Learn Live ICYMI: Mastering the Crypto Market

Despite the recent signs of recovery in the cryptocurrency market, volatility remains consistent. In the latest livestream session, we look at how you can anticipate a market dip and implement reaction strategies. Both new and experienced crypto traders can benefit from several trading strategies while navigating through the dips.

In the eighth episode of our Learn 101 livestream, we explore how to navigate the crypto market using smart trading strategies.

Our new series, Learn Live ICYMI, provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you missed the livestream.

Joining the livestream on Jul 29, 2024, were three distinguished guests:

• Michael Ionita, Founder and CTO of AutoTrading.vip

• Jerry Li, Earn Product Manager at Bybit

• Ether Chen, Financial Product Expert at Bybit 

Under the moderation of Sabrina Chua, Crypto Evangelist and SEO Editor at Bybit, this episode explores current market conditions, smart trading strategies to navigate the crypto market and how to use your knowledge to elevate your financial resilience.

Key Takeaways:

• Market sentiment and major events impact crypto market conditions, enabling vigilant traders to make savvy decisions.

• Several trading strategies are suitable for navigating through crypto market dips, including DCA, HODL and trend-following techniques.

• Bybit offers several tools to help investors profit and earn passive income during market dips and volatility.

Understanding Current Crypto Market Conditions

When asked about the differences between a market correction and a full-blown fair market, Ionita asserts that the crypto market is relatively straightforward as compared to other markets. Says Ionita, “Use the 200 moving average and see if the price is below that.” He warns not to simply act on a one-day dip. If it’s breaking with critical support, however, that’s a good signal.

The Crypto Fear & Greed Index, which is currently at 74, shows optimism in the market as compared to July 2021 when the index was at 51. Ionita adds that in a crypto bull market, “We’re greedy as hell for a few months, and there’s no correction.” He uses additional indicators with the Crypto Fear & Greed Index for clarification.

According to Li, the Crypto Fear & Greed Index is a “current indicator for a future time” that needs to be taken into account with upcoming major events. Chen adds that he sees higher short-term volatility in an optimistic market, stating that he’s often a swing trader.

Ionita believes that most traders don’t have time to constantly watch for news and signals. For these people, he advised, “Following the trend is the best approach.” He has successfully used this strategy, but adds that it’s important to get out before the trend to take advantage of larger movements. He suggests automating trades if you don’t have time to watch the market.

Other Factors to Consider

Li admits that he is “a terrible trader in terms of direction” and takes a different approach: he looks at the market's volatility, instead of simply direction. Li believes the easiest strategy for new investors is to buy and hold. Seasoned traders can use different approaches to take advantage of market volatility.

Chen recommends that traders “invest in a large cap and trade within the altcoins.” He says that risk is moderated when you invest for a longer period of time. Chen describes an investment as holding crypto for anywhere from three months to a year or longer.

In response to one of the questions, Ionita said that one of his biggest concerns about the market is the possibility of a third world war. He mentions that this has a low probability, and that there’s a higher yet still low probability of a successful Trump assassination. These factors could trigger extreme crypto market volatility. Despite the recent correction, he believes a long-term climb is ahead.

Chen is most concerned about the lack of new tech and applications affecting the crypto market. He believes that the market’s growth should be driven by economics as well as internal factors.

Li agrees with Ionita, building on Chen’s comments and citing new inscriptions in this cycle. However, he adds that “you really don’t see a brand-new sector come out.” We’re seeing major institutional investments, so the market is getting bigger yet smaller at the same time.

Trading Strategies to Adopt During Times of Volatility

Ionita describes common HODLing and DCA strategies for trading in a volatile market, but he also has a better solution. In fact, he says, “DCA and HODLing are the worst strategies for crypto on the planet.” He recommends portfolio equity management as a better option, and shared his screen to show in-depth how his strategy works.

Li states that he doesn’t do a lot of market analysis. He doesn’t sell at a low point and get back in at a high point, as Ionita recommends. Instead, he chooses to use DCA and continues buying through the last Bitcoin decline. He adds that “you have to do what suits you the best.”

Chen, on the other hand, analyzes market data points to determine his entry strategy. He mentions that he got in a few weeks ago when there was a big dip, his entry based on the moving average at that time.

Enhancing Your Financial Resilience: Practical Applications at Bybit

During times of market volatility, some traders are interested in establishing passive income. Chen and Li reviewed the structured products available on Bybit used for this purpose, with Chen emphasizing that the solutions Li talks about aren’t related to active trading; rather, they’re passive and automatic.

According to Li, “Structured products are derivative and option-based,” making them more sophisticated and complex. Bybit has structured products for use in a volatile market. With Double-Win, you don’t need to worry about direction. Profits are generated from volatility in both directions. Bybit also offers Savings products that protect your assets, as you lend your money to a pool and earn interest when others borrow from it. Several products are also offered for large investors, such as Wealth Management.

Closing Thoughts

This session of the Learn 101 livestream effectively highlights strategies to help you navigate crypto market dips successfully. Identifying market trends and adopting the right trading strategies are essential for thriving during a dip. Bybit’s tools support crypto traders as they stabilize and expand their portfolios during these times.

As part of the livestream, Bybit is holdingan exclusive event that offers you a chance to participate in our pop quiz and snag 100% APR Boosters. The event period is through Aug 5, 2024, 11:59PM UTC.

Stay tuned for more discussions on the dynamic world of cryptocurrencies!

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