Uploaded on Feb 16, 2022
Cryptocurrency trade is a 24x7 game which means you can never take your eyes off the screen.So how do the modern crypto investors manage cryptocurrency market live trading? Is sleeping an option for a trader? Do they have a life?
24x7 Cryptocurrency Market Live – Trading Challenges and Workarounds
24x7 Cryptocurrency Market Live – Trading Challenges and
Workarounds
The crypto-craze has changed a lot in the world of finance and stock trading. When Bitcoin
arrived, most people never believed it to hold any kind of value. And today, this investment
avenue has managed to lure real talent and millions of dollars from Wall Street turned
images of dogs into digital assets and brought on a slew of trading jargon that is enough to
bamboozle even the most seasoned crypto market analysis experts. Another aspect that
crypto trading has impacted has been the everyday life of an avid investor. Traditionally, an
average stock trader could always unplug on Sundays until 6 P.M. New York time, when
S&P 500 and other index futures resumed trading after the weekend pause. But those days
are long gone. Cryptocurrency trade is a 24x7 game which means you can never take your
eyes off the screen.
So how do the modern crypto investors manage cryptocurrency market live trading? Is
sleeping an option for a trader? Do they have a life?
Valid questions – especially if you are just starting out in the world of crypto trading. This
article will solve all your qualms about the 24x7 nature of cryptocurrency market live
trading and give you tips on how you can make your life easier as an investor.
Cryptocurrency Market Live – the ticker never sleeps, never stops, never yields
Let’s get the bitter truth out in the open right at the start – the crypto market operates
24x7. Unlike regular stocks, crypto isn’t traded on a regulated exchange. Instead, there are
thousands of exchanges providing platforms for trading this stock across the globe,
meaning that the market ends up being open all the time. Cryptocurrency market analysis
suggests that different time slots witness different volumes of trade during the day. There
are times when global market activity is extremely high while others when the trade
volumes are low, resulting in weaker exchange rates and difficulty in selling stock. As a
trader, you must be well versed in these market timings to ensure that you aren’t left
sleeping while investment opportunities come and go.
Cryptocurrency Market Live – Multiple exchanges only add to the mayhem
Once you start acquainting yourself with the world of cryptocurrency analysis and
predictions, the first thing you will notice is the presence of different prices for the same
asset on different cryptocurrency exchanges. Several factors are responsible for this,
including the trade volumes that an exchange witnesses. These variations can be
attributed to quite a few factors like:
·Liquidity: Trade volumes can be massive on the larger, more popular exchanges like
Kraken, GDAX, Gemini, and the like. Conversely, these volumes tend to be much smaller on
the newer, less popular exchanges and these variations can impact the prices of coins
traded on them.
·Pricing: Since the crypto market doesn’t follow any standardized pricing strategy for
stock, no one knows what it is ‘supposed’ to cost. Hence, exchanges leave coin pricing up to
market forces like supply and demand.
·Compatibility: It is quite a messy, cumbersome and expensive task to move your money
between exchanges. This exchange compatibility issue doesn’t allow traders to switch
between exchanges to take advantage of price differences and hence, the variations end up
persisting for longer than it would be possible for an efficient market.
Traders would therefore have to take into account the impact of multiple exchanges on
market volatility. Price variations, trade volume disparities, and working hours – all
contribute to the mayhem that exists in the already chaotic crypto market.
Cryptocurrency Market Live – factors that can make life even more difficult for a
24x7 trader
Influencer Impact
One of the most baffling aspects of cryptocurrency analysis is the impact of social media
and its influences on market numbers. This investment sphere has been more responsive
to the tweets of billionaires and celebrities than any other market out there. Many
renowned personalities like Elon Musk have been repeatedly accused of manipulating the
market through their online following. You may think you had a good trading day and log-
off, only to find the market in a total state of disruption when you wake up – all because
someone, somewhere posted something about a coin on their social media handle and left
the market in a tizzy. As a trader, this factor really doesn’t make your life any easier.
