual currencies, utility tokens, and meme coins on exchanges.
While most are high-risk, they can yield significant gains.
Despite crashes, such as Bitcoin’s history of over 50% declines, cryptocurrencies often recover and appreciate over time, suggesting the potential for future all-time high prices.
How Does Cryptocurrency Trading Work?
Crypto traders enjoy quick transactions due to high liquidity, similar to stock trading.
They capitalize on short-term trends for high returns.
While some wait for crypto values to rise before selling, others short, betting on declines.
Shorting is risky, with potential unlimited losses, unlike long positions where losses are capped.
Cutting losses is easier in crypto than stocks; crypto losses aren’t subject to the 30-day wash sale rule, allowing immediate repurchase without losing tax deductions.
This is especially beneficial for active traders with multiple investments and losses.
Do Crypto Markets Ever Close?
Associates within a central authority agree on the stock market’s hours of operation and holidays.
Cryptocurrency markets are decentralized and always remain open because of this structure.
Trading Hours: Crypto vs. Global Market vs. FOREX
Asset classes have different trading hours. We will reveal how crypto trading hours compare with other markets.
Crypto
Crypto markets never close. You can trade on them 24/7 on crypto apps like Current with access to a cryptocurrency exchange.
Global Markets
Global markets operate 24/7, but with varying opening and closing times across regions. For instance, the U.S.
Stock Market is open from 9:30 am to 4 pm eastern time, while the Tokyo Stock Market has a break from 11:30 am to 12:30 pm.
Investing globally provides continuous access to assets, though U.S. assets can only be sold during market hours, unlike assets tied to other global markets.
FOREX
FOREX markets follow a clear schedule with a weekend break.
Investors can trade FOREX assets from Sunday at 7 pm eastern to Friday at 7 pm eastern.
This structure does not provide an end-of-the-day break you would find in a stock market, but weekends are mostly clear.
Pros and Cons of Being Open 24/7
Are you considering entering the crypto market for its 24/7 hours? We will share some of the pros and cons of a market that never sleeps.
Pros
- Opportunity for earnings anytime: Cryptocurrency trading offers the flexibility to make money at the beginning or end of the day, catering to those with 9-to-5 jobs who might miss out on stock trades. Consistent monitoring of expenses and frequent investments can enhance overall returns.
- Immediate response to market news: Unlike traditional stock markets where negative information after closing leaves investors relying on luck, crypto traders can react in real-time to market news, seizing opportunities and avoiding potential losses. This applies to both negative and positive developments.
- High liquidity: Cryptocurrency markets operate globally, allowing traders to exit positions at any time, even when local markets are closed. This provides the advantage of a 24/7 market cycle, with traders around the world active during different time zones.
Cons
- Crypto trading can take up a lot of time: You don’t want crypto trading to take over your life. Since the markets stay open, some investors do not have an off switch.
- Volatility when you sleep: Your crypto can rise or fall overnight. Stocks maintain their prices overnight and change at the start of the day. Less regulation makes traders more likely to miss dramatic overnight price swings.
- Impulsive decisions: Weekends and closing hours give stock investors more time to think about their investments instead of making quick, emotional decisions. Having extra time to think can lead to better-investing decisions. You can step away from your crypto and think it over, but an open market makes it easier to act on your impulses.
Are There Certain Days or Times When It’s Better to Trade?
Every day presents opportunities, but some days are better than others.
Most traders are active on weekdays, with the best times between 12 pm and 2 pm eastern.
How Weekends Affect Cryptocurrency Trading
Weekends are less favorable for crypto markets since many traders step away and usually have less money to invest.
Weekend trading has several negative dynamics that can quickly turn into an uphill battle for traders.
Trading Volume
Even though crypto markets remain open on weekends, some investors still take time off.
Volume drops over the weekend as people take a break from trading, and this creates downward pressure on crypto prices.
While crypto can increase over the weekend, a reduced trading volume often makes it difficult.
Margin Trading
When crypto prices decrease, margin traders receive margin calls.
These calls force traders to liquidate some or all of their positions to cover margin debt.
Unfortunately, this forced liquidation floods the crypto market with additional sell orders, further hurting asset prices.
Liquidity and Hourly Mismatches
Banks close over the weekend, cutting off the critical funding source for most crypto investors.
Less money in crypto markets means less volume and the inability to pursue new investment opportunities.
Some crypto traders could not trade during the weekends even if they wanted to enter new positions.
Get Started Investing in Crypto
Crypto investing diversifies your portfolio, offering substantial returns for early investors.
Current enhances your financial position with products like 4.00% APY on savings pods and spending insights.
The app enables cryptocurrency trading, allowing you to build positions gradually.
Open a Current account on the website or mobile app.