PerplexicoPegazo
Open Trade
High-Frequency Trader
16 Days
3 Following
25 Followers
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#Liquidity101
#Liquidity101
Liquidity is key in trading and often does not receive the importance it deserves.
🔹 What is liquidity?
It is the ease with which an asset can be bought or sold in the market without significantly affecting its price. The more liquidity, the less slippage and better order execution.
🔹 How does price execution get affected?
In markets with low liquidity, a large order can move the price drastically, causing you to end up buying or selling at a worse price than expected. This is called slippage and it can eat into your profits.
🔹 How do I assess liquidity before entering?
I look at the daily trading volume of the asset.
I review the order book to see the depth: how many orders are close to the current price.
I prefer to trade in pairs with high liquidity, like BTC/USDT or ETH/USDT on CEX.
🔹 Strategies to reduce slippage:
Use limit orders instead of market orders.
Split large orders into several smaller ones.
Trade during times with higher volume.
Choose platforms with good liquidity or use DEX with large pools.
💡 Understanding liquidity helps you protect your capital and improve your results. Never underestimate this factor in your trading!
#Liquidity101
Liquidity is key in trading and often does not receive the importance it deserves.
🔹 What is liquidity?
It is the ease with which an asset can be bought or sold in the market without significantly affecting its price. The more liquidity, the less slippage and better order execution.
🔹 How does price execution get affected?
In markets with low liquidity, a large order can move the price drastically, causing you to end up buying or selling at a worse price than expected. This is called slippage and it can eat into your profits.
🔹 How do I assess liquidity before entering?
I look at the daily trading volume of the asset.
I review the order book to see the depth: how many orders are close to the current price.
I prefer to trade in pairs with high liquidity, like BTC/USDT or ETH/USDT on CEX.
🔹 Strategies to reduce slippage:
Use limit orders instead of market orders.
Split large orders into several smaller ones.
Trade during times with higher volume.
Choose platforms with good liquidity or use DEX with large pools.
💡 Understanding liquidity helps you protect your capital and improve your results. Never underestimate this factor in your trading!
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#OrderTypes101
Today I share a quick guide on the most common types of orders in trading and how to use them to maximize your profits and minimize risks.
🔹 Market Orders:
They are executed at the current market price. They are quick and ensure that the order is completed, but the price may vary if the market is volatile.
➡ Use when I want to enter or exit quickly without waiting.
🔹 Limit Orders:
You set a specific price to buy or sell. The order only executes if the market reaches that price.
➡ Ideal for buying low or selling high, but it may not execute if the market does not reach that price.
🔹 Stop-Loss:
Automatic order to sell (or buy short) when the price hits a defined level, limiting losses.
➡ Essential to protect your investment against unexpected drops.
🔹 Take-Profit:
Automatic order to close a position with profit when the price reaches a target.
➡ Perfect for securing profits without having to be on alert all the time.
✨ My preferred order: The combination of Stop-Loss and Take-Profit, because it allows me to trade with discipline and reduce the stress of constantly monitoring the market.
📈 Real example:
Recently, I bought ETH with a limit order at a low price. To protect my investment, I placed a Stop-Loss just below support and a Take-Profit near a key resistance. Thus, when ETH went up, I closed with profit, and if it went down, the Stop-Loss saved me from a larger loss. That strategy helped me sleep well and secure a good outcome.
💡 Tip: Always define your risk and profit levels before entering a trade. The right type of order can make the difference between winning or losing!
Today I share a quick guide on the most common types of orders in trading and how to use them to maximize your profits and minimize risks.
🔹 Market Orders:
They are executed at the current market price. They are quick and ensure that the order is completed, but the price may vary if the market is volatile.
➡ Use when I want to enter or exit quickly without waiting.
🔹 Limit Orders:
You set a specific price to buy or sell. The order only executes if the market reaches that price.
➡ Ideal for buying low or selling high, but it may not execute if the market does not reach that price.
🔹 Stop-Loss:
Automatic order to sell (or buy short) when the price hits a defined level, limiting losses.