Whale trading
Individuals and institutions who hold large amounts of stock of a particular coin are known
as ‘whales’. Since their holding is sizeable enough, they gain the power to manipulate the
value of certain cryptocurrencies by placing specific trades. Whale traders can put massive
sell orders at values lower than other sell positions in the market, forcing the prices to
drop, thereby setting off a chain reaction of panic and instability that is tough to control.
This ‘sell wall’ tactic is often used by whales to artificially bring down prices to a level
where they would like to start accumulating more coins again. 24x7 trading creates
multiple opportunities for whale traders to artificially manipulate markets and create
trends out of nothing, giving the average trader a hard time reading the market and making
any kind of cryptocurrency analysis and prediction.
Manipulation
Market manipulation adds more volatility and chaos to the world of crypto trading, making
it even more unsafe and tricky for newbie investors to handle. No amount of crypto market
analysis can prepare you for a possible pump-and-dump, wash-trade or spoofing. In a 24x7
market that is completely at the mercy of market forces on a global scale, artificial market
manipulations carried out by institutional traders, whales or influential investors can
wreak havoc on asset values. There are times when these manipulators don’t even need to
actively trade any asset. A cryptic tweet is all that may be needed to get an asset to soar or
take a plunge to the bottom. As a trader dealing in cryptocurrency, you need to be prepared
for these volatile market movements at all points in time.
Hashrate
This is where crypto trading becomes even trickier. Hashrate refers to the computational
power for verifying transactions and adding blocks in a blockchain. It represents the
number of individuals and entities that are participating in the mining process and hence, it
denotes the kind of volumes one can expect as add-ons in the current number of coins in
circulation. Hashrates have a directly proportional relationship with coin prices as more
mining introduces more coins and brings more people in to buy and sell this newly mined
currency. Experts predict that any squeeze in mining margins will lead to the consolidation
of coin mining operations, especially those being carried out by prominent entities. Any
changes in these hashrate numbers can therefore impact cryptocurrency analysis and
predictions in a huge way.
Legalities
One of the biggest changes that every trader must be wary of is the advent of legalization,
regulation, and centralized management in the world of crypto. As governments across the
globe are waking up to the realities of cryptocurrency, a slew of legal complications is
bound to be expected. A market that is operational 24x7 today may change altogether in
the near future when entities such as the SEC begin formally regulating it. Whether such
developments will be welcomed by the market or rejected is yet to be seen. But volatility
and chaotic movements will be part and parcel of the everyday life of investors as these
changes take effect, at least until the dust settles.
Cryptocurrency Market Live – workarounds to use against these challenges
No – we will not be telling you to quit the world of crypto investments altogether to save
yourself from its evils. Instead, we will help you find workarounds to manage the volatility
and erratic behavior of market movements so that your life as a trader can get a little bit
easier. Here are a few ways in which you can face the challenges that the crypto market
presents for investors:
·Be Informed: When it comes to cryptocurrency market analysis, there can be no substitute
for timely information. Use multiple sources, set up notifications and alerts, follow the
crypto celebs and keep a close eye on asset movements to ensure you are not caught
sleeping as trends emerge.
·Historical prices: Basing your investment decisions on historical price trends can help
traders avoid falling prey to whale tactics like wash trades on multiple exchanges.
·Diversification: Not putting all your eggs in one basket is age-old advice that holds true
even today. Spreading your investments over a healthy mix of assets as per your risk
appetite will ensure that you don’t lose everything to a single disruptive event in the
market.
·Bot Trading: Computer programs can help you buy and sell specific cryptocurrencies at
specific prices or value thresholds in order to generate a profit. This simple tool can help
you take advantage of market movements even when you are not logged into the trading
platform.
· SIPs: Systematic Investment Plans in cryptocurrencies can hep an investor get a better
entry point in an otherwise chaotic market. You can use these to your advantage and take
at least some of the load off your back of finding the right deals for your portfolio.
Conclusion
Volatility will be a part of your life as a crypto investor, at least until this market matures or
gets regulated. A 24x7 open market will have trades coming in from across the globe and
trends cropping up left, right, and center. You may not be able to insure yourself against
each of these erratic movements but you definitely can make the most of them by using the
tools available at your disposal. After all, that is what makes crypto exciting!
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