Trading in the cryptocurrency market can be an exhilarating but challenging endeavor. As an amateur trader who has spent more than a decade navigating the world of trading on Binance, I have gained valuable insights and learned important lessons along the way. In this article, I will share a summary of key points that have shaped my trading journey and can potentially benefit other traders.

Emotional Trading: A Warning Sign

One of the most crucial lessons I've learned is to avoid emotional trading. Emotions like fear, greed, and impatience can cloud judgment and lead to impulsive decisions. It is essential to recognize and control these emotions. If you find yourself trading based on emotions, it's imperative to step back and take a break.

Assessing Probability:

Successful trading involves identifying high-probability trade setups. Before entering a trade, it is crucial to thoroughly analyze the market and ensure that the trading direction is based on a solid rationale. If there is uncertainty or doubt, it is wise to refrain from trading until a more confident assessment can be made.

Clear Expectations:

Defining clear trading objectives is vital. Are you looking to engage in scalp trading or swing trading? Each approach requires different strategies and time horizons. If you are uncertain about your objectives or lack clarity, it is advisable to take a step back and reassess your goals.

Setting Stop-Loss :

Risk management is an integral part of trading. Setting stop-loss orders helps protect against significant losses by automatically triggering an exit from a trade when a predetermined price level is reached. Failing to implement this crucial risk management tool puts your capital at unnecessary risk. Make sure you are ready and willing to set stop-loss orders before engaging in trading.

Accepting Losses:

Losses are an inherent part of trading. It is essential to acknowledge and accept the possibility of losses. If you find it difficult to handle losses or become emotionally distressed when experiencing them, it might be a sign that trading is not suitable for you. Understanding and being mentally prepared to accept losses is a fundamental aspect of successful trading.

Understanding the Nature of Trading:

Trading is not a game of chance or luck; it is a skill that requires knowledge, discipline, and dedication. Engaging in trading without a thorough understanding of the market or treating it as a form of gambling can lead to detrimental outcomes. It is essential to educate oneself, continuously learn, and approach trading with a strategic mindset.

Financial Impact:

Trading should never jeopardize one's financial well-being. Before entering the world of trading, it is crucial to assess the impact potential losses could have on your life. If the loss of trading capital would significantly affect your financial stability, it is wise to reconsider your involvement in trading or allocate only a portion of your funds that you can afford to lose.

Conclusion:

Drawing from my personal experiences as an amateur trader spanning more than 10 years, I have shared important reflections that can help aspiring traders navigate the complexities of the cryptocurrency market. By avoiding emotional trading, assessing probabilities, setting clear objectives, implementing risk management tools, accepting losses, understanding the nature of trading, and considering the financial impact, traders can enhance their chances of success and achieve long-term profitability. Remember, trading is a continuous learning journey, and adapting to the ever-changing market dynamics is crucial for sustainable growth.

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Binance screenshot of futures account stable profit in the last 90 days

Financial markets have always been an area full of challenges and opportunities, and in recent years, artificial intelligence (AI) has begun to revolutionize the industry. As one of the important areas, AI trading has become a key tool for financial institutions and traders. This article will delve into the core concepts, key components, high-frequency trading, regulation and compliance of AI trading, as well as its advantages and challenges.

Definition of AI Trading

AI trading is a method of using artificial intelligence technology to execute financial market trading strategies. It no longer relies on the subjective decision-making of human traders, but uses computer algorithms and big data analysis to automate and improve the efficiency of trading decisions. AI trading can be applied in various financial markets, including stock markets, foreign exchange markets, futures markets, and cryptocurrency markets.

Core components of AI trading

Data Analysis and Collection

The first step in AI trading is data analysis and collection. Vast amounts of market data, including historical prices, trading volumes, news events, social media sentiment analysis, etc., are collected and used for decision making. The data comes not only from market data providers, but also from news organizations and social media platforms.

Trading straregy

AI trading systems use different trading strategies to make trading decisions. These strategies can be based on different methods such as technical analysis, fundamental analysis, machine learning or deep learning models. For example, technical analysis relies on chart patterns and technical indicators, while machine learning models can automatically identify market patterns and trends.

Execute the transaction

Once a trading signal is determined, the AI trading system automatically executes the trade. This includes order placement, trade confirmation and settlement. The speed and accuracy with which trades are executed are critical to the success of AI trading.

Risk Management

AI trading systems often include risk management strategies to limit potential losses. This may include setting stop-loss orders, position sizing, diversification, etc. Risk management plays a key role in keeping traders' funds safe.

Monitoring and Optimization

AI trading systems need to constantly monitor their performance and optimize them. This may include making adjustments to trading strategy parameters, retraining models to adapt to new market conditions, etc. Flexibility and adaptability are important to respond to changing markets.

