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Cryptocurrency for Beginners

How safe is Crypto trading? The truth, if you are just starting out

1 min read
Experienced forex and stock traders will be the first to tell you that each market is different and past experience does not matter.

How safe is cryptocurrency trading?

Cryptocurrency trading is as safe as trading strategy that you have chosen.

The better the strategy, the higher the yields.

The better the indicators chosen, the lower the risks.

 

How safe is cryptocurrency trading?

Experienced forex and stock traders will be the first to tell you that each market is different and past experience does not matter.

Established technical forex and stock traders tend to prefer to stay away is because most traditional trading strategies do not work on cryptocurrency.

Their strategies were designed for stock options and not for cryptocurrencies.

 

What are the Risks?

Cryptocurrency trading considered high risk because it is not only extremely speculative , but as it is unregulated, it frequently prone to pump and dumps.

 

Low Liquidity

During a bear market, retail trading volume is low which makes prices extremely volatile

Price Manipulation

As cryptocurrency exchanges are not regulated, price manipulation is rampant.

Though recently the SEC has fined Elon Musk for promoting Dogecoin, there are other types of price manipulation that are less obvious

Stop hunts

This type of insider trading is targets leverage traders and not limited only to cryptoland.

Several cryptocurrency exchanges have been accused of having trading desks.

This means that they trade against their customers.

 

How to reduce the risks?

There is only one way to reduce risks and that is through back testing through paper trading and trading simulators.

Tradingview has a replay feature which allow traders to speed up the testing time and spend 5-10 minutes instead of hours.

 

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