Unlike the NZX / ASX or other country specific stock exchanges Bitcoin and Cryptocurrencies are traded 24 hours a day 7 days a week. Below is an example of the ASX’s current trading hours. Then after that I will go deeper into the effect 24/7 trading has on a tradeable product.
This is the basic outline in Sydney time of the ASX’s (Australian Stock Exchange) public operating or trading hours:
7am to 10am Pre- Open
10am to 4pm Normal Trading
As you can see the spread of hours for normal trading on the ASX is 6. The ASX and markets in USA, Europe and Asia all follow a Monday to Friday routine with weekends the market being closed for trading. This is common in the west but in the middle east for example where the work week typically is from Sunday to Thursday you will find that Friday and Saturday are closed. However with Bitcoin and all other cryptocurrencies this dramatically changes as stated above it’s markets are open 24 hours a day, 7 days a week.
Where a normal stock market looks at the change in a stock price as the difference between yesterday’s close price and the current price to identify gains or losses from day to day. Bitcoin and cryptocurrencies look at the price of the crypto from exactly 24 hours ago and give you the gains or losses according to that. So if you login to a site or go to coinmarketcap.com you will find Bitcoin – 24 hour price change – +7% or +$700 for example. So what is the effect of this. Well the price in a normal stock exchange is always compared to one solid price whereas the crypto comparable price is constantly shifting second by second. It basically means that you need to get used to this way of trading as it is much more fast paced and not always perfectly measurable with clarity.
Furthermore, due to the hours being so vast some traders have little to no sleep and you can also see other effects like for example when a certain country who just wakes and is bullish on certain cryptocurrencies for example Bitcoin, the change in price can be dramatic and this makes for fantastic trading once you understand these ebb and flows.