High Frequency Trading and Special Considerations

High-frequency trading is a specialized area of AI trading that involves executing large numbers of trades in extremely short periods of time to profit from tiny price fluctuations. In order to successfully conduct high-frequency trading, highly optimized algorithms and low-latency trading infrastructure are required. This is a highly technical and competitive field that requires traders to constantly innovate and improve.

Regulation and Compliance

The financial market strictly regulates AI transactions to ensure market fairness and transparency. Traders must comply with relevant laws and regulations, including rules regarding algorithmic trading and high-frequency trading. Regulators overseeing AI trading are also developing new regulations to adapt to this rapidly evolving field.

Advantages and Challenges of AI Trading

Advantage:

Calm and disciplined decision-making: AI trading is not disturbed by emotional and psychological factors and is able to execute strategies with calmness and discipline. Automation: AI trading can work around the clock without human intervention. Data-driven: Relying on big data analysis and machine learning to make decisions using rich market information.

Challenge:

Data quality issues: Relying on data, it is necessary to ensure the accuracy and reliability of the data. Overfitting models: Over-optimizing a model can result in performing well on historical data but performing poorly in the future. Market uncertainty: Financial markets are affected by various factors, including political events, natural disasters and global economic fluctuations, which increase the risk of trading.

In conclusion

AI trading has changed the face of financial markets, providing traders with more tools and opportunities. However, it also brings new challenges and risks. For those who decide to enter this field, caution, learning and regulatory compliance are keys to success. And ATPBot is the leader in AI trading. With the rich experience and professionalism of their team, they have stood out in the field of AI automatic trading and have a huge customer base. AI trading will continue to evolve and become an integral part of the financial market, while also requiring constant adaptation and evolution to respond to changing market conditions.

In the ever-evolving landscape of financial markets, technology continues to reshape the way traders approach investments. Among the most significant innovations is the emergence of AI-powered trading signals, which have garnered immense attention from both novice and seasoned traders alike. These sophisticated algorithms analyze vast amounts of market data and historical trends, aiming to provide actionable insights and potentially boost trading performance.

The Power of AI-Powered Trading Signals:

AI-powered trading signals promise several enticing benefits. For one, they offer real-time analysis of market data, enabling traders to stay ahead of the game and make informed decisions promptly. These signals can identify potential entry and exit points, detect market trends, and even anticipate price movements. This level of precision and speed is a game-changer for traders seeking a competitive edge in a rapidly moving market.

Additionally, AI-powered signals can mitigate human bias and emotions from trading decisions. Fear and greed often influence traditional traders, leading to impulsive actions that may harm their portfolios. However, AI algorithms operate based on predefined rules and data-driven analysis, removing emotional biases and promoting disciplined trading.

Furthermore, these signals cater to both experienced traders and newcomers with limited market knowledge. By providing concise and easy-to-understand insights, AI-powered signals democratize trading, allowing a broader audience to participate and potentially succeed in the financial markets.

The Risks and Challenges:

As with any technological advancement, AI-powered trading signals also come with potential risks and challenges. The foremost concern is the reliance on historical data and patterns. While AI can analyze vast amounts of data, past performance does not guarantee future results. Market conditions can change rapidly, and unforeseen events can disrupt even the most sophisticated algorithms.

Moreover, the widespread adoption of AI-powered signals may lead to a "herd mentality" among traders. If a significant number of market participants follow the same signals, it can create artificial market movements and increase volatility, potentially leading to unexpected consequences.

The Role of ATPBot:

In this dynamic landscape of AI-powered trading signals, ATPBot stands out as a reliable and proven solution. ATPBot offers a user-friendly platform with pre-set parameters and extensive historical backtesting, ensuring traders gain access to verified strategies.

The platform's AI algorithm constantly optimizes trading strategies, effectively managing risk while maximizing profit potential. ATPBot's well-established risk management approach helps traders evaluate potential risks, enabling them to align strategies with their risk tolerance.

Moreover, ATPBot's simplicity and ease of use make it an attractive choice for both seasoned traders and newcomers. By eliminating the need for manual parameter configuration and extensive market analysis, ATPBot streamlines the trading process, allowing investors to focus on other aspects of their investment journey.

Conclusion:

AI-powered trading signals have undoubtedly revolutionized the financial trading landscape, offering unparalleled insights and efficiency. However, it is crucial for traders to exercise caution and understand the inherent risks associated with AI-driven strategies.

For traders seeking a reliable AI-powered trading solution, ATPBot emerges as a commendable choice. With its historical validation, robust risk management, and user-friendly interface, ATPBot empowers traders to explore the world of automated trading confidently.