➡ Essential to protect your investment against unexpected drops.
🔹 Take-Profit:
Automatic order to close a position with profit when the price reaches a target.
➡ Perfect for securing profits without having to be on alert all the time.
✨ My preferred order: The combination of Stop-Loss and Take-Profit, because it allows me to trade with discipline and reduce the stress of constantly monitoring the market.
📈 Real example:
Recently, I bought ETH with a limit order at a low price. To protect my investment, I placed a Stop-Loss just below support and a Take-Profit near a key resistance. Thus, when ETH went up, I closed with profit, and if it went down, the Stop-Loss saved me from a larger loss. That strategy helped me sleep well and secure a good outcome.
💡 Tip: Always define your risk and profit levels before entering a trade. The right type of order can make the difference between winning or losing!
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#CEXvsDEX101🔥
Today I want to share my ideas about the differences between centralized exchanges (CEX) and decentralized exchanges (DEX). A key comparison for every crypto investor!
🔹 Pros of CEX:
Higher liquidity and larger volumes, ideal for quick and large trades.
More user-friendly interface and available customer support.
Allow purchases with fiat currencies and access to many advanced features (futures, loans, staking).
Centralized security: in case of problems, they usually have insurance and recovery protocols.
🔹 Cons of CEX:
You own the account, but not the private keys (no total control of your funds).
Risk of hacks on the platform.
Dependence on the platform, possible freezing of funds or regulatory restrictions.
🔹 Pros of DEX:
Total control over your funds, you manage the private keys (greater sovereignty).
No intermediaries, greater privacy and resistance to censorship.
Immediate access to new and less regulated tokens.
🔹 Cons of DEX:
Lower liquidity, there may be slippage on large trades.
More complex usability, requires technical knowledge.
Variable and sometimes high gas fees (on networks like Ethereum).
✨ Which do I prefer and when?
For fast trading, with high volumes and convenience, I prefer CEX like Binance or Coinbase. To maintain absolute control of my funds or interact with emerging tokens, I use DEX like Uniswap or PancakeSwap.
🔍 What do I consider when choosing?
My level of trust and experience.
The type of asset and volume to trade.
The need for privacy or anonymity.
The ease and costs of the platform.
💡 Advice for those using a DEX for the first time:
Do thorough research on the token and the network, test with small amounts to avoid losses from errors or high fees, and always ensure that your wallet is well protected. Patience and learning are key!
Today I want to share my ideas about the differences between centralized exchanges (CEX) and decentralized exchanges (DEX). A key comparison for every crypto investor!
🔹 Pros of CEX:
Higher liquidity and larger volumes, ideal for quick and large trades.
More user-friendly interface and available customer support.
Allow purchases with fiat currencies and access to many advanced features (futures, loans, staking).
Centralized security: in case of problems, they usually have insurance and recovery protocols.
🔹 Cons of CEX:
You own the account, but not the private keys (no total control of your funds).
Risk of hacks on the platform.
Dependence on the platform, possible freezing of funds or regulatory restrictions.
🔹 Pros of DEX:
Total control over your funds, you manage the private keys (greater sovereignty).
No intermediaries, greater privacy and resistance to censorship.
Immediate access to new and less regulated tokens.
🔹 Cons of DEX:
Lower liquidity, there may be slippage on large trades.
More complex usability, requires technical knowledge.
Variable and sometimes high gas fees (on networks like Ethereum).
✨ Which do I prefer and when?
For fast trading, with high volumes and convenience, I prefer CEX like Binance or Coinbase. To maintain absolute control of my funds or interact with emerging tokens, I use DEX like Uniswap or PancakeSwap.
🔍 What do I consider when choosing?
My level of trust and experience.
The type of asset and volume to trade.
The need for privacy or anonymity.
The ease and costs of the platform.
💡 Advice for those using a DEX for the first time:
Do thorough research on the token and the network, test with small amounts to avoid losses from errors or high fees, and always ensure that your wallet is well protected. Patience and learning are key!
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