When it comes to the cryptocurrency market, the closing can be an incredibly tough concept for traders to grasp. After all, a cryptocurrency exchange is essentially an ever-changing market where prices fluctuate constantly 24/7. In practice, this means that there’s no real definitive answer as to whether or not any given cryptocurrency will close. In other words, anything could theoretically happen at any given moment in time and the likelihood of that happening is almost always dependent on the current state of the market rather than any external factors such as regulatory changes or industry news. That said if we take a look at some of the most popular cryptocurrencies today and their average closing prices over the past month or so, it’s easy to see why people frequently assume that all digital assets follow a similar closing strategy.
Does the Crypto Market Close?
No, the Crypto market does not close. The Crypto market is open 24 hours a day, 7 days a week.
The Main Reason For Not Closing The Crypto Market
The Only Time to Close a Trade is When You Take One
A lot of traders decide to close a trade when the price of a cryptocurrency has fallen by 20-50 percent from its all-time high. While this sort of drop can result in big profits, it is not the time to close a trade. Instead of trying to predict when the price is about to go down, you should take advantage of opportunities that come your way. When you are short trade and prices rise, there will be a moment where you think you can close the trade and lock in profits. Yet, do not give in to this urge. Keep the position open and wait for the price to fall again. You will be surprised to know that 80 percent of the time, the price will fall by the very next day.
Exchanges Are Not Part of the Crypto Ecosystem
There are a lot of traders who close the market when a cryptocurrency is listed on an exchange. This is a mistake because exchanges are not part of the ecosystem of any cryptocurrency. They are just a place where a cryptocurrency can be bought and sold. Therefore, when you close the market on an exchange, you are not closing the market of any particular crypto. Many crypto traders close their trades when a token is listed on an exchange because they think it is a sign that “the market is finished” or that the listing “sucked all the air out of the market.” However, the truth is that exchanges are here to stay. They are simply a way for users to buy and sell tokens, just like how we use traditional stock exchanges to buy and sell stocks.
New Investors are Always Appearing on the Scene
Investment trends are very dynamic in the crypto world. At times, a lot of attention is focused on new token-based investment products, like security tokens. The excitement around these new products often causes a sudden rise in the price of cryptocurrencies. When this happens, a lot of amateur traders close their trades, thinking that it is the perfect time to get some easy profits. Yet, this is not the right time. The markets are still in the process of adjusting to this new trend and they will go through a period of adjustment before it settles down. In fact, it is better to invest during these phases because you get the best of both worlds. You can enjoy the high returns of the new trend while at the same time, you are not participating in the market’s volatility. Invest in an exchange-traded fund (ETF) or an index fund and forget about closing the trade because you are not in the right mind frame to do so.
There Is No Tie Between Fiat and Cryptocurrency
When you close the market, you are not only closing an investment opportunity, but you are also closing a financial opportunity. You are not only giving up the profit you earned from your investment, but you are also giving up the chance to earn more from it. If you have bought 6 BTC for $10,000, and the price of BTC falls to $5,000, you have lost your entire investment. If you close your position, you will end up losing another $5,000. You must understand that losing more money does not make you a better person. It does not change your financial status at all. The only thing that will change is the price of your investment. If you have bought the same amount of BTC, 5 years from now, your investment will be worth $10,000 because of the growth of the market. Closing your position, on the other hand, will result in a loss of $5,000.
The Easy ways to Take Advantage of the crypto market
Invest in Cryptocurrency Platforms
The best way to start investing in the cryptocurrency markets is by investing in a cryptocurrency platform. These are companies that make it easier for people to get involved with the cryptocurrency world. Some of the best platforms for new investors include Coin base, Kraken, Circle Invest, Robinhood, and Blockchain. For people who are interested in trading cryptocurrencies, investing in a platform that offers a trading service is the best way to go about it. Coin base, for instance, is a great place to get started. It’s one of the most popular cryptocurrency exchanges in the world, and it provides an easy way for people to purchase and sell digital currencies. When it comes to trading, the Coin base has a great interface, which makes trading cryptocurrencies simple.
Learn to Trade
If you’re interested in trading cryptocurrencies, it’s important to learn how to trade. This will help you to avoid the majority of the common trading mistakes that beginners make. And, as cryptocurrencies continue to grow in popularity, more and more people will want to get involved. However, the majority of them have never traded before, so there’s a lot of room for many people to have great success. There are many trading platforms that can give people the chance to get started with the basic principles of trading. And, using these platforms and getting a basic understanding of how trading works will help a lot with investing in the cryptocurrency markets.
Join an Exchange or a Trading Group
People who want to get involved with trading cryptocurrencies can join an existing trading group or create their own group. Trading groups are already in place all over the internet, and they can be found by searching for crypto talk forums and Telegram groups. There are a lot of benefits to joining an existing trading group. For one thing, you’ll be able to get help from other members of the group. It’s very likely that many of the people in the group have already invested a lot of money in cryptocurrencies, so they’ll be happy to help new people get started. Another benefit of joining an existing trading group is that you’ll be able to learn from experienced traders. The experienced traders in the group will be more than happy to help new people with their trading.
Borrow and lend
One of the easiest ways to get started with investing in cryptocurrencies is to borrow and lend. This involves borrowing cryptocurrency and then selling it and making a profit when the price increases. The most widely used website for borrowing and lending is Local Bitcoins. When it comes to borrowing and lending, there are a couple of important things to keep in mind. Firstly, it’s important to find a reputable source for lending and borrowing. A lot of people refer to online marketplaces like LocalBitcoins, but these sites are not regulated. So, you could get robbed or get scammed if you use them for lending and borrowing.
HODL and wait for the price to increase again
For those who want to get involved in the cryptocurrency markets but don’t want to risk a lot of money, there’s another approach. It’s called Holing. This stands for holding onto your cryptocurrency even when the price is low. The idea is that when the price goes up, you can sell your coins when they’re more valuable. There’s a lot of logic behind this approach. For one thing, the fact that the price of cryptocurrencies has gone down a lot in the past tells people that they should buy when it is cheaper. So, if you see the price of a cryptocurrency is low, you should buy some of it.
Hold as a long-term investment and diversify your portfolio
Investing in cryptocurrencies is risky, but it can be an exciting way to diversify your portfolio. It’s important to diversify your investment portfolio with a variety of assets, including stocks and bonds, gold, and real estate. Diversifying your investment portfolio helps to protect you from any single investment risk. It’s also important to remember that investing in the stock market and investing in cryptocurrencies are two different things. One should not replace the other. You should always invest a healthy amount of money into your investment portfolio.
The Bottom Line
Overall, April 2019 turned out to be a tough month for the cryptocurrency market as the price of most top coins fell substantially, with the exception of Bitcoin Cash. Despite this, the average closing price of the top cryptocurrencies in April did provide some interesting insights into the current state of the market.
