On 23rd June, CoinEx organized a Telegram AMA with Kevin Mcoin from Crypto Club on YouTube, who is the top blockchain YouTuber with over 200k followers. Keven shares valuable insignts and helpful suggestions on how to trade futures, how to trade using levergae in today’s market and what’s the future market trend. Also, he answers five questions raised by participants after the sharing and his lucid explanations of complicated content win a large outpouring of favorable comments.
Here’s a summary of Kevin’s one-hour live chat into this passage.
Leverage Trading
It’s no surprise that you can maximize your gains with leverage, especially on the CoinEx platform, where users can use margin to borrow coins through mortgaging assets. Trading pairs with different margin ratios correspond to different mortgage rates. It supports trading pairs with a 5X margin, and the pledge rate is up to 80%.
Let’s talk about how to trade using leverage during this market since it is pretty volatile, and many of you have maybe not experienced something like this in the past. We make money as the market moves, so volatility can significantly assist us when making the right decisions. Still, it could also be very negative if you are not appropriately treated. Think of these times as an actual test of your skills, if you are trading correctly, you will be rewarded even more but if you’ re trading poorly, you will pay the cost, literally.
The key when trading is to always look out for your expected value returns. You want to minimize the expected output while minimizing the input. In other words, you want to make as much as possible while risking as little as possible, and you can definitely do this with these volatile markets and profit further.
The first thing I will say is required to trade during a volatile market is to know that you’ re prepared to even trade in a volatile market. If you’ve never experienced this before, it can be quite different. Not only does the price action move completely different, but your emotions will also be completely different. You may believe you are an experienced trader, but everything can change in a new market.
Before jumping into the market, let yourself understand that this is entirely different, and be aware of the possible outcomes so that your decision-making remains sound. You don’t want to start revenge trading or making arbitrary decisions.
You must stop orders to limit your exposure to risk while sticking to a strategy. It will also be essential for you to set charges to take profit at certain levels, as greed may confuse you and get you out of your strategy.
Now for the people who want to focus on short, this part is for you. How do you know when to short? Well the key is to find projects that are not yet completely beat down. The way to identify this is to look at the market trend and see what is happening. For example, if there’s a lot of bad news surrounding a certain project, maybe it would be a good idea to open your position on it if you determined that it does not have good fundamentals.
Now something I want to say is that it’s OK to lose, as long as you win more than you lose. No traders 100% successful. That does not exist, if someone tries to tell you there, then they’ re selling you a fake course or selling you a dream. Some weeks you lose, and some weeks you will win. The only thing that truly matters is winning more than you lose or at least winning in larger sizes overall.
The last thing I want to say for this section is to use technical analysis as your friend. This is something you should all be using while trading. If you are a long-term investor, they should not be the only thing you use, but they should still be something you look at.
Future Market Trend
It’s no secret that we are in the largest bear market we’ve seen for crypto yet. The most money we’ve seen is being pulled out of some of our favorite coins (BTC, ETH etc.). There’s plenty of factors that are bringing selling pressure to the markets that have made us so much in the past years. First of all we’ve seen the fed trying to slow down the high growth markets and inflation by raising interest rates, most recently to 0.75, but this is just the beginning of that as many analysts are predicting a dozen more rate hikes incoming. On top of that, at the beginning of these rugged markets its been proven that some massive cryptocurrencies like Terra Luna couldn’t be sustained. Now that we know what has happened let’s take a look at the future trends of what could happen. In my opinion (NFA) this downfall is a gift to be able to buy into the future, some volatility in market prices don’t change the fundamentals of a revolutionary infrastructure. People are getting liquidated because of high-interest rates. We are returning to fundamentals, this is what bear markets do. We go back down to the basement and we rebuild the foundation stronger and stronger.
What do I think is gonna happen in the crypto market, for months I’ve been preaching to short all cryptos simply because of the rising interest rates. Sometimes things are as simple as just one thing causing the whole market to collapse. Some companies falling out and going in solvent is also another reason why this bear market has been accelerated. With that being said I think that right now is a great opportunity to start look at the market as a buyer, I believe that we may go a few days or weeks and consolidate after what just happened but after this I believe they will be a next leg down. I am prison predicting that ETH will fall to 800 for token and below. So as a trader using CoinEx you should all start analyzing what opportunities you see in the market.
Ethereum will not be the only crypto that falls many other large group those will fall and even stable coins. I’ve been keeping my eye on USDD since it has D pegged, I think that because of its relationship to Tron, Tron will also fall very badly. With that being said I won’t be putting all my eggs in one basket but I will definitely have some small exposure to this.