TRADE CRYPTO LIKE A PRO
Crypto volatility is becoming crazy. We have seen bitcoin as high as 70 k USD and as low as 30 k USD in just a month, and now it’s going up again. This is while less than a year ago, we were talking about Bitcoin being 9000 dollars. Almost all other cryptocurrencies have also reached their all-time high during this time. So, as a result, most people have lost money in this crash, but have the crypto expert traders done so as well? How can someone actually predict this volatility? Does crypto technical analysis really work? And how should we trade crypto like a pro?
These are the questions that we will go over in today’s blog.
Have pro crypto traders lost money in the last crypto crash?
It’s difficult to say, first of all, how do you define a professional crypto trader. Many people are professional currency and forex traders but might not be expert crypto traders. A professional crypto trader is proficient in chart reading, and general knowledge of cryptocurrencies follows the news and knows how the market would react to certain news. In this example, we know that multiple factors affected the crash, but the china ban on crypto trading was among them. And, how would a pro-crypto trader react to this news?
Like everything else in the world, China is the largest crypto market as well. Most crypto is mined and sold in China. Even if not enforced, a china ban would certainly affect the market as other major investors will sell off, even if the Chinese won’t help themselves. But that’s not all. A pro-crypto trader is ready to buy again after the crash with the lower price tag. This is exactly what we’ve seen happen in the past month. Hype then crash then rise again.
Can anyone predict a crypto crash?
Unlike what most people think, crypto is a completely new and untested financial instrument. It’s not like paper money (currency) or the banking system, it has only been around since 2008, and to this date, the technology is not finished and is still being developed. That’s why it’s tough to predict a crypto crash, meaning it’s possible to limit the damage but most probably not eliminate it.
Is technical analysis reliable for crypto trading?
As mentioned above, crypto is a new financial instrument. It’s not cash. It’s not a contract (although we do have smart contracts within crypto); it’s not a stock or a bond. But at the same time, it functions as all of them. There is an element of crypto that makes most people think technical analysis is the best thing for crypto and that it’s decentralization and transparency in transactions. While that is completely true, you should know that not all crypto is decentralized, and while decentralization is true in others, the whales have some power in shifting the market narrative a bit. The Chinese ban is an example of that, the Chinese people didn’t sell off immediately, but large investors, whales, and institutions sold out of the fear of its crash by the Chinese people selling off.
So technical analysis wouldn’t be much helpful, it couldn’t hurt, but it wasn’t made for crypto. Following the news and market research might be better options for crypto.
Trade crypto like a pro
f you want to trade crypto like a pro, follow the news and doubt its effect on crypto. With crypto being decentralized, you might be better off putting yourself in the shoes of the majority, see how they would react to the news, and trade with that in mind. Don’t buy in the hype, and don’t sell emotionally. Crypto is very volatile. It can drop 10 percent and then rise 40 % all in a week. Remember, at the end of the day, there is no human being on earth capable of 100% profit all the time. You’ll have good days and bad days. The key is to aim for making a profit and try harder when you lose some.
Bitunivex.com is a regulated Australian cryptocurrency exchange that offers its services globally. Follow our social media on Instagram @BITUNIVEXOFFICIAL Twitter @Bitunivex1, Facebook Bitunivex We have a blog at bitunivex.com/blog with daily updates as well as an exclusive newsletter. Also, you can find your answers on our knowledge base here and find relevant articles and FAQs. Finally, if you have any other questions you can raise a ticket here.
Start your trading at app.bitunivex.com with free registration and a free wallet with the possibility to hold more than 30 cryptos in one place with military-grade encryption.
