So, when we chat about trading, a lot of folks say a trader might be skilled but still end up losing cash because they’re dealing with super volatile coins. I’ve been there myself, trading those wild coins, and yeah, it’s definitely a thing. But I’m curious to hear what others think. Do you guys really steer clear of these volatile coins, or do you mix it up and trade both kinds?
And hey, a heads-up for newbies: those highly volatile coins can be pretty risky.
I actually trading both some are utility coin with good fdv and some are memecoin with very low quality. I dont know maybr I used to degen on it since my forte is scalping with good low cap tokens and some memecoin since I able to win some good money there from quite some time. But honestly not totally for beginners cause the risk is too much.
I don't trade with low-volatility coins. I look for high-volatility coins rather than low-volatility coins because I make more profit from high-volatility coins than low-volatility coins.
For me, low volatility is considered consolidation, and I can't find a better entry because I trade on trending, not in consolidation, and I manage the risk of trading them and always keep my losses tight.
Maybe on forex they have low volatility on most of the currency pairs, but the problem is their leverage is high; it is not the same as crypto, where we can use low leverage.
Usually my forex account has 3 options when registering on some brokers: 500:1 to 1000:1. I choose the micro account that uses 1000:1 without proper risk management; even with a low volatile currency pair, you can lose a huge amount without the risk management.
That's why even if you trade anywhere in forex or crypto, you should have proper risk management to protect your capital.
I trade more on crypto only in trending markets. If I see consolidation, I don't trade because it's not worth trading; I can't do trailing stops than in the trending markets where you can able to make more than 1:2 RR, I sometimes hit 1:4 RR and 1:5-6 RR rarely.
Usually, I trade coins that recently have spike on trading volume because theres more price action on that tokens which is very profitable on short term trading.
Normally, price on volatile tokens like that have upper and lower limits which traders keep using as indicators for buy and sell.
A one full cycle of buy and sell is enough for me to exit. Most of the time I trade AI projects now since they are hot when they have trading volume spike.
You should have an experience to share then.
Unless you have a bigger leverage, and you're good at scalping through the market every now and then to accumulate profit in bits, with a good level of discipline, trading on high volatility coins are not advised. Even with the proper use of risk-management features, a single retracement can be disastrous. What's the point of taking the risk? It's better to always lookout for the market liquidity in real time, that way, you can suit yourself in a category that fits your pattern of trading. It's actually profitable to scalp, but not for newbies!
I am avoiding the highly volatile coins. I have sticked to the reputable and old ones from the top rankings. And mainly, with Bitcoin and Ethereum. The profits that I've made from the last bull run mainly came from Bitcoin. So, I did trade a lot with that profit and simply held for a long time until I sold a good amount for myself. The newbies need to understand why many of us are going with the slow type of making money in the market. Because what they see about those large sums of profits from influencers are simply for the clout and not for actual trades.
It depends on each individual and how they try to understand trading. Sometimes we look at momentum when entering a trade to take positions in certain coins. Generally, I personally look at the conditions of coins that are more fundamental, like Bitcoin, ETH, or BNB. I've learned from my previous mistakes. When I first started trading, I was involved in many volatile coins, but that process didn't bring me success, so I decided to only trade coins that I considered fundamental. For now, I'm simply avoiding highly volatile coins because it's difficult to make predictions when trading, so it's better to focus on trading coins that are more fundamental.
I used to be a day trader in the past and also chose some random altcoins that are highly volatile but it was more of a gamble for me where I made money and also lost so on the whole I didn't make much for the efforts I gave for the trading and then slowly turned into bitcoin/fiat day trader and now almost stopped doing it for personal reasons.
Actually for me high or low volatility is the same, it all depends on when we start the buy entry. On the other hand, I have to look at the movement of Bitcoin, because some of the altcoins have a chart pattern similar to Bitcoin.
I always make entries on Bitcoin or Altcoins When the trend is really confirmed bullish, so far I have always used technicals to make entries. When the target is reached I won't hold it, because I think I can repeat it until I'm completely tired of looking at the chart.
