Ethereum: What is the Sell Walls strategy?
Cryptocurrency Trade in the World, especially among institutional investors and risk insurance funds, Bid Walls and Sell Walls have two strategies to help manage risk and protect profits. However, in the case of Ethereum, Kraken was used for a certain type of sale wall to make prices low. But what lies in this strategy and how does it work?
bid walls and sales walls
In essence, the border of the proposal is a marginal order provided on the cryptocurrency exchange, indicating the platform to buy the property at a certain price. The purpose of the proposal wall is to prevent the price to fall below the target level and thus protect the buyer’s profit. On the other hand, the sales border is a marginal order indicating the platform to sell the assets at a certain price to record profits.
“Kraken’s Sell Wall Strategy”
In Kraken, Ethereum (ETH) prices were low using a sales border strategy. This means that when ETH prices are almost all time high or high volatility, Kraken has placed purchase orders at a lower level to avoid price drops. The scope of this exchange is also relatively small, which limits the potential for large -scale purchase or sale.
Why do you need to sell walls
There are several reasons why selling walls can be used in Ethereum trading:
- Market volatility : High market volatility can lead to significant price fluctuations, making it difficult for traders to predict price changes.
2.
- Contractive part : Sold at lower prices, Kraken is effective in contradiction with market forces trying to increase prices.
Challenges and restrictions
While the sales walls can be effective in risks, they also have restrictions:
- Limited profitability : Buying ETH at low levels may not receive significant profit for traders.
2.
Conclusion
In conclusion, Ethereum Sales Border Strategy is a valuable tool for risk management and protection profits in large -scale markets. However, merchants need to understand the restrictions on the sales borders and to use them wisely to combine risk management method with market analysis and trade strategies that complement or neutralize this tactic.
Recommendations
For Ethereum merchants in Krakene, consider the following:
- Risk Management : Use to sell walls as a tool for risk management, but be aware of potential restrictions.
- Market Analysis : Constantly monitor ETH prices and adjust your strategy accordingly.
3.
Understanding the Sell wall mechanics and efficiently using them with other market analysis methods, Kraken traders Ethereum Traders can optimize their risk management method and achieve better results in this large -scale market.
