Best Time to Trade Crypto in Australia: Maximize Profits

This article will emphasize the Best Times to Trade Crypto in Australia. Every trader knows that timing in the crypto world can make or break their profits and losses.

If an Australian trader knows the parameters that define trading activity, the relative liquidity, and the overlaps of all the world’s markets, they would be able to trade all through the day without leaving profits on the table.

Understanding Cryptocurrency Market Hours

Unlike traditional markets, the cryptocurrency market is available 24/7 throughout the year. Unlike stock markets, which have set opening and closing times, cryptocurrency exchanges are available for traders around the clock for buying, selling, and exchanging cryptocurrency.

Even though the market is open 24/7, trading activity and liquidity are not constant and depend on time of day and the region of the world. These are the regions with the highest volumetric trading activity at any given time: New York, London, Sydney, and Tokyo. Cycles of enhanced activity correlate with the hours of operation for major world financial centers.

During the daytime hours in the US and Europe, for example, trading activity is generally higher and volatility is higher, which creates opportunities for higher returns. Also, in Australia, during the evening hours, trading activity is heavily influenced by the US market, leading to large price swings. And even though weekends and holidays are known for low liquidity on certain exchanges, cryptocurrency trading still occurs nonstop.

Factors Influencing the Best Time to Trade

Liquidity

• High liquidity helps trades run more smoothly and keeps spreads tighter.

Volatility

• Increased volatility presents more profit-making opportunities, though it’s riskier.

Global Market Hours

• Access to trade the markets is affected by the operating hours of the US, Europe, and Asia.

Trading Volume

• Increased trading volume enables better execution of trades at a chosen price.

News and Market Events

• Changes in regulation, project announcements, and macroeconomic news can dramatically affect the market.

Weekday vs Weekend Patterns

• Activity levels are generally higher on weekdays, which can then lead into the quiet periods of the weekends.

Technical and Seasonal Trends

• Traders can select paths based on historical data that repeat during specific periods.

Time Zone Overlaps

• The probability of market activity increases when multiple major markets are open.

Best Time to Trade Crypto in Australia

Early Morning (6 AM – 9 AM AEST)

In Australia, from 6 PM to 12 AM AEST, many believe these hours are the best time to trade crypto. This is in part due to overlap with US markets, the world’s largest crypto trading market.

During this time, trading volumes and price volatility are at their peak, which increases opportunities to profit from short-term trading. This is the time when price movements and swings are dynamic, and volatility can be profitably traded.

In addition, this is the time for Australians to track the trends set in the US markets and with the added advantage of the European markets. This provides Australians with ample information to make decisions with the best profit potential.

Midday (12 PM – 3 PM AEST)

From 12 PM to 3 PM AEST is another good time to trade crypto in Australia, for the same reasons mentioned above. This time period covers the change from the local to the global market. Australia trades in the crypto market to the US market during the European market’s active hours, and the US market is active during the European market’s hours.

It is during this time that the trading volume is average, making it appropriate for day traders and swing traders.

The decrease in volume during this period makes it easier for traders to predict prices. It is during this time the midday Australian trader gets to trade crypto as the news is fresh in their hands. They respond to news quickly and make trades for profit.

Evening / Night (6 PM – 12 AM AEST)

Between 6 PM and 12 AM AEST, evenings and nights are considered the most lucrative for crypto trading in Australia because they align with the US market, the world’s largest crypto trading hub.

Since this is when the trading volume and volatility peak, it is possible to earn significant profits on short-term trades. The price movements become more pronounced, allowing skilled traders to take advantage of more extreme price changes.

Furthermore, this period allows Australians to track the market trends of Europe and the US crypto markets, which significantly improves the odds of identifying the most profitable entry and exit points.

Tools & Techniques to Determine the Best Trading Time

Trading Volume Analysis

• Determine the paid activity on the exchange to notice an increase in activity.
• Higher system-paid volume or user activity indicates greater liquidity in system-paid trades and smoother execution of order processing.

Volatility Indicators

• Utilize the Average True Range (ATR) tool to measure the fluctuating prices.
• Allows you to determine which periods offer more exercise trade opportunities, while also suggesting the periods with greater risk.

