In the traditional trading world, there’s always a cut-off time when buying or selling stocks, right? But have you ever wanted to trade ETHi tokens at 3 am and wondered if you can?
Short answer: yes, you can. For a more detailed answer, read on.
Does the Crypto Market Close?
A great thing about cryptocurrency is that, unlike your local bank, it does not have specific operating hours. Anyone can buy and sell crypto tokens anytime, without waiting for someone to approve or validate the transaction. What’s more, you get the same response wherever you are in the world.
How does the crypto market do this? That’s where the power of the blockchain comes in.
Cryptocurrency uses the blockchain, a decentralized ledger, to operate. Think of it as an expressway where all transactions are recorded, validated, and processed. Computers handle the transaction based on preset commands, with parties involved given a transaction hash as proof.
How Does It Affect the Crypto Market
The instantaneous and 24/7 availability of cryptocurrencies influence various facets of digital assets, namely:
Trade Volume
The amount of crypto one can buy and sell at a certain time frame usually changes depending on the number of active traders. And while you can make a transaction anytime, many traders still operate on a specific timeframe. High trading volumes mean more people are trading with the crypto token, so expect prices to be more stable.
Crypto Prices
While investor sentiment and other factors can affect crypto prices, trade times can also dictate a crypto’s value. Since trading can happen at all times, it also means that prices can change anytime as well. This is one reason why crypto prices tend to be volatile, as prices can be higher during off-peak hours or on weekends when there are fewer traders in the market.
Liquidity Levels
Liquidity refers to how easy it is to buy or sell a cryptocurrency at a specific time. The more activity and demand for a specific token, the better the price will be, an advantage for sellers. Off-peak hours however may result in lower crypto prices, as there would be little demand for the token.
Cryptocurrency is truly amazing, revolutionizing how the world does commerce and trading. And if you’re interested in trading ETHi tokens, we’re available on Coinstore, P2B, and KoinBX. Check us out on these exchanges today!
