There is a common misconception that the cryptocurrency market is a scene only for large players, and there is no point in even trying to start trading. Still, thousands of investors join the crypto industry daily and manage to make a profit. If you want to maximize your earnings, you should never succumb to emotions but apply proven strategies implemented by experienced players.
In this article, Ellyx has put together 5 advanced strategies utilized by funds and proficient traders. By following these tips from the Ellyx team, you will surely enhance your profitability in the market.
1. Sell assets when liquidity is high
The higher the liquidity, the more successful the trade is. Ellyx recommends:
– Carefully select the time of active trading – the best time to start selling assets is when three major trading sessions in the US, Asia and Europe intersect.
– Assess the spread – the deal will be more favorable when the spread between the bid and ask prices is minimal.
– Never sell larger volumes during the hours of low liquidity, as this can result in price collapse and reduced profits.
Selecting the right time to sell your assets is the first step towards successful trading.
2. Utilize a scaled exit strategy
Ellyx recommends avoiding selling your entire asset at once and advises exiting the position in several stages:
– Sell a portion of your asset during the first upward move. This is a common profit-taking zone for smaller traders.
– Sell the fraction during the next surge, when large players and investors enter the market.
– Retain a part of the asset for potential growth if the movement persists.
This strategy supports higher profitability and prevents premature position exits.
3. Analyze hidden market signals
New traders often make a mistake concentrating purely on the price of the asset, whereas Ellyx recommends studying alternative trading indicators to gain a deeper understanding of the trends:
– Order Book – follow the positions of larger orders. Fake liquidity walls might be a misleading signal.
– Open Interest (OI) – when the OI is increasing with only a minor price movement, this may be a signal that the asset is accumulated by large investors.
– Long/Short Ratio – a substantial imbalance in leveraged positions frequently precedes forced liquidations and sharp market swings.
When you learn to recognize these hidden signals, you will have an obvious advantage over less experienced traders and stay ahead of the game.
4. Instead of market orders use algorithmic trading
By placing a market order, you confirm that you accept the best current price of the asset, which may lead to slippage. Ellyx team recommends using these simple strategies instead:
– Place limit orders to execute trades at pre-determined rates and avoid price fluctuations.
– To minimize the market impact, utilize TWAT and VWAP (Time-Weighted Average Price and Volume-Weighted Average Price) strategies when trading larger volumes of your assets.
– Think about using trading bots to automate order execution and ensure progressive asset liquidation without causing abrupt price changes.
Ellyx points out that by applying algorithmic trading you can optimize returns and significantly reduce trading costs.
5. Exit the position before major market events
Large investors often sell their cryptocurrency assets before key market events and announcements. Ellyx team highlights the following:
– Exchange listings and network upgrades – the prices typically skyrocket in anticipation but drop swiftly after the event.
– Reports and statements from major crypto-related companies have a heavy influence on market perception.
– Announcements regarding interest rates from the Federal Reserve impact market direction.
Being aware of these changes helps you smartly exit the positions before high-volume sell-offs.
Selling cryptocurrency is not merely about placing an order. It is a financial art that requires detailed analysis and a strategic approach. Applying simple insider techniques from Ellyx, you will master your trading skills, sell assets profitably and minimize risks. Follow these strategies and do not give in to emotions, so your trading will reach a whole new level with Ellyx!