Global Market Overlaps

• Keep an eye on the major markets and their opening and closing hours, including the US, Europe, and Asia.
• Overlapping market hours provide more trade execution opportunities with increased volatility and liquidity.

Crypto News & Alerts

• Check time-sensitive crypto project updates on CoinMarketCap, CoinGecko, or crypto news aggregators to provide market-moving project updates.
• Helps dashboards with an active crypto price tracker to predict and issue alerts on potential price-impacting events, such as regulatory announcements or project launches.

Technical Analysis Tools

• Charts, trend lines, support/resistance levels, and moving averages provide the necessary tools to forecast price shifts and assist with determining the optimal trade execution.

Automated Trading Bots

• Bots can monitor and execute fully automated trades while following a predetermined strategy, eliminating the need for manual monitoring of optimal trade times.
• Provides peace of mind that the system and processors automate the devices used for these services, saving time and reducing energy waste during execution.

Historical Data Analysis

• Analyze historical trades to pinpoint regularly high-volume and high-variance spans.
• Helps identify the most lucrative times of the day and the week.

Risk Management Tools

• Use of stop-loss orders and take-profit limits, along with position sizing, controls your risk during extreme volatility.
• Protects against surprises when trading during active hours.

Tips for Maximizing Profits

Trade During High Liquidity Periods

• Ensure execution of orders is smooth, and spreads are narrower when trading volume is high.

Leverage Volatility Wisely

• Flaunt the tricks of the trade like swing trading or scalping to take advantage of price fluctuations, however, do not get overexposed when conditions of the market are extremely volatile.

Set Clear Entry and Exit Points

• Determine stop-loss and take-profit positions in advance before commencing trade to lock in profits and mitigate losses.

Follow Global Market Trends

• Keep an eye on major international markets in the US, Europe, and Asia to predict price changes that will reach the Australian market during trading hours.

Use Technical Analysis

• Make informed trading decisions based on pre-demarcated trends, triggers, and levels on the chart alongside support and resistance zones.

Stay Updated with News

• Avoid blindsiding and grab opportunities with both hands when you’re informed about crypto news, regulatory changes, and significant announcements.

Diversify Your Portfolio

• Relying on a single cryptocurrency is a bad idea; it is best to incorporate multiple coins into your trading to help spread risk and increase potential gains.

Avoid Emotional Trading

• In order to safeguard your profits, remain disciplined and do not deviate from your trading plan, proposed impulsive moves should be ignored at all times.

Use Automated Systems

• Automated trading systems or bot technology can assist you in executing trades and triggering trades within optimal windows.

Review and Alter Strategies

• Analyze your trades regularly and refine your strategy based on your results and the market’s shifts.

Common Mistakes to Avoid

Trading Without a Plan

It is likely to lead to losses when you enter trades without a clear strategy.

Ignoring Market Trends

Failing to study the global and local market conditions may lead to executing trades at inappropriate times.

Overtrading

Unprofitable overbuying and overselling increase costs and reduce profitability.

Neglecting Risk Management

Leaving exposure too open without stop-losses and take-profit limits is very dangerous, along with improper position sizing.

Chasing Volatility

Highly unsustainable price moves without a strategy when entering turns lead to big losses.

Over-Reliance on Tips or Rumors

Unvalidated trades influenced by social media hype tend to lead to losing trades.

Failing to Diversify

Risk and loss potential increase greatly when portfolios contain a single digital asset.

Ignoring Fees and Costs

Leaving trading costs, fees, and spreads unaccounted for will take your profits in the long run.

Conclusion

To sum up, determining the ideal time to trade crypto in Australia is fundamental to increasing gains and reducing potential risks.

Early morning (6 AM – 9 AM AEST) offers stable conditions with the opportunity to assess global shifts overnight, midday (12 PM – 3 PM AEST) has moderate liquidity with predictable trends, and the evening and night (6 PM – 12 AM AEST) hours possess high volatility and excellent opportunities with the US market overlap.

Optimal trading hours, in conjunction with the right tools and a strategic, well-informed, and flexible approach to risk, allowed Australian traders to make better choices, take advantage of opportunities in the market, and achieve balance in their trading.

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