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Trading cryptocurrencies can be wild, but sometimes too wild. A significant amount of crypto trading takes place in South Kore, and so does a lot of news that moves the markets.
The action, driven by regulators in Seoul, by crypto-exchanges, or by other market-moving events, can be wild in the first hours of the morning and more specifically, just as Korean banks open at local time which is GMT. Starting a trading session an hour later reduces the risks of jawdropping gaps on the charts or any shocking news that may send prices down or up within seconds.
Nevertheless, the high volume of trading during working hours in Korea and Asia in general, provide a good environment for two-way action. At GMT, European traders get ready for the day, and they may examine events in Asia and perhaps take a different view. While we may have trading opportunities also at these times, moves may be somewhat less predictable. Forex traders know that these may be the busiest hours and that the release of American news around and GMT can be perilous. But in the world of virtual coins, these hours can consist of lower volume when Asians slow down in the evening and Americans are mostly awake only on the East Coast.
The news may flow, and so prices of coins may fluctuate, but there is a lower chance for nasty surprises. Everything that has happened beforehand is digested, and new developments may arise. A significant part of the activity in virtual currencies occurs in the Bay Area. For some, it may be too calm to provide trading opportunities, but the risk of unpleasant surprises is also diminished.
Closer to the Asian morning, as Australia and New Zealand, wake up, there may be additional action, but the risk of surprises jumps only when the cycle reaches its completion and Koreans are busy once again. Trading in cryptocurrencies differs with forex in that markets are open also on the weekends.
During Saturday and Sunday, we may again see high volatility, but shocking moves depend more on surprises. In general, there is a higher chance of surprises when Asia is awake. In general, the trading volume may be somewhat lower, and air pockets can appear due to low liquidity.
Caution is warranted at all times on the weekend, but to GMT may be a wiser time to trade. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.
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Markets await a fresh catalyst for a range breakout. BOE expected to hold rates steady in year-end meeting. Brexit turmoil hits pound despite Tory victory. Gold edged higher on Thursday, albeit lacked any strong follow-through and remained confined well within the recent trading range. Follow us on. Here are the times to trade, starting with weekdays: Very busy but not that risky Asian morning, but not too early: to GMT A significant amount of crypto trading takes place in South Kore, and so does a lot of news that moves the markets.
Medium sized action when the focus is elsewhere European mid-morning to the American mid-morning: to GMT Forex traders know that these may be the busiest hours and that the release of American news around and GMT can be perilous.
Weekends - Warnings around Asian times still apply Trading in cryptocurrencies differs with forex in that markets are open also on the weekends. Latest Forex Analysis.
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Bitcoin is intrinsically volatile due to many factors. As a result, cryptocurrency exchanges are already taking precautionary measures. However, as of this writing, Bitcoin does not yet have a generally accepted index. Bitcoin futures trading is. George asked Hayes whether volahile markets will help the ecosystem and smooth out volatility.
Price fluctuations in the Bitcoin spot rate on the Bitcoin exchanges is driven by many factors. News events that scare Bitcoin users include geopolitical events and statements by governments that Bitcoin is likely to be regulated. Bitcoin's early adopters included several bad actors, producing headline news stories that produced fear in investors. Others include the high-profile use of Bitcoin in drug transactions via Silk Road that ended with the FBI shutdown of the marketplace in October However, Bitcoin-friendly investors viewed those events as evidence that the market was maturing, driving the value of Bitcoins versus the dollar markedly back up in the short period immediately following the news events. One reason why Bitcoin may fluctuate against fiat currencies is the perceived store of value versus the fiat currency. Bitcoin has properties that make it similar to gold. Since that differs markedly from fiat currency, which is managed by governments who want to maintain low inflation, high employment, and satisfactory growth through investment in capital resources, as economies built with fiat currencies show signs of strength or weakness, investors may allocate more or less of their assets into Bitcoin.
Bitcoin Volatility Time Series Charts
Bitcoin is intrinsically volatile due to many factors. Tradung a result, cryptocurrency exchanges are already taking precautionary measures.
However, as of this writing, Bitcoin does not bitccoin have a generally accepted index. Bitcoin futures trading is. George asked Timmes whether futures markets will help the ecosystem and smooth out volatility. Hayes replied:. Initially, because of the bifcoin these contracts are structured, they will actually increase the volatility of Bitcoin.
In fact, Bitcoin http://trackmyurl.biz/the-truth-about-bitcoin-trading-15037.html are getting ready to face an upsurge in volatility when the trading of Bitcoin futures contracts starts. Already, Bitcoin is swinging to the downside by a fifth of its value, hours before the starting of futures trading. In addition, other factors are government treatment of the cryptocurrency, and hackings of Bitcoin exchanges. Moreover, Bitcoin is inherently volatile because of its illiquidity.
By design, only 21 million bitcoins will ever be mined. This lack of liquidity makes Bitcoin inflation-resistant and incentivizes miners. Furthermore, illiquidity makes Bitcoin inelastic, and hence volatile. Elasticity refers the degree to which individuals, consumers or producers change their demand or the amount supplied in response to price or income changes.
No matter how high prices go, miners will not produce more than 21 million coins. Even if they did, it would only influence miners to create more bitcoin today at the expense of creating less in the future since the total supply will reach a hard, bitocin limit of 21 million coins.
The supply inelasticity explains in large part why bitcoin is so volatile. Bitcoin is a battle-tested, sturdy animal. Time and again, it has demonstrated itself to be remarkably resilient. Now, Bitcoin is about to be volwtile by the new environment that futures trading will impose.
Bitcoin will undoubtedly show once again its inherent capacity to quickly adjust to an ever-changing environment, and then, with renewed force, it go here continue its ever ascending trajectory.
Let us know in the comments below! Could you be next big winner? I consent to my submitted data being collected and stored. Bitcoin has had its share of unnerving time periods — but over the last decade, most volatile trading times bitcoin has been one of the best investable assets. The next big bitcoin bull-run was supposed voltaile be led by an incoming swathe of institutional money. The past month has been a pretty challenging time for bitcoib HODLers, and cryptocurrency in general.
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