What Is The Best Chart Time Frame For Crypto Trading

What Is The Best Chart Time Frame For Crypto Trading

Many crypto traders when starting focus only on finding the best trading strategy but look past finding the right chart time frame. Choosing the best chart time frame for your crypto trading is as important as choosing the right trading strategy. A common mistake they make is using a trading strategy that is ill-suited to the time frame that they trade-in. 


In this article, we take a look at the what is the best chart time frame for crypto trading and how to go about selecting the one that fits your trading.


What Is Crypto Trading

Crypto trading refers to the speculation of the prices of crypto through the buying and selling of digital currencies. Traders, through various strategies, speculate on the price movements of cryptocurrencies to make a profit


Unlike the stock market which operates only on weekdays, the crypto markets are open 24/7, allowing crypto traders to trade at any time. 


What Is The Best Chart Time Frame To Trade Crypto

One common question that new crypto traders face is what is the best chart time frame to trade crypto in. The answer to the question varies from trader to trader with different chart time frames offering different insights into market trends and price movements. Hence, choosing a chart time frame depends on the trading style and personality of the trader. There are some general guidelines when it comes to identifying the best chart time frame to trade crypto.


Long-term traders typically use the weekly time frame to identify potential entry and exit positions. With a broader perspective, long-term traders benefit from not needing to constantly monitor the crypto markets.


Swing traders typically hold their positions anywhere from a couple of days to a couple of weeks so they mainly look at the daily and weekly time frames. Swing traders often use the weekly charts to determine the overall trend before going down into the daily charts to identify their entries. 


Day traders trade in and out of their positions within the day thus they use the intraday time frames such as the 1-Minute or the 1-Hour time frames to make their buy and sell decisions. 


Choosing The Most Appropriate Time Frame

When it comes to choosing the most appropriate time frame for crypto trading, there are several factors that you need to consider.


Firstly, you need to align the time frame to your trading strategy. If you are a day trader, the intraday time frames such as the 1-Minute or 1-Hour charts provide you with more precise insights and entries than the daily or weekly time frames. Conversely, if you are a swing or longer-term trader, the daily and weekly time frames allow you to take advantage of the broader trends. 


Another thing to consider is the amount of time that you are able to dedicate to trading the crypto markets. If you are not able to allocate a lot of time to trading, a longer-term trading strategy is a better fit compared to a day trading strategy. Choosing a time frame that aligns with your schedule will allow you to effectively implement your trading strategy. 


Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. 


Trading digital assets and digital asset derivatives comes with significant risk of loss due to its high price volatility, and is not suitable for all investors.