Best Times To Trade Meme Coins 

Navigating the 24/7 nature of the crypto markets as a meme coin trader is a unique challenge. Timing is everything when faced with volatility and unpredictability as you try to implement your strategy.

Entry and exit points will define your success, and to get them right you’ll need to follow market rhythms and capitalize on market trends. 

So lock in and learn as we teach you the fundamentals of timing crypto trades for optimal results. 

Why Timing Matters in Crypto Trading

Profitable meme coin trading comes down to three crucial factors: liquidity, trading volume, and transaction costs. All of these factors tie back into timing. 

• Liquidity is a measure of how easily you can make your buys and sells without impacting the market price (which is already extremely volatile in the meme coin market). Timing your buys and sells when liquidity is high can help get the best price for your coin. Low liquidity will make trades harder to execute.

  
  

• Trading Volume indicates market interest and potential price movements, so if you make trades when there’s a higher volume of trades happening, you can leverage more stable trading conditions.

  
  

• Transaction Costs can be a huge pain for traders, especially when they lose big chunks of their profits to poorly-timed transactions (we’ll cover this in the gas fees and congestion section). Fortunately, Telegram trading bots have solved this issue, offering predictable and fixed transaction fees for greater cost transparency.

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Further Reading: BONKbot’s fee structure is outlined here.

When Is The Best Time for Trading Crypto?

TLDR; The best times to trade crypto or meme coins are during peak U.S. stock exchange trading hours as you’ll be exposed to higher liquidity and trading volume.

U.S. Market Hours and Liquidity

The U.S. stock market is the biggest trading ecosystem in the world, though many stock traders have now diversified their portfolios into cryptocurrency and digital assets. This goes some way towards explaining why crypto trading volume peaks during U.S. stock market hours.

Though, it’s not just Americans causing this trend, it would appear that whether traders are in Asia, Africa, Europe, or the Americas, they’re willing to trade early in the morning or late at night to catch the best volume and liquidity. 

When the opening bells of the U.S. stock market chimes at 09:30 AM Eastern time, crypto trading almost immediately trends upwards. It wasn’t always this way. Asia used to be the center of trading activity, but it has moved West in recent years.

This could be due to the impressive growth of institutional trading in the US, with substantial capital, increased liquidity, and tighter bid-ask spreads brought about by professional traders. Traders, both pros and retail, know that stable movements and reduced friction make trading smoother, so a global alignment towards one timezone was almost an inevitability.

Another explanation for U.S. trading hours becoming the optimal time to execute your deals is the increase in regulatory clarity, the rise of sophisticated trading infrastructure and platforms, and the recent mainstream acceptance of cryptocurrencies in the United States.

Crypto is no longer niche and obscure, but part of most traders’ portfolios. 

Weekend Trading in Crypto: Volatility and Liquidity Drops

While crypto trading can be done 24/7, unlike stocks, that doesn’t mean that there’s around-the-clock activity. At the weekend, things take a notable dip, and that’s not because of a lack of interest from retail traders, but because most institutional investors and professional traders simply aren’t in front of their terminals.

Now, while you’d think institutional investors aren’t interested in memecoins, you’d be quite wrong. Some of these professional traders are hired to target high risk investment products, and what’s higher risk than a completely unpredictable hype and community-driven coin that piggybacks off a social media trend? The answer is: not much. 

Weekend liquidity lulls as people step back, rest, and wait for the next week ahead. This reduced volume means lower liquidity, and also less predictable price movements, making it even more challenging to make trades.

So, the key takeaway here, if you’re not looking to expose yourself to unnecessary risk, is to be conservative at the weekends and consider that the market is more distorted at this time. 

Best Time to Trade DeFi Tokens: Gas Fees and Network Congestion

Until now, we’ve hardly touched on transaction fees and delays. Well, network congestion dramatically affects transaction costs and execution. That’s just part of DeFi, and especially part of Ethereum.

This has caused a big wave of traders to move away from the Ethereum (ETH) ecosystem and towards Solana (SOL), where most meme coin trading now takes place. Lower fees and faster transactions = winning formula. 

Another solution to high fees and slow processing is the emergence of Telegram trading bots. They’re low-cist, efficient, work across multiple networks, leverage Layer-2 solutions, and do everything they can to make meme coin trading more accessible. 

Top Trading Tips:

• For low congestion, the best time to trade crypto in US states is outside of US trading hours

  
  

• Use L2s for reduced fees and processing times

  
  

• Explore blockchains with cheaper transaction costs

  
  

• Monitor gas fee trackers to time your trades

  
  

Centralized vs. Decentralized Exchange Activity: Similar Time Patterns

You’d be surprised how similar CEXs and DEXs are, when their whole existence is defined by being different. Ultimately, they’re both homes for traders, and when it comes to trading dynamics, peak trading times, institutional influence, and standardization, they’re moving closer towards each other. 

As DEXs and CEXs have unintentionally synchronized, institutional traders and large-scale investors have been able to establish a unified trading rhythm along U.S. trading hours.

These trading patterns see centralized and decentralized markets and traders align, suggesting that meme coin traders can apply similar timing strategies to trading crypto as they would stocks. 

Give BONKbot a Try Today

For traders looking to navigate the choppy waters of meme coin trading, Telegram trading bots offer a calm port in the storm.

We deliver set transaction fees, new levels of convenience and accessibility, and empower both casual and professional traders to make the most of cryptocurrency’s exciting volatility.