Bitcoin trading is open to anyone and takes place twenty-four hours a day, every day. This means that trading can take place at any time of the day. The unregulated nature of cryptocurrency ensures that any time is time for business. Therefore, the markets never close, and the terminology “trading close” refers to something entirely different. Arguably, trading closes at certain points for different traders due to different reasons.
It is worth noting that for any market whatsoever, there is always an opening and the closing price. Opening and closing terms refer to the first and last price for that particular day. The closing price is a more common term in cryptocurrency, and it refers to the last price of any particular day. This particular price can refer to the price recorded at just before midnight. Technically, this price will be the same as the opening price of the next day. Therefore, a single term, closing price, can mean the last price of a particular period. Equally, the term can safely mean the opening price for the next period.
The bitcoin trading closing is a term that only helps develop a time mark and is not a definite market closure time. Therefore, this time depends on the timezone of a region or the relative time mark. Lack of a definite closing time results in a rolling denominator which keeps changing. A relative change in price over the last 24 hours gives the rate of change in price. Therefore, the last 24 hours do not necessarily count from midnight. More importantly, the approach gives a rolling denominator that can help in bitcoin analysis. This denominator indicates the changes in bitcoin in the last 24 hours.
While bitcoin markets remain open, the best trading time is when other markets are active. Such markets include the Forex and Indices market, which make up a large share of online trading. Other markets help maintain the needed liquidity and that eases the flow of trade. Usually, during open sessions for other markets, it is easy to trade bitcoin. When other markets are closed, it is hard to complete a trade. However, when other major markets are active, the chances of making successful bitcoin trades are high. Traders understand this fact and make use of the active trading period.
Bitcoin trading does not stop even for holidays and other political and religious functions. The cryptocurrency does not adhere to political and social welfare. As such, anyone can trade currency at any time of night or day. any trader can take their time to execute their trade. Nobody has to fear getting locked out of a trading opportunity. Another notable advantage of operating at any time of the day is that traders can execute international exchange without any limitation.
A vital observation to make is that trading bitcoin requires no legal contract of any kind. This provision adds to the fact that there is no superior entity that closes or regulates trade. Therefore, traders can trade as little or as much as they like without having to explain their actions. Again, traders can have as many trades executed at any time of the day or night without the fear of being explained to a regulatory body. On the negative side, lack of regulations on the time allowed for trading and the amount traded can greatly compromise the safety of trading in bitcoin. If a trader’s account is illegally accessed, the intruder can execute limitless amounts of trade.
The continuous nature of bitcoin trading usually suggests that a lot can happen while a bitcoin owner is least expecting. Some of the adverse events that can happen are a sharp rise or drop in the value of bitcoin. Such changes can take bitcoin owners by surprise, since a huge swing can affect the value of the cryptocurrency owned. Therefore, crypto such as bitcoin needs close monitoring to ensure that changes are noted and protective measures are taken to avoid financial damage. The hard part is the fact that such a change can occur at any time of the night or day.
Even though bitcoin has no closing time, traders must exercise responsibility when executing trades. The technical basic factors of trading such as volatility, volume, and economic factors such as pandemics can add value to the trading decisions of a trader. Also, as noted earlier, traders have to consider the time zones and trading activity in other market areas such as indices and Forex.