Why can you trade crypto 24/7? - Crypto in Plain English - Episode 201 - by cryptohunt.it
Crypto in Plain English - by cryptohunt.it6 Heinä 2022

Why can you trade crypto 24/7? - Crypto in Plain English - Episode 201 - by cryptohunt.it

Why can you trade crypto 24/7?

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

If you’ve ever traded stock, you’ve likely encountered an interesting phenomenon: The markets are only open during weekdays at business hours.

Crypto on the other hand is traded 24/7, no interruptions at all.

Why is this? Let’s dive into some of the history.

In the past, stock markets like the New York Stock Exchange, were operated by people, not computers. And people need to go home for dinner and spend weekends with their families. That’s why trading hours existed originally.

But even now, with software doing all the work, those trading hours remain. Part is tradition, but part is also that it reduces crazy price swings as investors react to news. Companies usually announce big things after hours, and the stock market can take a little bit of time to think about those before opening. That helps calm minds.

The reason this doesn’t apply to crypto is easy to understand: Crypto is entirely more modern. It is all just technology that operates anytime. And because things are just a few lines of code away, anyone can create trading platforms and decide to be open for business 24/7.

So there you have it - the stranger thing is actually that stock markets open and close - because it seems natural nowadays that any market would be open 24/7.

Happy trading!

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.

Jaksot(373)

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