Cryptocurrencies (including Bitcoin, Ethereum, Binance and XRP) have been attracting a lot of attention, especially after the epic rise of Bitcoin & Ethereum. At the time of writing this article, Bitcoin is trading close to $62,300 a whopping 786% rise from $7035 on Apr 18, 2020. Ethereum has seen a move from $170 to $2500 which is 1370% increase (yeah, that’s true).
The big gains may seem very attractive, but these are not just new markets, they play by rules different than most traditional investment avenues. Cryptocurrencies are different from regular stocks and bonds in several ways, but a key difference lies in market hours. Unlike traditional options, crypto market is open 24X7. That means you can trade in cryptocurrency any time of the day or night – 24 hours a day, 365 days a year.
What is Daily Price Change in Crypto?
Typical stocks are traded during fixed hours. The live current market price is benchmarked against previous day close. This means if you want to calculate price change in stocks, you compare the change is price from previous day close and take it as a percentage of the previous day closing price. In case of Cryptocurrency, since there is no specific opening or closing time, it is not possible to follow the same methodology. A crypto trader sees day change as 24-hour change.
Price Change = (Live Price – 24 HourAgo Price) / 24HourAgo Price * 100
This means that when you look at price change, you are looking at the percentage change over the last 24 hours. It is difficult to ascertain solely from the price change, whether this is the actual change or just a result of volatility. In a way, this is a 24-hour rolling returns on a very dynamic basis. These prices may not be as important for long term investors but do impact decision making for short term traders.’
Cryptocurrencies are highly volatile and involve high risk. The content shared here is only for educational purpose. Please consult your financial advisor before making any investment related decisions. The author or the website will not be liable for any loss incurred by you. The article contains referral links to wallets, which may benefit the author/website at no additional cost to you.
Incoming Queries: What time do cryptocurrency markets open? Can you buy crypto when the market is closed? Does Bitcoin trade 24 hours a day?