Topic: What do crypto traders look at? (Read 189 times)

It's your choice to deal with BTC alone or trade multiple pairs, however, my experience over the years always shows that it's better to stick to one pair than unnecessarily stress yourself with two or many of them.

Cryptocurrency is a market just like the forex market, you can trade it with your technical, fundamental and sentimental analyses. The crypto market is such that even works well with hypes and sentiments, which makes it work better with sentimental analysis, especially if there are events that back that up.

You will find thousands of answers to this question that vary according to trading strategies and trading pairs. Some prefer BTC/ETH BTC/USDT BTC/ALT ALT/USDT ALT/ALT pairs according to their trading strategy.

 - For example, the BTC/USDT pair depends mainly on support and resistance points, technical analysis and news. When there is stability in the Bitcoin price, you may move to another pair such as
 - BTC/ETH, which usually changes when the Bitcoin price changes sharply, as liquidity moves to Ethereum once Bitcoin is pumped.
 - ALTCOINS pairs are linked to events such as burning, adding, conference, technical update and other things that you find by following the currency news.

Altcoins are pump and dump so altcoins have that chart pattern that can result in very big loss in Spot trading. If you trade with leverage or futures, your loss will be bigger and more painful because your trading position will be liquidated.

With a same trading pair, same price change, you will have bigger loss in leverage, futures. When traders stuck with position after a crash, it will be hard choice to leave or to stay. Staying instantly means you accept that loss and ready to move on. If you stay, you will have chance with price recovery after a long time, but also face with risk of more falls and bigger losses.

This is one question many traders up till today do not have answer to, everyone has his own metrics of trading pair. Some traders start with trading BTCUSDT pair as its direction most of the time is where other pairs also follow and they then check multiple pairs and see which one actually goes with the chart pattern of bitcoin or have similar pattern.

Others look at the top 10 base on market cap and trader them this are traders who are afraid of manipulation as the higher the market cap sometimes the lesser the manipulation.

There are traders who then trade newly listed coins or very volatile coins, they simply use some indicators to check when the pairs are over bought immediately after listing and then sell them.

Then there are traders who uses random pairs for trades most especially daily traders, they use aggregators like Coinglass to check metrics like liquidation heat map on both shorts and longs, open interest with pairs having the highest of it volume.

One thing though that most traders do in both forex and crypto is they simply stick to some pairs as there favourites which is the best strategy to me

As a rule, each trader has a limited number of trading pairs about which he has maximum information. One of these main trading pairs is BTCUSDT, which accounts for half of the deposit as a risk reduction. New trading pairs are added to these pairs, which are usually associated with listings on the exchange or a positive news background.

Other than btc, there are a few alts I am closely watching and I am not interested in pretty much anything else.

Ltf, doge, xmr and btc are the only assets I am watching lately. I don’t care if some newly minted dog/cat coin made 1000% in a day. I don’t follow it and I don’t trade it.

Know that there are 10 thousand different Crypto in the market and you can’t track them all. You can’t trade them all too.

It is probably the safest choice to trade only btc against usdt though. The more complicated it gets, the harder it will become to make profits. Keep it simple, safe and effective.

How do you traders know what to trade with the many cryptocurrency pairs available?
-Always look out for best entries on which usually pertains about dropping or bearish market on which this is the sweetest spot to enter.
-I do only have 2-3 pairs on which i do want to trade up and having tons will be that somewhat confusing.
Stick into the no. of pairs on which you can be able to handle out.

Do you only trade BTCUSDT or you mix it up? if you mix it up, how do you know what to trade.
-Totally depends yet im not really just that trading up with BTC/USDT but also in other pairs as well. On the moment that i do saw up opportunities then this is where i do dive in. So it will really be that up to you on this case.


In forex, you can have traders look at things like the forex calendar to know the currencies that will have high liquidity based on news or events, what do crypto traders focus on?
-There's no such thing about something like on forex calendar in crypto world but you can somewhat having that good checks about market events usually on crypto news sites on which you can be able to apply into your FA.

Thanks for your explanation.

If we’re talking about the proper way to trade while minimizing risks, it’s better to stick with real coins that are stable (even though still volatile), rather than meme coins. Meme coins can dump anytime because investors tend to jump from one hype coin to another. By their name alone, you can tell they don’t really contribute much to the community, they’re more like a joke, which is their purpose, just like DOGE.

not saying everyone should avoid them, but people need to understand that meme coins are high-risk assets. They’re not ideal if you’re not familiar with trading or if you’re not comfortable taking big risks.

