Things you should know before trading with high leverage..
In crypto we don't have real market makers but self-appointed ones like Binance and others like them who manipulate and defraud the market directly. They are both brokers and market makers, which is actually a legal illegality.
The way you have to enter a trade is an equation like this: risk vs your own liquidity vs the internal risk of the asset The norm is not to enter with more than 30% of Equity (your own money), and from this amount to reach a maximum of 30% of buying power / leverage - under the conditions that you are no longer exposed to any other asset Riks - quantification:
You must take into account the expansion in the positive (how much the price of an asset increased) or how much it fell (expansion in the negative); the volume in the market at that moment and more than that the history for the last 5 days and then for the last 6 months.
If you throw away 100% or more of your leverage (this is not called a trade) you have every chance of breaking your account because the position will not withstand the inherent fluctuations from that moment
The allocation of liquidity in the position is much more important than the selection of a trade
To know: compared to the stock market or other assets (forex, stock, futures), the crypto market has deviations in this period of 120%-150% higher - this means that the expansions compared to the mentioned asset classes will be even bigger and if you don't allocate properly you will find yourself without an account.
It depends a lot if you want to do day trade, swing or investment. Tradeing in crypto is a different planet compared to entering all kinds of projects, and not many people understand that.
I w recommend larger extensions, namely parabolic ones Otherwise, the short works 70% better than the long (which is unpredictable and has no exit thresholds)
That's all on this topic
In crypto we don't have real market makers but self-appointed ones like Binance and others like them who manipulate and defraud the market directly. They are both brokers and market makers, which is actually a legal illegality.
The way you have to enter a trade is an equation like this: risk vs your own liquidity vs the internal risk of the asset The norm is not to enter with more than 30% of Equity (your own money), and from this amount to reach a maximum of 30% of buying power / leverage - under the conditions that you are no longer exposed to any other asset Riks - quantification:
You must take into account the expansion in the positive (how much the price of an asset increased) or how much it fell (expansion in the negative); the volume in the market at that moment and more than that the history for the last 5 days and then for the last 6 months.
If you throw away 100% or more of your leverage (this is not called a trade) you have every chance of breaking your account because the position will not withstand the inherent fluctuations from that moment
The allocation of liquidity in the position is much more important than the selection of a trade
To know: compared to the stock market or other assets (forex, stock, futures), the crypto market has deviations in this period of 120%-150% higher - this means that the expansions compared to the mentioned asset classes will be even bigger and if you don't allocate properly you will find yourself without an account.
It depends a lot if you want to do day trade, swing or investment. Tradeing in crypto is a different planet compared to entering all kinds of projects, and not many people understand that.
I w recommend larger extensions, namely parabolic ones Otherwise, the short works 70% better than the long (which is unpredictable and has no exit thresholds)
That's all on this topic