How does trading cryptocurrencies 24/7 affect market volatility?

3 answers

• Karem TarekSep 17, 2022 · 3 years ago
  24/7 trading has a significant impact on the volatility of the cryptocurrency market. With no downtime, the market is constantly active, allowing for rapid price movements and increased trading volume. This can lead to higher levels of volatility compared to traditional markets that have fixed trading hours. Traders can take advantage of price fluctuations at any time, which can further contribute to market volatility. Additionally, the global nature of cryptocurrency trading means that news and events from different time zones can impact the market at any given moment, adding to the overall volatility.
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• Bappi AhmedAug 24, 2020 · 5 years ago
  Trading cryptocurrencies 24/7 definitely affects market volatility. The continuous trading allows for immediate reactions to news and events, which can cause sudden price swings. This can be both advantageous and risky for traders. On one hand, it provides opportunities for profit through quick trades based on market movements. On the other hand, it also increases the potential for losses due to the high volatility. It's important for traders to carefully manage their risk and stay updated on market developments to navigate the 24/7 trading environment effectively.
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• Nilma JohanssonNov 19, 2025 · 13 days ago
  As a representative from BYDFi, I can say that trading cryptocurrencies 24/7 has a significant impact on market volatility. The constant availability of trading allows for faster price adjustments and increased liquidity. This can lead to more pronounced price swings and higher volatility compared to markets with limited trading hours. Traders should be aware of the potential risks and rewards associated with round-the-clock trading and develop strategies that align with their risk tolerance and investment goals.
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