why you need to see trade volume of exchange before transfer your bitcoin to that particular exchange?

why you need to see trade volume of exchange before transfer your bitcoin to that particular exchange?

By Kavi | Kavya | 30 Apr 2020


trade
 
Hey! welcome to my blog.
bitcoin is currently trading at $8700.00 and it seems many exchanges has got high volume in last 24 hrs because bitcoin is suppose to go under halving event in next 12 days . the bitcoin upward rally also grabbing attention to big giant institutions to jump in market to take quick trade profit but few things must be noted before choosing the exchange for trading :

1.  In the crypto market , we hardly see long time investors who buy bitcoin and keep it for years for 10x profit as we know crypto currency trading is subject to high risk where we don't know when the price went to top to bottom but  short term trading is recommendable where the traders choose right opportunity when market seems bullish or predicted about something positive will happen during halving . so at this time, traders must go through all the news and articles which are latest and trending about the exchange . for example , recently coinbase and kraken went outage for hours and this hour was most crucial to double your profit in trading where many traders instead profit went in loss .why i am telling all because it happens always when there are big upward price rally happens in crypto market then most trustworthy exchange either went slowdown or outage. 

bitcoin

 

2. During bullish in the market , don't simply go for arbitrage because you don't know if the particular exchange bitcoin wallet withdrawal is enabled or disabled. for example: if Mr B has 10 bitcoin and he saw the price of selling bitcoin is more higher than his current exchange so he decided to transfer his bitcoin to other exchange where he can get better selling price but unfortunately after he sold bitcoin then he found those respected coins he can not withdraw at that time period and withdrawal was disabled which resulted market crash after an hour and he lost his coin value . 

3.some of the exchange very smart during bullish market , they put wrong trading volume so traders will be mislead and they can get high transaction fees during withdrawal.

4. Never ever trust Coinmarket or Coingecko for observing the volume because these figures are manipulated during bullish market to get attention .so rather you believe these website ,simply go to following exchange where you want to sell or buy bitcoin and if you think these values are in your favour then you choose .

5. Do not simply follow someone for trading because you are the owner of your coins and you have right to research before trading. 

 

 

Resources:

https://www.coindesk.com/coinbase-suffers-temporary-outage-as-bitcoin-soars-to-8900

https://www.coingecko.com/en/coins/bitcoin#markets

https://www.newsbtc.com/2017/12/14/blockchain-change-online-trade/

https://bitcoinexchangeguide.com/bitcoin-trading-volume-review-website-dedicated-to-fake-crypto-exchange-activity-by-bitwise/

 

How do you rate this article?


14

0

Kavi
Kavi

Chief mentor of 'skill2up.in' and blogging is my passion.


Kavya
Kavya

Hello everyone i am kavya and i love to travel and writing essay, reports and blog.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.