“The Ultimate Guide to Crypto Trading: TVL to make profits”
While the cryptocurrency world continues to evolve, traders and investors are constantly working on new strategies to maximize their gains while minimizing their losses. In this article, we will immerse ourselves in two crucial concepts which have become essential tools for the successful crypto trade:
TVL (total locked value) and
profile benefits .
** What is TVL?
Total locked value (TVL) refers to the total quantity of cryptocurrency which has bones locked in an intelligent or in exchange contract. He repeats the collective value of all the locked workers, including tokens, cryptocurrencies and even NFT (non-buttons). The higher the TVL, the more the liquidity is more advisable for trading.
** Why is TVL important?
A high TVL indicates a flourishing community of traders who have pooled their resources to invest in various assets. This increased liquidity leads to a better discovery of prices, a reduction in volatility and an improvement in market efficiency. Moreoover, a large TVL can also attract institutional investors, which can increase the demand for specific cryptocurrencies.
** How does TVL impact the prices of cryptography?
When television is high, it tends to have a positive impact on the prices of cryptography. Indeed as prices increase, more buyers enter the market, amplifying the upward trend. Conversely, if TVL falls, this can lead to a decrease in liquidity, which can lead to a drop in prices.
** What is price action?
Price action refers to the dynamic behavior of a price graph of cryptocurrencies, including trends, ranges and rersales. It includes various aspects, such as:
* Trends : long -term movements that indicate the global market management.
Games : consecutive highs and stockings that suggest a potential bull or bear race.
* Inverse : Sudden changes in price behavior that can point out a change in dynamics.
** Why is price action essential?
Price Action offers precious information on the feeling of the market, potential trends and entry points. By analyzing price graphics, traders can identify:
* Support and resistance levels : Key areas where prices tend to bounce or move away.
* Trendy reversals : Signaling changes in market management.
GAPS : unexplained price movements that may indicate a new trend or inversion.
Profitity: the art of outing strategies
A takeover is an output strategy used by traders to lock the profits from their investments. It is a question of setting a predetermined price level and selling at this stage, whatever the management of the market.
Why do traders use benefits?
Traders use profits for several reasons:
* Risk management : Limit potential losses and protect their capital.
* Liquidity management : to leave the positions quickly and minimize the prints.
* Coherence : Maintain a coherent negotiation plan and avoid emotional decisions.
How to define effective profits
To define effective benefits, traders should:
* Use stop-loss commands: Define a target price level to sell to a margin of 1 to 2% above the current price.
* Choose optimal output levels : Select prices that balance the risk and provide enough fire.
* Monitor the market conditions : Adjust the profit levels according to the evolution of the feeling of the market.
In conclusion, the total locked value (TVL) is an essential metric for crypto traders in order to understand the liquidity and potential of their market. Price action is the dynamic behavior of a table in cryptocurrency prices, providing valuable information on market trends and inversions. By combining the thesis, two concepts with effective profit strategies, traders can optimize their commercial performance, reduce risks and maximize profits.
