Avoid Buying at Round Numbers

This topic may get a bit technical, but it's crucial for grasping market dynamics. Take your time to understand it fully.

Many traders use "Limit" orders to buy or sell cryptocurrencies. A Limit order lets you automatically execute a trade at a predetermined price. For instance, if you want to sell 1 $BTC at $68,500, you place a Limit sell order at that price, and it executes once the market hits that level.

However, it's wise to avoid setting Limit orders at round numbers like $70,000, $75,000, or even $75,500. These levels are psychological milestones where numerous traders set their orders, resulting in heavy competition and a higher likelihood of your order getting lost in the crowd. This congestion means a substantial amount of capital is needed to fulfill those orders.

For example, if there are 1,000 $BTC for sale at $70,000, it requires 1,000 BTC to be bought to clear those orders. The chances of finding such a volume at that price are slim. Instead, by placing your order at $69,999, you bypass the congestion, increasing the chances of your order being filled.

This strategy is applicable to all cryptocurrencies and any round numbers. If you have any questions, feel free to ask in the comments.

These are my personal views. Thank you for reading. If you found this post helpful, please like, comment, share, and subscribe. Your support through likes and tips helps me continue sharing insights about the crypto market. Thank you to those who contribute.

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