Does Crypto Trade 24*7 Or Does Crypto Market Close?

Over the last few years or so, cryptocurrency has become a very popular investment asset for investors. Though cryptocurrencies are volatile, many investors find it very appealing to jump into the crypto bandwagon. Some of the popular crypto coins are Bitcoin, Ethereum, Dogecoin, etc. and there are many exchanges available where you can buy, sell or trade crypto coins. 

Crypto trading is different from conventional stock trading and unlike stock exchanges, the crypto trading market/platform remains open 24*7. Moreover, Stock markets are regulated exchanges while the cryptocurrency market is self-regulated. Another key aspect of the crypto trade is, the price of coins changes every minute. So, the pricing of crypto coins doesn’t depend only on trading.

What Is Cryptocurrency Trading?

A cryptocurrency is a type of digital currency which is a form of payment that can circulate without the need for a central monetary authority like the government. On the other hand, cryptocurrency trading is a process that involves buying and selling various crypto coins via an exchange. Crypto trading also involves speculating on price movements via a CFD trading account. Cryptocurrency trading can be done in 2 ways – 

1. CFD Trading on Cryptocurrencies

2. Buying and Selling Cryptocurrencies via an Exchange

1. CFD Trading On Cryptocurrencies

CFDs trading are derivatives and it allows the traders to speculate on cryptocurrency price movements without taking ownership of the underlying coins. Here you can go long (buy) if you think the price of the coin will increase or you can go short (sell) if the price decreases. To do CFD trading, you only need to put up a small deposit known as a margin. It will give you full exposure to the underlying market.  

2. Buying And Selling Cryptocurrencies Via An Exchange

You can also trade cryptocurrencies via an exchange. When you buy cryptocurrency using an exchange, you purchase the coins. Here, you have to create an exchange account as well as put up the full value of the asset to open a position. Then you have to store the coins in your own crypto wallet until you’re ready to sell.

How Does Cryptocurrency Market Work?

We, know that cryptocurrency markets are decentralized, so it means these markets aren’t issued or backed by a central authority such as a government. Instead, cryptocurrency markets run across a network of computers. Unlike many currencies, cryptocurrencies exist only as a shared digital record of ownership and they are stored in a blockchain. So, when you want to send cryptocurrency units to another user, you send them to that user’s digital wallet. The transaction process will be completed once the transaction has been verified and added to the blockchain through a process called mining.

Comparison Of Best Cryptocurrency Exchanges

Crypto Markets Trading Hours

Crypto markets remain open 24 hours a day, seven days a week. However, the levels of liquidity on the market can vary depending on the time of day. So, if you are trying to assess market movements then you might find it a bit difficult. In stock traders, traders usually compare the current share price with its position at the close of trading the day. But this is not the case for crypto trading. Crypto traders check the last 24-hour price trend to evaluate the market condition. As the crypto market doesn’t close, there is no start and close price of the cryptocurrencies. The information you will get is the price of the coin at 00:00 hours and another at 23:59 hours. Moreover, the cryptocurrency market operates at weekends, therefore, any price chart will look smoother. So, there will be sudden falls and rises in the price of crypto coins.

FAQs About Does Crypto Trade 24*7 Or Does Crypto Market Close?

References: 1 https://www.finder.com/crypto-markets-trading-hours-converter
References: 2 https://www.businessinsider.com/personal-finance/day-trading-crypto#:~:text=The%20crypto%20markets%20are%20open,a.m.%20to%204%20p.m.%20ET.