In a rapidly evolving market, embracing the right AI-powered tool can make all the difference in achieving trading success. Consider ATPBot as your strategic partner on the journey to unlocking the full potential of AI in your trading endeavors.

As Bitcoin (BTC) becomes increasingly popular among investors around the world, MicroStrategy co-founder and executive chairman Michael Saylor has pointed out the problems with self-custody and expressed his belief that there will come a time when all the major banks will offer Bitcoin custody services.

Indeed, Saylor explained that if Bitcoin was to become the solution for everyone on the planet, then it was inevitable that banks, corporations, governments, and non-profits all need Bitcoin, as he told Kitco News’ Michelle Makori in an interview published on May 22.

Problem of self-custody

According to him, “the City of New York is not going to allow the mayor to walk around with Bitcoin in personal custody, and it’s not really practical for the Defense Department of the United States of America to let one general have all the Bitcoin.”

With this in mind, Saylor believes that:

“Large institutions, churches, corporations, and the like, they’re going to need an infrastructure of custodians and banks, and so I do think there will be a time when all the big banks will custody Bitcoin.”

Furthermore, he argued that some groups of people simply could not be reasonably expected to self-custody Bitcoin, such as children who inherited it or elderly people with dementia, in which case an institution like a trust company would have to step in that would manage their Bitcoin possessions for them.

Bitcoin in traditional institutions

On top of that, Saylor highlighted that “if you believe nation-states will continue to exist, then you’re going to have Bitcoin held by institutional sources, they’re going to have to have a bank to hold it for them.” Therefore:

“I think that Bitcoin is inevitably going to permeate all of the traditional institutions in the world in different ways for different reasons – economic reasons, physical reasons, political reasons.”

As a reminder, enterprise business intelligence (BI) software vendor MicroStrategy has so far purchased over 140,000 BTC, which some, including Hal Press, the founder and CEO of the cryptocurrency-focused investment fund North Rock Digital, have criticized as a “comically stupid” strategy.

Meanwhile, the flagship decentralized finance (DeFi) asset was at press time changing hands at the price of $27,323, up 1.72% on the day and gaining 0.41% across the previous week, as it looks to reverse the losses of 1.70% accumulated over the past month, as per data retrieved by Finbold on May 23.

The king coin’s price has long-term potential of reaching its peak again. But it depends on a number of factors.

BTC may have approached the beginning of a bullish run.

The coin circulation rests in an extremely low region.

Bitcoin’s [BTC] failure to recover from its recent decline could be something that long-term investors may not necessarily need to worry about, based on signals from the Pi Cycle Top indicator. 

Historically, the indicator has been instrumental in picking out market cycles. Furthermore, the metric uses the 111-day Moving Average (MA) and a multiple of the 350-day MA with respect to the Bitcoin Price.

Offering chances that lead to the pinnacle

According to LookIntoBitcoin,  the 111-day MA was still lower than the 350-day MA. This implies that the current market was far from being overheated since Bitcoin peaks only happened when the former surpassed the latter.

Therefore, it may seem advantageous to accumulate some BTC at the current state. Despite the hope that the Pi Cycle Top Indicator offers, the Bitcoin fear and greed index decreased to 48. 

The index considers volatility, momentum, and market sentiment in determining participant reaction to sudden price action.

 In the first quarter, this index pointed to the greed region. But now that it was neutral and closer to the fear area, it means that investors were not presently excited about the price prospect.

At press time, BTC’s price was $27,069, a mild 3.83% decrease in the last 30 days. In addressing network profitability, the adjusted Spent Output Profit Ratio (aSOPR) left the negative region.

The aSOPR reflects the shift in market sentiment of shrimps and whales’ lifespan while monitoring profitability. With its value above 1.0, the aSOPR showed that there has been a recovery around the 90-day Exponential Moving Average (EMA).

Therefore, this means that a wide cross-section of BTC holders leaned toward profitability.

Circulation down

Although the aSOPR and Pi Cycle Top indicators displayed bullish potential, BTC might require more input from investors than is currently experienced. For instance, the 365-day circulation had dropped to 5.61 million.

Circulation shows the number of unique coins engaged in transactions within a specific period. As of January, circulation was as high as 6.05 million. Hence, the decline means that investors were shying away from exchanging BTC between addresses.

Meanwhile, the daily active addresses have revived from the severe decrease on 7 May. As of 20 May, the metric has moved to 737,000.

This meant that there was a considerable level of crowd depositing and receiving BTC based on the market. Thus, increasing the level of interaction with the coin.

The XRP price has risen by 3.5% in the past 24 hours, with its climb to $0.463353 representing an 8% gain in the last seven days.

