Here again, it is important considering a number of factors when choosing a stop loss level correctly. Most traders fail when they fall in love with a trade or the coin itself.
What is altcoin / crypto trading?
And nobody wants to be the one who is left holding it. Meet FOMO fear of missing out: But what do we do now? Very simple, Keep moving forward. Needless to say, the next step is usually the bright red candle which sells through the whole order book. This statement tells the story of the market profits from our perspective.
To be a profitable trader, you never look for the peak of the movement. You look for the small profits that will accumulate into a big one. Manage risk wisely across your portfolio.
For example, you should never invest more than small percentage of your portfolio in a non-liquid market very high risk. To those trades we will assign greater tolerance — the stop and target levels will be chosen far from the buying level. The underlying asset creates volatile market conditions: Most Altcoins are traded according to the Bitcoin value.
Bitcoin is a volatile asset relative to FIAT and this fact should be taken into consideration, especially in the days when the Bitcoin value is moving sharply. Bitcoin and Altcoins have an inverse relationship in their value, i. When Bitcoin is volatile, our conditions for trading are kind of foggy. Foggy Market Tips for trading Altcoins: Most Altcoins lose their value over time. They simply bleed their value away slowly sometimes rapidly. Take this into account when holding Alts for the medium and long term, and of course choose them carefully.
What kind of Alts are recommended for the long term? Remember, this is only when there is a reason for making a trade.