Crypto behaves differently from every other market in this Academy. There is no closing bell, much of the volume trades on derivatives with their own mechanics, and liquidity can thin out dramatically on weekends.
24/7, with rhythms
Bitcoin and other major coins trade every minute of every day. Even so, activity still rises when traditional markets are open, especially during the US session, and falls on weekends and holidays. Thin weekend liquidity can produce sharp moves that reverse when larger traders return on Monday.
Perpetual futures and funding
Most crypto trading volume is in perpetual futures ("perps"): futures with no expiry date. To keep their price close to the spot price, perps use a funding rate, a payment between longs and shorts made at regular intervals, often every eight hours on major exchanges.
Worked example
You hold a $10,000 long Bitcoin perpetual. Funding is +0.01% every eight hours.
You pay $1 three times a day: about $3 a day, or roughly $90 a month, on top of trading fees. High funding in a crowded market can be several times that.
Other crypto-specific features
| Feature | What it means for traders |
|---|---|
| Liquidation cascades | High leverage means forced liquidations can chain together, causing fast wicks through levels |
| Open interest | Total open derivative positions; rising OI with rising price shows new money entering |
| CME futures | Regulated Bitcoin and Ether futures that don't trade at weekends, creating weekend 'CME gaps' some traders watch |
| Exchange risk | Your counterparty is the exchange itself; exchanges have failed before |
Key takeaways
- Crypto trades 24/7, but activity still follows traditional market hours and drops at weekends.
- Perpetual futures have no expiry and use funding payments to stay close to spot.
- Positive funding means longs pay shorts; high funding shows a crowded long side.
- Liquidation cascades, open interest and exchange risk are crypto-specific factors to watch.