While the cryptocurrency world might seem overly complex, there are still some fundamental aspects of trading that you should know before you start buying coins or investing in projects. One of these basics involves the hours during which you can make trades and transfers of assets.
How the Crypto Market Works
According to the experts at SoFi, “exchange is a platform that brings together buyers and sellers of digital currency.” There are two types of exchanges based on their functions; some exchanges allow only buying or selling, while others also support trading between different currencies.
Some exchanges provide services to traders, allowing them to execute trades themselves. Other exchanges are more like traditional stock markets and allow investors to buy from a list of pre-approved traders. The differences between these two approaches have significant implications for your portfolio. So be sure you understand how an exchange works before you open a bank account with SoFi to start trading on it.
What Are Cryptocurrency Trading Hours?
Different cryptocurrencies, such as Bitcoin and Ethereum, have different trading hours. Some are open 24/7; others are only open for a few hours per day. Sometimes exchanges might even halt trade for a few days at a time due to unforeseen circumstances, leaving those who want to buy or sell stuck in limbo. Therefore, it’s important to check what times your cryptocurrency is available before you start trading. Understanding these cryptocurrency trading hours will help you make smart investment decisions that are right for you.
The Advantages of Trading During Off-Peak Hours
Adding a SoFi bank account with cryptocurrencies to your portfolio is one of many options to help you earn more money. There are five time zones in which cryptocurrency trades take place each day.
- The first cryptocurrency trading hour of each day is where your country’s respective time zone is in effect.
- The second crypto trading hour is during Europe’s session between 11 a.m. and 5 p.m. when European-based traders can trade cryptocurrencies.
- The third cryptocurrency trading hour occurs between 5 p.m. and 9 p.m.
- The fourth cryptocurrency trading hour each day is when Asian-based traders can trade their digital assets.
- The fifth cryptocurrency trading hour is between 9 p.m. and 3 a.m., where U.S.-based traders can trade digital currencies.
It’s important to learn about cryptocurrency trading hours so that you know when it’s best to make transactions, whether you’re doing business online or participating in an in-person exchange with another person or business entity.
Understanding the Difference Between Fiat Currency and Cryptocurrency
Many people who invest in cryptocurrency believe that it is similar to fiat currency, but there are some pretty significant differences between them. Here are some main ones: fiat currency can be physical or digital, and cryptocurrency (like TeslaCoin) can only be digital. Fiat currency has a value based on what people think it’s worth.
The cryptocurrency market can be volatile. As a beginner trader, there’s no better time to get started than now.
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