strong buy
Why the BTC/USD Pair Is Chosen for the Challenge
Many might wonder why a challenge is being made on the BTC/USD pair, thinking that altcoins could be more profitable and faster. The explanation is that, although it could be, it's not guaranteed. Altcoins' higher volatility means smaller leverage is necessary, as prices can swing wildly within a minute on seemingly obvious news or events. This not only increases potential profits but also raises risks. Regarding liquidity, while initial deposit increases might handle a few trades, higher levels would encounter market liquidity issues on altcoin pairs, making market orders difficult and limit orders potentially unfilled. Trading bots and market makers could exploit such irregularities for profit. Therefore, it’s better to set clear rules from the outset of the challenge and stick to them to avoid pitfalls when larger deposits are involved.
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AI Analysis
The decision to undertake a trading challenge on the BTC/USD pair rather than altcoins reflects a strategic choice rooted in market stability and risk management. Bitcoin's liquidity and relatively lo...
AI Recommendation
Traders should adhere strictly to the rules established at the start of the challenge. Relying on Bitcoin for the initial phase allows for a more manageable risk profile and a better learning curve. I...
Disclaimer
The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.
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