“Ultimate Guide to Crypto Trading: From TVL to get profit”
When the world of cryptocurrencies is constantly evolving, traders and investors are constantly looking for new strategies to maximize their profits and at the same time minimize their losses. In this article, we dive into two key concepts that have become the necessary tools for successful crypt trafficking:
TVL (total value locked) and
profit .
What is TVL?
The total locked value (TVL) refers to the total amount of cryptocurrency that has been locked in an intelligent contract or stock exchange. It represents a collective value of all locked assets, including tokens, cryptocurrencies and even NFT (non -blessable tokens). The higher the TVL, the more liquidity is available for trading.
Why is TVL important?
The high TVL indicates a prosperous community of traders who have collected their resources to invest in various assets. This increased liquidity leads to a better discovery of prices, reduced volatility and improvement of market efficiency. In addition, a large TVL can also attract institutional investors who can increase demand for specific cryptomains.
How does TVL affect Krypto prices?
When TVL is high, it tends to have a positive effect on Krypto prices. This is because there are more traders on the market, increasing liquidity and promoting prices. With rising prices, more buyers will enter the market, which intensifies the upward trend. Conversely, if TVLs fall, this may lead to reduced liquidity, which may result in lower prices.
What is price steps?
The price action concerns the dynamic behavior of the price table cryptocurrency including trends, ranges and twists. It includes a variety of aspects, for example:
* TRENDS : Long -term movements that indicate the overall market direction.
* ranges : consecutive heights and lows that indicate a potential bull run or bear.
* Radsions : Sudden changes in price reports that can signal a shift in momentum.
Why is the price action necessary?
Price shares provide traders with valuable information on the market sentiment, trends and potential entry points. Analysis of price charts can identify traders:
* level of support and resistance : key areas in which prices tend to bounce or tow.
* Trend reversal: Changes in the market direction.
* GAPS
: Unexplained pricing movements that may indicate a new trend or reversal.
Profit: art of output strategies
Profit profit is the output strategy used by traders to lock profits from their investments. This includes determining a predetermined price level and sales at this point regardless of the direction of the market.
Why do traders use profits?
Traders use profits for several reasons:
* Risk Management : Restriction of potential losses and protection of their capital.
* Liquidity Management : Quickly terminate positions and minimize drawing.
* Consistency : maintain a consistent trading plan and avoid emotional decisions.
How to Set Effective Usage of Profit
Merchants should be determined to determine effective profits:
* Use order to lose stop : Set the target price level for sale for 1-2% margin above the current price.
* Select optimal output levels : Select prices that balance the risk and provide sufficient liquidity.
* Market Terms and Conditions Monitor : Edit to profit based on changing market sentiment.
In conclusion, the total value of the locked (TVL) is a necessary metric for the crypt of traders to understand the liquidity and potential of their market. Price action is the dynamic behavior of a cryptocurrency price table that provides valuable information on the market trends and reversals. By combining these two concepts with effective profit strategies, traders can optimize their business performance, reduce risk and maximize profits.