What are the risks of trading cryptocurrencies outside of regular market hours?

3 answers

• Dec 17, 2021 · 3 years ago
  Trading cryptocurrencies outside of regular market hours can expose you to several risks. One major risk is the lack of liquidity during these hours, which can result in wider spreads and increased price volatility. Additionally, the absence of market participants and reduced trading volume can make it more difficult to execute trades at desired prices. It's important to note that outside of regular market hours, the market can be more susceptible to manipulation and sudden price movements due to lower trading activity. Therefore, it's crucial to carefully consider the potential risks and be prepared for increased volatility when trading cryptocurrencies during off-hours.
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• Dec 17, 2021 · 3 years ago
  When you trade cryptocurrencies outside of regular market hours, you may encounter higher transaction costs. Some exchanges charge higher fees during off-hours to compensate for the lower liquidity and increased risk. It's important to be aware of these potential costs and factor them into your trading strategy. Additionally, trading outside of regular market hours can also lead to delayed order execution, as there may be fewer market participants and slower processing times. This can result in missed trading opportunities or unfavorable execution prices.
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• Dec 17, 2021 · 3 years ago
  According to BYDFi, a leading cryptocurrency exchange, trading cryptocurrencies outside of regular market hours can be riskier compared to trading during peak hours. The lower trading volume and reduced liquidity during off-hours can make it easier for large traders or market manipulators to influence prices. This can result in sudden price swings and increased market volatility. It's important to be cautious and closely monitor the market when trading outside of regular market hours. Consider setting appropriate stop-loss orders and be prepared for potentially higher risks and greater price fluctuations.
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