Keep stop losses my friends.
If the exchange or app you're using for Cryptocurrency trading does not have a Stop Loss function, the intention is to transfer money from the retail HODLers and traders, to the whales. In the same way Robinhood is designed to feed the market makers data.
In this past 2 days we've seen 200 billion dollars exit the crypto market (likely into commodities/precious metals). During that wealth transfer, folks who were watching CNBC or just getting into BTC because they saw Elon Musk or other big names talk about, had their money taken.
Obviously, if you had gotten in before February you were in a much better position for massive gains, and if you used stop losses. You have had a chance to buy back anywhere from 10-30% cheaper. It's been a golden opportunity to accumulate even more cryptocurrency. However for the novice retailer, it could be (really is) a massive wealth transfer.
Each new in flow of novice crypto enthusiasts present new scalps to take for whales. So your first lesson(s) should be Stop Losses are your best friend and if the platform you're using does not have them, get a new platform.
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Really great advice! I had never looked at it that way before in regards to the exchanges intentionally not offering them. But it makes total sense. I will definitely look around for "better" places to do exchange trading. Have any recommendations?
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Binance, FTX, Gemini, Binance US, Coinbase.
The apps like Robinhood, Abra, Voyager are easy but you actually don't own any of the crypto, and can't stop loss as far as I know.
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