I trade both depending on the opportunity I saw in the market, or the opportunity available in that particular coin I wanted to trade. I wouldn't deny that it is more easier and more safer to trade a less volatile asset like Bitcoin or Eth, if you compare it to pepe/usdt or other meme coin, but the most important thing when trading a higher volatile asset is that you should stay away from using high leverage, and making use of proper risk management strategies, to curb your potential losses, if it doesn't goes as planned, that's why I believe that knowledge is very important when trading a higher volatile asset like meme coin.
I don't trade shitcoins with zero history. I trade well known, fairly good alts like Doge, XMR, Litecoin and obviously bitcoin. Trading XMR is pretty hard nowadays since no centralized exchange accepts it anymore but it is possible with the no-kyc exchanges where you send coins and receive coins to your address. It is not very fast but I don't do a thousand trades per second like most gamblers anyway. Most of the time I don't even bother. Maybe once in a month when something extraordinary happens so I don't really need centralized exchanges.
Newbies can trade high volatile coins and blow their account but an experience trader can still make profit from the same coin that a newbie lost their money on, trading success depends on the traders skill, the coins they are trading can also be a problem but traders that are professional can manage any coins as long as they like the coin, just like you said that you have tried volatile coins, you can tell that you can make quick profit as soon as the price go in your favour but if it doesn't, that also will cause a big lose for you. High volatile coins give quick lose or quick profit.
In derivatives trading, the effects of volatility can actually be adjusted. We can see that in the futures market, Bitcoin leverage can be limited to 200x, while more volatile assets can only have it up to 50x, and so on. This shows that trading platforms can eliminate these volatility differences, depending solely on the trader's preferences and style.
I think it requires some extra skill to be able to trade volatile coins successfully. You can be a trader, who has a strategy, but you require more than strategy to be good with volatility. A highly volatile coin will affect your emotions faster, if you are monitoring the charts, it will be worse, because it will be then a constant battle of thoughts to either extend stop loss, close a trade before take profit or stop loss, enter a trade or wait for entry etc. All these are some few of the many emotional alarms you will face.
If you are going to trade volatile coins, it is good to have a good account size so that a sudden pull back will not liquidate you, that is a major challenge for people with enough skills to trade a volatile coin, they have a strong emotion too, but lack the good enough money to trade with.
Yes this thing is actually based on the coin volatility and also liquidity and market cap of such coin. In fact there are exchanges that can go for as a high as 500x for bitcoin and around 200x for Ethereum and Solana. It depends on the platform. Many think this is done to protect traders from losing but it is also there to protect the exchange themselves because the market is two way thing it either favours the trader or the exchange and such due to volatility of such coins you see having very low leverage which is increased as the coin grows in term of volatility rate.
Personally I trade bitcoin the most but usually trade other top Altcoins because most of them actually do follow bitcoin trend, in fact one of my confluence before trading Altcoin is that it must be in same trend and similar market structure with bitcoin. Solana has been that coin I have caught with such trend the most
I have been trading not so regularly this period and I have equally had thoughts of going for along indefinite break. Not having it in profit recently with some of the top 10 coins I have been testing with what I can afford to lose. Still not compromising with my bitcoin investment one side.
It is true about highly volatile coins and newbies traders has to stay off them. The profit can be lofty and so is the loss in a price swing. I have a friend who blew his account dew to trading highly volatile coin, he got greedy using high leverage and liquidated $1,700 in a flash.
I am not a professional trader and not a regular trader. I have participated in trading platforms for a very short time. However, I started trading with coins like Bitcoin, Ethereum, BNB in a learning mode. I did not start trading with volatile and highly volatile coins because I think trading with highly volatile coins means incurring losses. I have traded with less volatile and reliable coins, so I think I have been able to keep myself at ease to some extent.
Because of the assured stability of BTC and ETH I tend to focus more on trading, although the profits are usually minimal due to the high price and lack of huge capital but they are more stable compared to other small altcoins in the market and even as the price moves both directions a lot, they are still manageable in terms of risk. Coins with high volatility can surely print quick profits and in the same way they can magically wipe out your account before you know it, so I mostly use small amounts to trade them when the market condition is on a good trend.
From the choices, there's no high trading volume.
Because most of the time here, the top pairs in most exchanges are also the ones that top the total market cap in the entire cryptocurrency market.
For me, that's the first thing I always check: the trading volume. Because I can guarantee the market is active on that like this day or this week.