Post
Topic
Board Altcoin Discussion
Re: What should newbies pay attention to when trading with virtual currency?
by
passwordnow
on 07/01/2021, 13:17:25 UTC
looking at the high volatility of the alt season with Doge opening the floor gate for the alt season session. there are lot of risk involve  in the market ,  for example pay attention to the exchanges you which to trade your prefer crypto currencies , that been said , liquidity of the exchange should be a looked into , because this determine the rate at which your orders such as buy or sell  are executed , take for example you prefer to trade in an exchange that has low liquidity , if the price of BTC is at $38,000  and you wish to  sell  your holdings , due to low liquidity your asset might not be sold at that amount you want . so this should be what you need to be aware while applying risk management in this alt-season. supporting or contradicting opinions are welcome for discussion.
There is a limit order and market order for which the traders have the option to sell the price at the price wanted by the market or at the price that they desire to sell at. But why would a newbie prefer to trade into an exchange that has low liquidity? That's already a bad start if they choose those exchanges that don't have much volume for the altcoins that they are holding. It is a good preference to be with the exchange that has a huge volume and liquidity.