How does trading extended hours affect the volatility of cryptocurrencies?

3 answers

• Dec 16, 2021 · 3 years ago
  Trading extended hours can have a significant impact on the volatility of cryptocurrencies. With 24/7 trading availability, the market is open for longer periods, allowing for more trading activity and potentially higher price fluctuations. This can be attributed to the fact that different time zones and global events can influence market sentiment and trading volumes at any given time. As a result, the increased trading hours can lead to increased volatility as more participants enter and exit the market, reacting to news and events around the clock.
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• Dec 16, 2021 · 3 years ago
  Extended trading hours can introduce more liquidity into the cryptocurrency market, which can contribute to increased volatility. With more participants actively trading at different times, there is a higher chance of sudden price movements and increased trading volumes. However, it's important to note that extended trading hours alone do not guarantee higher volatility. Other factors such as market sentiment, regulatory developments, and overall market conditions also play a significant role in determining cryptocurrency volatility.
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• Dec 16, 2021 · 3 years ago
  From BYDFi's perspective, trading extended hours can provide additional opportunities for traders and investors. With 24/7 trading availability, users can take advantage of price movements and market opportunities that may occur outside regular trading hours. However, it's important to approach extended trading hours with caution, as increased volatility can also lead to higher risks. Traders should carefully assess market conditions and use appropriate risk management strategies to navigate the extended trading hours effectively.
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