tradingtechnique

This is a big day.
Up to now, we’ve been learning concepts, numbers, and market behavior.
Today, we finally connect learning to action.
Welcome to Day 17 of the 90-Day Crypto Learning Challenge 🚀
Let me walk you through how to place a spot trade on Binance — slowly and safely.
No rush. No pressure.
Step 1: Go to the Spot Market
First things first:
Log in to your Binance account
At the top menu, click Trade

Choose Spot
This will open the spot trading screen.

What you see here:
A price chart
An order book (buyers & sellers)
An order panel (where trades are placed)
📌 Don’t get overwhelmed — today, we only focus on the basics.
Step 2: Choose a Trading Pair
On the right side, you’ll see a long list of trading pairs.
Use the search bar to find what you want, for example:
BTC/USDT
ETH/USDT
Here’s what a pair means (very important):
First coin = what you’re buying or selling
Second coin = what you’re paying with
Example:
BTC/USDT → you buy or sell Bitcoin using USDT
📌 You always trade one asset against another.
Step 3: Understand the Order Panel (Where Trades Happen)
Below the chart, you’ll see the order panel.
Make sure:
Spot is selected (not futures)
This is where you choose how you want to trade.
Step 4: Order Types (Keep It Simple)

✅ Market Order (Best for Beginners)
This order buys or sells immediately at the current price.
How to use it:
Select Market
Enter the amount you want to buy or sell
(or use the percentage slider)
Click Buy or Sell
📌 Simple, fast, no waiting.
🟡 Limit Order (When You Want a Specific Price)
This lets you choose your own price.
How it works:
Select Limit
Enter:
Your price
The amount
Click Buy or Sell
Your order will wait until:
Price reaches your level
Or you cancel it
📌 This teaches patience and planning.
⚠️ Stop-Limit Order (Just Know It Exists for Now)
This is used for:
Stop losses
Taking profit automatically
📌 We’ll cover this in detail later in the challenge.
For now, understanding is enough.
Step 5: Monitor Your Trade
After placing an order:
Market orders → filled instantly
You’ll see them in Order History
Balance updates in your Spot Wallet
Limit orders → stay open
You can track them in Open Orders
Cancel anytime if needed

📌 Always know where your order is.
The Big Takeaway (Very Important)
Spot trading is where beginners should start.
Simple orders. Real ownership. Lower risk.
You don’t need speed.
You don’t need big size.
You need understanding.
Let’s Continue the Challenge Together
If you reached this day — you’re doing great.
👉 Save this post before placing your first spot trade
👉 Comment “DAY 17” if you’re still learning with me 🚀
Slow steps today = fewer mistakes tomorrow.
#Spot #tradingtechnique #FirstTrade

Open Interest (OI) is a critical metric for understanding short-term price movements in crypto markets because it directly reflects the amount of active capital, leverage, and conviction held by traders in derivatives. It provides a clearer picture of market sentiment and potential volatility than volume alone.
Several ways OI impacts short-term prices:
### 1. Indicator of Capital Flow and Market Sentiment
Open Interest reveals whether new money is entering or exiting the market, which helps confirm the strength of a price trend.
Confirming a Trend
A common pattern observed by traders is when price, funding rates, and Open Interest all rise together. This indicates that new capital is entering the market to open long positions, suggesting bullish conviction and supporting the upward price movement.
Signaling Caution
Conversely, a significant drop in Open Interest can signal a deleveraging event or market caution. For example, one analysis from QCP Capital noted that post-expiry, a 50% drop in open interest reflected market caution as traders closed positions.
Gauging Capital Return
After a major sell-off or liquidation event, a rebound in Open Interest can signal that "capital is coming back" into the market, as traders regain confidence and open new positions. An analysis of Hyperliquid's OI showed it climbing from $6B to $7.5B, indicating a return of capital after a prior liquidation.
### 2. Fuel for Volatility and Liquidations
High Open Interest signifies a large number of leveraged positions. This build-up of leverage can act as fuel for sharp, short-term price movements.
Amplifying Moves
When the price moves against a large number of leveraged positions (e.g., price drops against many longs), it can trigger a cascade of liquidations. These forced market sells push the price down further, leading to more liquidations in a chain reaction. The same happens in reverse for short squeezes. One analyst directly stated, "A sudden increase in open interest = may skyrocket or plummet."
Quantifying Impact
In the last 24 hours alone, the market saw $115 million in liquidations, with both long and short positions being forcefully closed. This demonstrates the real-time impact of price movements on the capital represented by Open Interest.
### 3. Differentiating Institutional and Retail Behavior
By analyzing OI across different exchanges, we can infer the actions of different market participants, which can have divergent effects on price.
Institutional Deleveraging
In a recent trend, data showed that CME BTC contract open interest (favored by U.S. institutions) decreased from $12.5B to $10.0B, while Binance's OI remained stable. This was interpreted as U.S. institutions deleveraging and closing positions for year-end, a specific behavior that could temporarily reduce buying pressure.
Shifting Market Dominance
The same data highlighted that Binance has now become the largest venue for BTC futures by open interest, surpassing CME. This shift in where capital is held can influence which platform's activity has a greater impact on short-term price discovery.
The CME-specific chart helps track the activity of more institutional players.
### 4. Interplay with Funding Rates
In perpetual futures, which make up a huge portion of Open Interest, the funding rate mechanism creates direct price pressure.
Cost of Holding Positions
The funding rate is a fee paid between long and short positions to keep the perpetual contract price close to the spot price. When OI is heavily skewed one way (e.g., too many longs), the funding rate for longs can become very high.
Forcing Position Closures
An analysis by QCP Capital noted perpetual funding rates on Deribit rising above 30%, indicating a strong bullish bias. Extremely high funding rates make it expensive to hold long positions, which can pressure traders to close them, thereby creating selling pressure and potentially capping a rally or causing a short-term price correction.
In essence, Open Interest is not just a number; it represents the stored potential energy in the market. A high OI suggests the market is heavily leveraged and primed for a volatile move, while the direction of its change provides powerful clues about the conviction and capital flow behind a price trend.
Content is for investor reference only and does not constitute any investment advice.


#oi #BTC☀️ #tradingtechnique #BOME🔥🔥🔥 #openinterest