Less manipulation does not mean less liquidity. Most exchanges these days are listing coins that have good liquidity at least. But a coin volatility will increase during manipulation. What you will noticed about manipulated coin is rapid increase in the price in just a short period of time. Also the coin will rapidly fall in short period of time.

This is an example of a coin that was manipulated. The fall happened within a short period of time but I put it in weekly candles for you to easily understand it or you search for the coin on the exchanges that you are using to check it yourself.

@OP, in my opinion, if you are newly starting crypto trading, it better you go with Bitcoin because the price can not easily get manipulated just like some altcoins whose price are being manipulated easily and can be very volatile. You don't have to trade different pairs before you can become successful in crypto trading,  some successful traders are only trading Bitcoin while some are not also trading more than 3 different pairs.

What does manipulation mean in terms of liquidity or volatility? Less manipulation, less liquidity/volatility? or what please?

-Stick into 2-3 pairs on which it is better to have this kind of action rather than on taking tons of pairs out there and of course you should be that trying out to find about the volume and marketcap. You can be able to see on how its been traded for 24 hours and if you do see such volume is big then you can say that trading activity within this pair is really that highly active and if you are a short term trader then you can play on with these waves but if you are a long term holder then stick simply into those top coins in the market on which not only with Bitcoin but also into those established top altcoins as well.

If you are trying out to accumulate Bitcoin then having that pair with USDT is somewhat that better rather than on having some other pairs with crypto on which price are volatile on which this is not that comparable or the same with stable coin pair on which you can be able to take profit without affecting it out when it comes to value.

Market events and sentiments or simply fundamentals are still that relevant into this space on which it will be needing up for you to be aware at the moment that these news comes out, but we do know that crypto market isnt something that will be that always be affected with fundamentals and this is how this market is so unpredictable and speculative on which it could be able to move without any basing news around or simply can move significantly without seeing anything.

The point they are focusing on is usually how they will gather money to expand and day trading is not everyone that it actually works for but the few that are it does not work for should leave it alone and try something else out but people always fail to understand things like this. And meme coins are risky but the same time gives profit to those that knows how to buy them because it's as if mem coin have their own specialty when it comes to buying and it's like one of the worst to buy the same time.

And some it might not just be about the bull run they hype and they dump the coin of people to buy and the best thing to buy should not be more than bitcoi you have less issues like Heavy dumps and no recovery and there are altcoins that you invest in and you will also get  results just that when making selection it should be somthing that people will comsider nice and it won't be as if there is mistake somewhere.

It depends on personal preference what seems to work well in terms of getting profit for a trader. However, the crypto daily trading volume and mcap are very valuable when choosing the crypto to trade.
Nevertheless, if you're a smart trader the new altcoin that has huge hype, and will be listed on tier 1 exchanges are also good for quick profit because most of the altcoins always make at least x50.

Well maybe right. But when those users mentioning I traded this memecoin, simply means they did do a trade but only means its seasonal. There are some traders who do day trade for memecoin like if the profits gain 2x or more then already out or take profit in a sense. Likewise a traditional day trade.

Gambling traders do active trades with many trading pairs, from Bitcoin to altcoins and from good altcoins to shit altcoins.

Professional traders are more careful with trading activities, and only trade if entry is good, and chance to get profit is good too while risk is small. Professional traders can ignore trading if the market is not good, and there is no safe entry. Professional traders don't gamble with their trading positions and capital, and don't want to be actively trading with many trading pairs.

Safety of capital is biggest difference between amateur, gambling traders and professional traders.

I trade mainly the BTCUSDT market, but each week what I do is set aside an amount that I can afford to gamble with then look for the most volatile new coin in the market and trade on them, such trading pair is just for the short term but you can never see me choosing more than one coin plus bitcoin for the week.

What I have noticed over time is that, whenever I mix multiple trading pairs, I easily make a lot of losses compared to when I concentrate on bitcoin alone or bitcoin with a coin just for weekly speculation and trying luck while waiting for the bitcoin trading pair to move the direction I want it to.

Calling them investors is more fitting than traders. I think OP was referring to day trading, similar to forex. Meme tokens are more like a seasonal trend, they typically pump during bull markets but crash hard during bear markets. Compared to Bitcoin and other high-volume altcoins, there’s not much consistent action with meme tokens. With Bitcoin and those altcoins, you can trade daily and still see significant movements, making them more suitable for active trading.

That depends on trader's like. There are different traders who pick base on what the narrative are today. Some check the marketcap and try to scalp from it to go to higher mcap. Different approaches, some prefer old or blue chips coins like bitcoin since the volatility isnt that much compared to some alts.

Some too prefer memecoin that could give some high gains or bigger losses.