The best speculators have the edge and can beat the markets because they have a few characteristics that are different from beginners. These people usually have the right knowledge, the experience, and other aspects that add value to their trading lives.
One of these important aspects is when people should start to trade bitcoin? What is the best time to do so each day or over each week?
But why does time matter so much? The reason why time matters a great deal is because the markets are all about time. There are those who think about timing, then time in the market, and when most people are at their peak trading opportunities.
There is a lot of value when people come together at a particular time to participate in specific markets. Time means more these days because buying bitcoin is really simple now as fintech companies ranging from Square and entities such as Coinbase and EXMO. The buying headaches are mostly gone and that means that one can have more activity or more value over time.
Further, these entities are looking at becoming staying entities in the digital asset domain and are deploying modern applications to let users trade when they want to do so. These firms realize that simplicity brings about more action and concentration in value. The added convenience can bring about more people who seek to gain profits over time.
Let’s find out more about the best time to participate in the markets.
Wild Times
To reiterate, the reason why you want to think about the best times to trade bitcoin is because you want to make sure you take advantage of the situation in the best way possible. Bitcoin moves around in a wild way but that doesn’t mean that you can’t capitalize on these leading digital asset markets.
The best times to trade bitcoin will vary depending on geography and the actions of the market participants can change based on the current events as well. That is why we can not always see the same patterns but they generally take place.
It is important to state this fact of gyration and change because that is the only constant in the markets and in life. The point here is to expect the unexpected.
With that in mind, here are the best times to take action based on the recent history.
High Activity Time Period
Asian speculators in the digital asset market are quite active on a regular basis but that doesn’t quite explain why mornings in Asia experience substantial amounts of activity. Specifically, from around one to seven GMT is when we notice a good portion of activity in the markets.
Maybe a good portion of activity takes place in the morning because Asia is a vast area with a wide variety of socio-economically privileged individuals who speculate in the digital asset market.
It is a known factor that Japan, South Korea, North Korea, China, and even the Philippines are places of great crypto concentration. These places either have a mixture of hackers, builders, companies, and speculators or exclusive parties that participate in the markets. It is important to remember that they might do so in a direct or indirect fashion.
Their participation in the markets were seen in 2017, and 2018, in many different ways. First, there are the speculators, then there are the legislators, who would work in tandem in a sort of inverse manner. That is why people are interested in what South Korean traders and their respective legislators do as it has had some on bitcoin, ether, ripple, and others.
News from these markets spills over and can move the markets on the whole. Banks also open at a specific time frame in the mornings and this can have a snowball effect on good news and bad news.
People may start around 2 GMT to make sure that they minimize significant shocks to their portfolio in that timeframe. But the important point here is that one can acknowledge this intense activity during this time and strike within the liquid market.
What does that mean for you? Great buying and selling potential that is present therein.
A few hours later, the European speculators are ready to face their day and may take positions based on what happened in Asia. Furthermore, we might see that they go their own way and make their plans. Europe might not have a large portion of activity but we know that it will be more confusing and less straightforward.
The lack of predictability here is the problem but that is also a moment for opportunity.
Moderate Action and Chaos
The next segment of activity will take place in the European arena during the hours of 9:00 to 16:00 GMT. Americans will only be awake during a portion of this time. Those in more concentrated and developed realms such as Forex understand that there might be a little more than moderate activity during these times because of the intersection between Europe and the United States.
Remember that American markets will start to rumble around thirteen and fifteen GMT. The Western world will start to collate and distribute news that might make significant waves in the market.
News present during this time can really rock the markets or have no effect depending on the situation. Now, that is how it works in the Forex segment and it does have some spill over or parallels into the digital currency market. But usually people see that Asians decrease their activity, and Americans slowly start to pick up the baton in New York and other cities in that region of the United States.
Sure, news will continue to be a strong factor here but it will likely not have as much impact in most trading periods due to the activity hammering home during Asian time.
Then we move to the last part of the trading day within the United States where we focus on the West Coast.
Calm Before or After the Storm
Now, much of the activity is concentrated on the West Coast as they are awake and are facing the day. But by the time they are up, about and active, much of the activity has died down but it doesn’t mean that activity comes to a complete standstill.
If you recall, we are post sixteen GMT now and people are coming to terms with all of the activity that took place in the prior hours. They will factor in new pieces of information as it occurs too. But a good portion of this movement will take place in the technology-oriented section of California.
More Quiet
Then we are going into the mid to latter hours of the day in the western hemisphere. That means that we see the last flickers of the day as people are processing what else is left and making their trades accordingly.
Many people do not see trading value during this time in most cases. That is why they can use this time to plan for the future. Most traders will not see any crazy downside or upside movements in this timeframe.
The idea is that this is when you plan for what is going to happen a few hours from now. Risks are likely to rise only after the cycle goes right back to starting with the Asian market waking up again and executing actions.
Now, remember that this whole cycle takes place during the weekdays. Let’s find out what happens during weekends.
Closing out the Week
Danger still lurks over the weekends. Guess what? Danger is where the opportunity can be because of the wild swings that might occur. Traders might see wild movements during this time and can capitalize on the opportunities that the market presents by selling short, or setting up buys for specific price points.
Of course, what will move the markets in this time is compelling news (usually). Surprising events might occur but as the markets become more stable over time, it is less likely to happen. Yet, the weekends do present some opportunities to capture gains in the market at the right times.
Watch for times of minimal liquidity due to lack of action (another opportunity to capture value in arbitrage due to spreads and gaps in the market).
Never let your guard down over the weekends. But you might want to take a look at the markets around three and twenty three GMT.
That is an overview of the markets as it stands today.
Bonus
Market activity might slow down over the weekends making it to where there might be more opportunities to pick up bitcoin at a low price toward the last day of the weekend.
Sophisticated traders might look at the market and think that they will sell when regular office workers and general employees get paid. Why would they do that? It is simple, they think that these people will pump the markets because they will buy when they get paid.