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What are the risks and benefits of after-market trading in the cryptocurrency industry?

avatarMisWebmail EQDec 26, 2021 · 3 years ago1 answers

What are the potential risks and benefits associated with after-market trading in the cryptocurrency industry? How does it differ from regular trading?

What are the risks and benefits of after-market trading in the cryptocurrency industry?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    After-market trading in the cryptocurrency industry presents both risks and benefits. One of the main benefits is the ability to trade cryptocurrencies outside of regular market hours, which provides flexibility for investors who may not be able to actively trade during the day. This can be particularly advantageous for individuals with busy schedules or those in different time zones. Additionally, after-market trading can offer opportunities for profit through arbitrage, where traders can take advantage of price discrepancies between different exchanges. However, it's important to note that after-market trading can also be riskier compared to regular trading. Prices can be more volatile during off-hours, and there may be lower trading volumes, which can impact liquidity. It's crucial for investors to carefully consider the risks and benefits before engaging in after-market trading in the cryptocurrency industry.