Its current price means it has dropped by 11% in a month but increased by 36% since the beginning of the year, with this appreciation coming as the market awaits the conclusion of Ripple's case with the SEC.

It also comes just as Ripple CEO Brad Garlinghouse has suggested in an interview that cryptocurrency firms may leave the US, which in his view currently suffers from a "confusing" regulatory regime.

This may suggest that Ripple itself could be planning to leave America in the wake of its fight with the SEC, but with the cryptocurrency firm also acquiring custody provider Metaco this week, this doesn't necessarily mean it's expecting to lose.

XRP Price Prediction as Ripple CEO Says Crypto Firms May Leave US Amid Confusing Rules – Here's the Latest

There's no doubt that XRP is one of the strongest major cryptocurrencies in the market right now, with its indicators showing good momentum.

Its 30-day moving average (yellow) continues to climb pretty steeply above its 200-day average (blue), signaling strong buying pressure that could continue for several days, if not weeks.

Similarly, its relative strength index (purple) has remained consistently above 50 since the middle of the week, and is rising again now after a brief dip.

Perhaps the most encouraging sign is that XRP's support level (green) has been consolidating around increasingly high levels over the past few days, suggesting that the altcoin's gains aren't going to be reversed anytime soon.

XRP's strength this week is the product of a couple of factors, with the first being that Judge Analisa Torres -- who presides over the Ripple-SEC case -- denied the regulator's motion to block access to important documents related to William Hinman's 2018 'Ethereum-is-not-a-security' speech.

A key metric that measures momentum in the Bitcoin price just fell to its weakest level since March.

Last week, Bitcoin’s Z-score to its 200-Day Moving Average fell under 1.0, where it has remained more or less ever since.

That means that the current Bitcoin price is only just under one standard deviation above its average daily closing price over the past 200 days.

This time last month, a few days after Bitcoin had printed its highs for the year above $31,000, Bitcoin’s Z-score to its 200DMA was 2.27.

Bitcoin’s loss of price momentum over the last few weeks comes as traders book profit in wake of this year’s impressive rally and temper their optimism about how much further Bitcoin might rally over the remainder of the year amid a continued cloud of uncertainty regarding the US crypto regulation outlook and how much, if at all, the Fed will cut interest rates in the second half of the year.

Arguably, high Bitcoin transaction fees amid a surge in block space demand as the new BRC-20 standard of crypto tokens issued directly on-chain gains in popularity has also been weighing on the price.

It has certainly acted as a deterrent for the blockchain’s more traditional usage as a digital currency ledger – active daily users and the number of new addresses interacting with the blockchain on a daily basis have both fallen off a cliff in recent weeks, though daily transactions has surged to record highs.

Is Now a Good Time to Buy?

While it by no means guarantees that the Bitcoin price doesn’t have further to fall in the short-run, a Z-score to the 200DMA of around of just under one has often been a good time to buy Bitcoin, if the cryptocurrency is deemed to be in the early of middle stages of a bull run.

Take the 2015 to 2018 bull run, for example.

The line that marks a Bitcoin price of one standard deviation above the 200DMA seemingly acted as a strong level of for multiple years.

While this wasn’t so much the case in 2019 and early 2020 as Bitcoin recovered from its 2018 bear market, it did seem to be the case in late-2020 as the Bitcoin bull market went into overdrive thanks to massive fiscal and monetary stimulus.

In the context of the current Bitcoin market and fundamental backdrop, the Z-score to the 200DMAs recent fall back to just below 1.0 could be a good medium to long-term buy signal.

That’s because macro conditions are expected to turn more favorable over the course of the remainder of the year – US interest rates appear to have peaked, regional banks remain on the rocks (creating safe-haven demand for “hard money” like Bitcoin and gold) and inflation is coming back under control (giving the Fed more room to eventually start with rate cuts).

Meanwhile, a litany of technical and on-chain indicators, as well as analysis of Bitcoin’s longer-term cycle are all flashing that the cryptocurrency has entered into the early stages of a new bull market.

Near-term bearish predictions of a retest of key long-term support in the $25,000s may well come true, with Bitcoin seeming in a short-term downwards trend channel and still below its 21 and 50-Day Moving Averages.

But many longer-term Bitcoin investors and bulls will likely be waiting on the sidelines to pounce on an opportunity to get Bitcoin at $25,000.

Bitcoin's difficulty hits an all-time high and hash rate surges as the cryptocurrency's network and mining dynamics evolve.

Quick Take

Bitcoin difficulty ticks to an all-time high, a positive adjustment of over 3%, currently at 49.55T.

The hash rate has also started to climb again, hitting 350 th/s for the first time on a 30-day moving average.

The has rate has been fairly flat for the past 30 days, but the hash rate has started to climb in the last few days.