It has been said countless times that patience in the market is key, but sometimes, can we differentiate between being patient or wasting our time. Because you can be waiting and being patient without having a goal. Boom!! You realize you have been wasting your time. But then, experience will teach you better. The market is filled with opportunities, but timing is the best thing you can do. Sometimes the best trading strategy is not to trade, just be patient and preserve your liquidity.
As a crypto trader we sometimes put so much pressure on ourselves, we feel that because, the market is open 24 hours everyday, that means there is always an opportunity to trade everyday. So we set a goal to constantly trade daily and make profit everyday, forgetting that one of the best ways to make profit from the market is to only trade when there is an opportunity. I have been trading arbitrage trading for a while now, and I have been learning a lot about patience and preserving my liquidity.
It pays more to understand the market and the pattern it’s moving before sparing your liquidity into trading. Waiting for a better market condition is one of the best ways to preserve your liquidity. Although this is for the people that prefer trading crypto in future trading and arbitrage trading , as for spot traders, you really don’t have much things to worry about, just find a good coin with utility buy and wait.
In my experience as an arbitrage trader, patience has been helping me a lot. As an arbitrage trader, I always look for arbitrage opportunities using Coingecko, sometimes, when I see an opportunity, I just don’t jump into buying the asset and sending it to the next exchange. Sometimes it could just be a slight change in volatility between exchanges, this is why I prefer using assets with faster blockchains like BNB, LUNA Etc. This way, it’s faster to do the transaction before a slight change in volatility will have the value of my asset sink. Just like when I did an arbitrage trading with Litecoin, it took over 30 minutes before the transfer happened, I ended being at loss because of time wasted and volatility.
Have a clear goal of what you want to do with your liquidity so you don’t go losing your money because of the pressure of constantly trading.