Cryptocurrency trading operates differently from traditional financial markets due to its decentralized nature. Instead of adhering to standard market hours like the NYSE or NASDAQ, cryptocurrency trading happens 24/7, 365 days a year across multiple independent exchanges, such as Coinbase, Binance, and Poloniex.
In traditional markets, traders rely on a daily close price to gauge performance. However, in the crypto world, there’s no universal closing bell. Instead, the crypto community has adopted its own concept of a "daily close": the price of a cryptocurrency at 12:00 UTC compared to 24 hours earlier. This provides a valuable snapshot of price movement and market performance.
For traders and investors, understanding the daily close is essential. It’s the same reason why the stock market’s daily close matters — it gives you a brief but insightful summary of market activity.
