RE: Intro to Crypto Investing: bitshares, bittrex, blocktrades, coinbase, ICOs, livecoinwatch, mining, nicehash, and more. Saturday 11am EST
@aggroed I respect very much what you do for this community, but I need to get something of my chest that has been driving me insane since I arrived on planet steemit.
Everyone talks about crypto trading! But NOBODY is actually crypto trading! If you are not using a defined stoploss and a defined target, then you are not trading. You are not even investing! People are actually speculating! That is the very best you can do in markets with no history and bugger all liquidity. Only markets with large liquidity can be traded reasonably safely. Your capital can be blown apart in seconds in a non liquid market like most cryptos are right now! Even stoplosses will be no good to you as they can be jumped due to lack of liquidity.
People like to call it crypto trading because it sounds sexy. So please, lets get it right. All we do here is speculate.
Rant over 😎.
Thank you again for all you do for the steem community. I am looking forward to the show.
Is the liquidity aspect an increase in risk and a decrease in stability in the value of cryptocurrencies? Yes, there is speculation involved. Upvoted.
Absolutely correct @joeyarnoldvn. In a market with a low market cap there will be low liquidity, and so one big holder can move the market on their own. Even in a massive market like forex, where a few trillion are traded daily, the bigger players like the institutions can move the market for a distance. Remember beneath the price charts it's about the number of buy and sell orders on the market books. Thank you.
Love the competition.