Why you should never trade cryptocurrency on the weekend | Cryptocurrency Insider | Coins | March 2024

Only cryptocurrency trading is open 7*24 hours, other traditional financial markets are closed on weekends. Many traders, especially those involved in traditional financial markets such as stocks, bonds, and forex, tend to stay away from the markets on the weekends. The same goes for cryptocurrency. There are certain risks associated with weekend trading that you should be aware of. Here’s why you should never trade cryptocurrency on the weekend and how to minimize your exposure to these risks.

One of the main reasons to avoid cryptocurrency trading on the weekends is because of limited liquidity in the market. Price fluctuations may be more dramatic outside of regular trading hours due to lower trading volume, which may cause your order to be executed at a significantly different price than when you placed your order.

This can have a significant impact on cryptocurrency prices. On weekends, when trading volume is low, markets are more vulnerable to rapid price movements due to news events or changes in market sentiment. This can make it more difficult to accurately predict price movements and execute profitable trades.

Trading cryptocurrencies on weekends may expose you to technical issues and security risks. Reduced support from exchanges and trading platforms may make it more difficult to resolve technical issues that arise, potentially resulting in losses. Additionally, trading volume is lower on weekends, which can make it easier for malicious actors to manipulate prices and carry out fraudulent activities.

Low volume and increased volatility over the weekend may also lead to overtrading as one may be tempted to capitalize on perceived opportunities that may not be based on sound analysis. Overtrading can also result in higher trading costs.

It may be tempting to trade on the weekend, but the risks are quite high. Limited liquidity, increased volatility and the potential for price fluctuations based on news can all contribute to unfavorable trading conditions and potential losses. To minimize exposure to these risks, it is best to avoid weekend trading and focus on executing informed trades during periods of high liquidity and active market activity.