STRUCTURE OF THE DIGITAL MARKET

Hello to everyone in this wonderful community today and in this great platform at large. Today I greet you all in good spirit and I want to believe that we all are doing just great today and if so we give God the praise for the sustenance of life and good health.

I do hope everyone is doing just perfectly well and there is no cause for alarm this day. It is a pleasure to be in the midst of all of you present in this community today and I must say that this kind gesture is truly appreciated.

Today I will have to continue the discussion regarding the said topic TRADING STRATEGY TO CONSIDER BEFORE EXECUTING A TRADE. I began this teaching few days ago and as we have seen the first strategy which is the order book where we discussed intensively regarding it and how it should be considered before you make your trades in the cryptocurrency market as though it is the frame body of the market.

Today we will be talking about another interesting strategy that is to be considered before executing a trade in the cryptocurrency market trading and this strategy is termed as the LIQUIDITY IN CRYPTOCURRENCY MARKET TRADING. This is another important strategy to look upon before the trade is being carried out. As we begin I urge you all to sit tight and relax as I begin the discussion for today. I wish you a happy reading!

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Just as I have mentioned in my previous discussion regarding the cryptocurrency market trading, I said it is quite tactical and almost impossible to determine the movement regarding price value in the market and this has been a major concern to traders especially futures traders.

The futures trading requires a lot of skill and not just skill but the ability to forecast the next trend movement of the said asset that you wish to trade in the cryptocurrency market. That is why as a trader you need to know the relevant strategies that you are expected to carry out or make use of before you execute your trade in the market.

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The next thing to consider after the ORDER BOOK is the LIQUIDITY that is readily available in the market. You need to consider the available liquidity that of the said asset you wish to trade in the cryptocurrency market to be sure that traders are actually active in the market and are either purchasing or selling off the said assets.

THE LIQUIDITY POOL

If you have been following my teachings, I have given the definition of the term liquidity but for more emphasis I will have to go about that again. We all know that liquidity is shows that the number of traders purchasing and supplying the said asset is high and as such we get to see an almost stable price regarding an asset due to the constant activity regarding purchase and supply of an asset.

A good trader is expected to consider the liquidity pool before executing his or her trade entry. This is to help the trader to know the activities regarding the said asset he wishes to trade in the market is currently doing. He gets to see if there is much liquidity regarding the asset before the execution of the trade.

Liquidity is part and parcel of the market structure and as such it is a characteristics of the market. Haven considered the order book, the liquidity is next in line that makes up the cryptocurrency market trading. So one has to consider the liquidity pool regarding a particular asset. You need to ask yourself few questions before launching your trade regarding the cryptocurrency.

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It is important to know the liquidity pool of a digital asset before you execute your trade. Make sure that the digital asset you wish to trade is one which has higher liquidity that is to say more traders are in the market trading the digital currency for the purpose of creating a higher liquidity so that the price will not be altered. So liquidity as part of the characteristics of the market structure, it is important to be put in check.

The reason why many of us fomo in the cryptocurrency market is due to the fact that we do not consider basic trading strategy. The main reason why you should pay attention to basic strategy is so that you do not trade an asset that has a lesser liquidity pool.

In other words, there are certain digital currency that do not have much activities regarding buying and selling going on and as such when you execute a trade via such asset you tend to either lose your funds as you get to see less activities resulting to low liquidity regarding the asset.

This us why you need to pay attention on the digital asset you wish to trade because without that you might end up trading a particular asset that has lesser liquidity pool and when that happens you might end up being trapped in the trade since you get to see little or no traders interested in purchasing such asset.

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CONCLUSION

I will conclude by saying it is quite cumbersome and tasking to actually execute a perfect trade without complications as though there are strong hands controlling the price of certain assets in the cryptocurrency market but paying attention and following the basic strategy will help you to a fault in minimizing losses and maximizing profits.

This is why you need to pay attention to the market structure and all the characteristics that is connected to it. The liquidity pool is quite one of the major characteristics you need to consider before executing your trade. It is paramount to see the activities regarding the asset you wish to trade before executing your trade entry. This is to help you minimize losses in the market and also it gives you an idea regarding the digital asset before making your trade entry.

Thank you all for having me today. I will be seeing you around when next I am here but for now I wish you a good day ahead!