Cryptocurrencies and blockchain have revolutionized the world of finance. They have demonstrated a completely new approach to conducting transactions based on the trust of participants. However, the crypto market is one of the most volatile markets, so crypto traders prefer short-term trading.

 

IMPORTANT!!! Risk management is especially important here.

 

Some crypto traders prefer to trade only Bitcoin and Ethereum, while others work only with altcoins (all cryptocurrencies except Bitcoin: Ripple, Solana, Lumens, etc.). In this market, it is impossible to predict which strategy will be winning and which will not. 

 

Crypto trading, it is worth considering:

• volatile market, which implies very sharp price jumps in a short period (several 10 times)
• the behavior of the price of digital assets is difficult to predict even using technical trading patterns 
• huge market crashes (in 2018, the market lost 700 billion US dollars)
• no regulation like traditional markets

 

Despite the uncertainty, digital currencies have proven to be quite liquid assets that can provide investors with an alternative to traditional financial products. However it is worth remembering that high liquidity means low volatility/risk, which leads to low profit or loss. Conversely, low liquidity means high volatility/risk (which can lead to large profits or large losses, depending on the strategy).