HERE IS WHEN YOU MIGHT WANT TO CONSIDER TRADING CRYPTO
Best Time to Trade Crypto in Nigeria
Cryptocurrency trading has become an increasingly popular investment option in Nigeria. The crypto market is open 24/7, allowing traders to buy and sell assets at any time. However, trading at certain times can yield better results. Timing trades effectively to match these times can significantly impact profitability. In this guide, we will be looking at the best time to trade crypto in Nigeria in an attempt to help traders optimise their trading strategy.
Understanding the Global Crypto Market Schedule
Unlike traditional markets, the crypto market does not have an opening and closing time. It runs continuously across global exchanges throughout the week. However, trading volume, market activity, and price volatility can vary significantly based on various factors. These include:
- Trading hours in major financial regions like North America, Asia, and Europe.
- Traditional market overlap periods can lead to increased activity and liquidity.
- Weekends and holiday trading often see lower volume but can result in more volatile price movements.
The Best Time to Trade Crypto in Nigeria
For most traders in Nigeria, the optimal time to trade crypto aligns with the peak hours of major global financial markets.
Interestingly, the US leads in crypto ownership, particularly for Bitcoin. However, European and Asian market hours contribute the most to trading activity, meaning that while many crypto assets are held by US investors, trading volume tends to be higher during the European and Asian sessions.
When assessing the best trading time for crypto, we will mainly focus on trading volume. For Nigerian crypto traders, the following timeframes are particularly relevant:
- European Market Hours (9:00 AM - 5:30 PM WAT) - Trading during this period can be very beneficial. The crypto market sees the most activity during the European market hours. With major European exchanges like the London Stock Exchange (LSE) in operation, overall market activity tends to be high. Furthermore, the overlap with US market hours presents even trading opportunities for traders.
- Asian Market Hours (12:00 AM - 3:00 AM WAT) - While the Asian market operates during Nigeria’s night hours, significant trading activity occurs in the early morning hours in Nigeria. Trading during this period can be advantageous. Significant price movements are observed, especially for major cryptos like Bitcoin and Ethereum, which sets the trend for the day.
- US Market Hours (3:30 PM - 10:00 PM WAT) - The New York Stock Exchange (NYSE) and Nasdaq are crucial players in the global financial markets. However, the crypto market may see the east trading volume during these market hours. Nonetheless, the US market significantly influences cryptocurrency prices, and the overlap with European market hours presents an excellent opportunity for traders.
Why These Times Might Be Optimal
- Increased Market Liquidity - During peak hours, more traders are active, leading to higher trading volumes. This increased liquidity ensures smoother and quicker execution of trades, minimizing slippage and reducing transaction costs.
- Reduced Price Volatility - Higher liquidity tends to stabilise prices, making it easier to predict market movements and execute trades with greater precision.
- Real-time News Impact - These specific timings usually have the most impactful news. Major news events, such as regulatory announcements, technological breakthroughs, or celebrity endorsements, can have a significant impact on cryptocurrency prices. Staying updated on these developments during peak trading hours allows traders to react swiftly and capitalise on potential opportunities.
- Economic Indicators - Economic indicators like GDP growth, inflation rates, and interest rate decisions from major economies can influence the overall market sentiment. They are usually announced during peak market hours.
Top Crypto Brokers in Nigeria
Exness
Exness is a globally recognised forex broker with a strong reputation in Nigeria. The platform offers 9 diverse cryptocurrency pairs for trading 24/7. The spreads on these crypto assets depend on the account a trader is on. For example, the BTCUSD pair on the Standard account has an average spread starting at $39.99, while the Pro account offers an average spread of $24.98. Both accounts are commission-free.
The Zero account, on the other hand, provides an average spread of 0.0 on the BTCUSD pair, with a commission of $8 per side per lot. Meanwhile, the Raw Spread account features an average spread of $18.97 with a $2 commission per side per lot. A significant advantage of Exness is that they don’t charge swap fees on cryptocurrency positions. This is especially ideal for long-term traders who may hold positions for extended periods.
Beyond CFD on cryptocurrencies, Exness clients have access to over 250 market instruments, including CFDs on forex, indices, commodities, and stocks. Available trading platforms include MetaTrader 4, MetaTrader 5, and Exness Terminal, each designed with user-friendly interfaces and extensive functionality.
In terms of regulation, Exness is overseen by multiple authorities, including the FSCA in South Africa, the CMA in Kenya, the FCA in the UK, and the FSC in Mauritius, among others.
FXGT
On the FXGT broker platform, traders can access over 30 crypto CFD pairs with competitive, market-standard spreads. Additionally, FXGT offers a unique asset class with synthetic cryptocurrencies, enabling traders to speculate on the relationship between cryptocurrency prices and other markets. The spreads on the available crypto pairs vary by account type.
For instance, the BTCUSD pair has a minimum spread of $165.2 with no commission on the Standard+ account. On the Mini account, spreads for this pair start at $174.5, also commission-free. The ECN account offers BTCUSD spreads as low as $31.5, with a 0.1% commission, while the Pro account provides a spread of $91.4 with no commission.
FXGT is a regulated crypto broker overseen by the FSCA in South Africa, the FSA in Seychelles, and the VFSC in Vanuatu. While regulation alone is not always sufficient, FXGT has built a solid reputation in the market with minimal client complaints.
The broker caters to Nigerian traders by providing access to over 150 diverse market products. These include CFDs on cryptocurrencies, forex, equity indices, stocks, synthetic cryptocurrencies, energy products, and precious metals. FXGT supports both MetaTrader 4 and MetaTrader 5 as trading platforms.
Other Timing Factors
Weekdays vs. Weekends
Cryptocurrency trading can also vary significantly between weekdays and weekends. Traditionally, trading volume tends to be lower on weekends. However, price movements can still be substantial due to the ongoing market dynamics. Traders in Nigeria should monitor weekend trends, especially when major news breaks or global events unfold.
Market Sentiment and Social Media Trends
The crypto market is heavily influenced by market sentiment and social media trends. Platforms like Twitter, Reddit, and Telegram can provide insights into current trends. Monitoring social media for news and trader sentiment can help identify the best times to enter or exit positions.
Additional Tips for Timing Your Crypto Trades
- Leverage Technical Analysis and Indicators- Technical analysis involves studying historical price charts to identify patterns and trends. These patterns can help traders predict future price movements and make informed trading decisions. Tools like moving averages, relative strength index (RSI), and Bollinger Bands can help you identify potential entry and exit points.
- Fundamental Analysis - Fundamental analysis involves assessing the underlying factors that influence a cryptocurrency's value. These include its technology, team, community, and market adoption.
- Risk Management - Stop-loss orders automatically sell your positions if the price reaches a predetermined level, limiting your potential losses. Additionally, diversifying investments across different cryptocurrencies can help reduce risk.
- Consider Utilizing Trading Bots - Trading bots can execute trades automatically based on predefined strategies. This allows traders to capitalise on market opportunities even when they’re not actively monitoring the market.
Nigeria's crypto market is open 24/7, but timing trades strategically can significantly impact profitability. The best times to trade forex, gold as well as crypto align with peak hours of major financial markets, especially the overlap between US and European market hours. By aligning trades with peak hours in major financial markets, Nigerian traders can take advantage of the trading opportunities available in these times.
Increased liquidity during these periods stabilises prices and allows for quicker trade execution. Nonetheless, the best time to trade crypto also depends on the trader’s strategy. Further, staying updated on news, economic indicators, and social media trends can further enhance trading decisions. Remember to utilise technical and fundamental analysis, risk management strategies, and leverage trading bots.