Crypto trading v stock trading
As we head into the weekend, I thought I would point out a difference between crypto trading and trading in stocks. Where with stocks the markets have an opening and closing time (though there are pre and post market trading), crypto trading is 24/7 365. People trade all day, every day.
My experience is that you sometimes see a flat market or even a drop on Friday, due to day traders liquidating profits and avoiding a need to watch markets on the weekend. Trade volumes tend to be lower on the weekend too and naturally price movements tend to be less volatile.
That said, we are in unchartered territories at the moment, the market is very active, especially with the increase in trade from Japan. I think this weekend will be interesting and I will be keeping a key eye on price movements as last weekend was very busy.
The following two articles are worth a read; digital currency has been deemed a legal form of payment in Japan, and there are ten new exchanges set to launch soon.
Volume is a key driver of price, and I expect more countries will be making similar changes to the legislation around crypto.
While there is always a risk of a crash, this for me will be due to profit taking and panic selling rather than a correction. For me, the entire market is undervalued.
Any questions, then please ask.