Does the Crypto Market Ever Close?
Updated: Jun 1
Traditional markets like stock exchanges, commodity trading, etc are usually operating weekdays only, think of it like a 9-5 job give or take an hour depending on which market.
There is no stock exchange in the world that operates 24/7 and that creates a lot of buying and selling pressure at opening and closing times.
Major stock exchanges around the world operate in different time zones, so it's interesting to see traders shifting from one end of the world to the other following activity to find market opportunities.
However, overall, these operating hours create a hassle for the trader, and the disjunction between different geo-locations causes markets to react more at certain times than necessary due to limited opening hours.
Cryptocurrencies, or more so Bitcoin, which were the first to come into existence in the financial market in 2010, were not commonly known until around 2017 when the media really started to pick up on them during its Bull run. Back then Bitcoin had limited uses in trading, there was no real volume and to be honest, people that bought or mined this virtual currency didn’t really know what it was, what it could do or where it was going to go. Well, that was until 22nd March 2010, computer programmer Laszlo Hanyecz made history when he bought two pizzas using Bitcoin (BTC). He paid 10,000 BTC for two Papa John’s pizzas. Valued at $41 at the time. Today that will be worth well over 100 million US dollars!
Do Crypto Trading Markets Open 24/7?
Cryptocurrencies on the other hand are completely digitized and not dependent on one exchange. The blockchain networks on which these currencies are based also operate 24/7 with transparency and fair game.
These factors enable crypto traders to engage in trading round the clock, a feature missing from the conventional trading markets.
This is a groundbreaking feature that allows traders to benefit from different time zones while at the same time, not being required to close after office hours.
What are the Challenges of a Non-Stop Crypto Trading Environment?
Non-stop cryptocurrency trading does have its challenges.
This never-ending trading cycle means that you cannot afford a long period of time away from markets, especially in peak hours that do not synchronize with the rest of the world.
For example, in the United States, crypto trading is very popular and its daily activity lights up the cryptocurrency charts so every professional trader tries to align with us in timezones. The same goes with the European time zone, as a lot of trading happens during these times and traders do not want to miss an opportunity to make a profit.
There really is not so much choice, you need to be watchful of the market as day trading goes. You can, however, automate your cryptocurrency trading. Yanda is the best crypto bot for all levels of traders where you can automate 24/7 successfully.
Conventional traders operating in markets around the globe need to do this too. But, it is always a choice. A person may or may not trade in multiple exchanges and keep switching his/her investments around and may focus on one big exchange only.
There is no such choice in cryptocurrency trading as Bitcoin and other cryptos are being traded round the clock and the price is affected simultaneously by trading activity around the globe. So, keeping track of digital currencies round the clock is quite challenging and may end up taking much more time rather than a conventional 9-6 operating exchange.
Every new financial market in the world requires some adjustments from traders and cryptocurrency trading is no different. The 24/7 trading feature is a challenging proposition for anyone and investors may need to analyze the risks and opportunities here.
It is obvious that 24/7 trading does offer much more opportunities than any time-limited conventional exchanges. Due to the success story of cryptocurrency exchanges to offer these continuous trading experiences, many of the conventional exchanges are now also offering off-hours trading facilities, but with some additional risks. Some even allow weekend trading opportunities and that is a welcome addition.
With the anniversary of Covid-19 not so far away is also likely to speed up this process too and traditional markets may soon rise up to the challenge and try 24/7 trading.