Should You Trade Cryptocurrency on The Weekends?

When trading cryptocurrency, opinions can be divided on whether weekends or weekdays are better. Some traders thrive on the dynamics of weekend markets, while others prefer the stability of weekday trading. One is not inherently better than the other, and various factors influence the optimal trading times based on individual strategies and market conditions. 

Weekend trading is better suited for short-term traders seeking opportunities in increased volatility, and weekday trading is ideal for long-term investors looking for stability and liquidity in the market.

In this article, we will discuss whether trading cryptocurrency on the weekends is worth it.

Trading crypto on the weekends: What’s it like?

Cryptocurrency markets operate 24/7, including weekends, unlike traditional financial markets, which close on Friday evenings and reopen on Monday mornings. Trading crypto on the weekends comes with its own set of characteristics and considerations:

Increased volatility

• Lower volume: With fewer traders active over the weekend, trading volumes can be lower. This reduced volume often leads to higher price volatility as fewer trades can move the market more significantly.
• Price swings: Significant price swings can occur more frequently due to the lower volume. This can present opportunities and risks for traders looking to capitalize on short-term movements.

Market dynamics

• News impact: News and events that occur over the weekend can have an amplified effect on prices. With fewer market participants, major news can lead to exaggerated price movements.
• Technical trading: With many institutional players out of the market, weekend trading often sees a higher influence on technical trading. Charts, trends, and technical indicators may play a more significant role.

Trading opportunities

• Short-term gains: The increased volatility can provide numerous opportunities for short-term gains. Traders who can closely monitor the market and react quickly may find the weekends better.

Order types 

• Stop-loss and take-profit orders: Given the increased volatility, it is essential to use stop-loss and take-profit orders to manage risk and secure gains automatically over the weekends.
• Limit orders: Placing limit orders rather than market orders can ensure traders enter or exit a trade at their desired price, which is especially useful in a fast-moving market over the weekend.

Psychological considerations

• Emotional discipline: The excitement or stress of weekend trading can lead to impulsive decisions. Maintaining emotional discipline and sticking to a well-thought-out trading plan is crucial.
• Fatigue and burnout: Continuous trading without breaks can lead to burnout. Balancing trading activities with rest is important to maintain long-term performance and well-being.

Reasons to avoid trading crypto on the weekends

Risk of over-trading

The non-stop nature of crypto markets can lead traders to overtrade during weekends. Without the structured breaks seen in traditional markets, traders may make impulsive decisions driven by fear of missing out (FOMO) or fatigue. Overtrading often results in increased transaction fees and higher exposure to market volatility, potentially leading to significant losses.

Unpredictable market openings 

Weekend trading is characterized by unpredictable market openings on Monday. Price movements over the weekend can cause gaps when traditional markets reopen. These gaps can lead to unexpected and rapid price changes, making it difficult for traders to execute orders at desired prices. This unpredictability increases the risk of substantial losses.

Scheduled downtime and unexpected outages

Many exchanges schedule maintenance or upgrades during weekends when trading activity is typically lower. This can result in downtime, preventing traders from accessing their accounts or executing trades. Additionally, unexpected outages are more challenging to resolve quickly over the weekend, leading to potential missed opportunities or an inability to manage positions effectively.

Higher chances of market fragmentation

The market can become fragmented over the weekend with fewer participants and lower liquidity. This fragmentation can lead to irregular price movements and wider bid-ask spreads. Traders might face difficulties in executing large orders without significantly affecting the market price, which can result in suboptimal trading outcomes.

Trading crypto on the weekdays: Is it worth the effort?

Trading crypto on weekdays can be more stable and gives access to crucial information from traditional markets with increased liquidity. Weekdays witness higher trading volumes and participation from institutional investors, providing a more predictable environment for trading. 

Additionally, weekdays provide ample opportunities for gain due to significant price movements driven by regulatory announcements and economic trends. Technical analysis tools are more effective during weekdays, aiding traders in identifying patterns and trends. 

While weekdays offer favorable conditions for trading, weekends also have their merits, as discussed above, making them both worth considering for crypto trading.

Trading crypto on the weekdays: Yes or no

While trading on weekends can offer opportunities for increased volatility and potential gains, it also comes with risks such as illiquidity and wider spreads, making it challenging to execute trades at desired prices. Whether weekend trading is worth it depends on individual goals, strategies, and risk tolerance, with factors such as market conditions and personal availability also playing crucial roles.

Disclaimer: All material published on our website is intended for informational purposes only and should not be considered personal advice or recommendation. As margin FX/CFDs are highly leveraged products, your gains and losses are magnified, and you could lose substantially more than your initial deposit. Investing in margin FX/CFDs does not give you any entitlements or rights to the underlying assets (e.g. the right to receive dividend payments). CFDs carry a high risk of investment loss.

About The Author

Ritika Tiwari

Ritika Tiwari is a freelance content writer and strategist at Blueberry Markets, specializing in forex, CFDs, stock markets, and cryptocurrencies. She has over 10 years of experience building content for FinTech and SaaS B2B brands. Outside of work, you’ll likely find her somewhere near the ocean.

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