The Round-the-Clock World of Crypto Trading: Opportunities, Pitfalls, and Strategies

The Round-the-Clock World of Crypto Trading: Opportunities, Pitfalls, and Strategies

In this latest podcast, “The Round-the-Clock World of Crypto Trading: Opportunities, Pitfalls, and Strategies”, Darren Franks chats with Peter Curk, at ICONOMI.

Welcome back to Talking Success, one of the Best FinTech podcasts globally! In this episode, we explore the psychological and strategic aspects of taking profits in cryptocurrency trading, emphasizing the importance of discipline, automation, and thorough research. It also delves into B2B crypto solutions, offering insights for fintech companies looking to integrate crypto services.

The Allure of Constant Trading

The crypto market never sleeps. Unlike the NASDAQ, FTSE, or other traditional financial indices, crypto trading is a relentless cycle. This perpetual trading environment can be exhilarating. As one trader humorously noted, the excitement of checking your phone first thing in the morning to see if you’ve become a millionaire overnight can quickly turn to disappointment when you realize your investment has plummeted by 20%.

This constant activity is both a boon and a bane. On one hand, it allows traders to react instantly to market changes, capturing fleeting opportunities. On the other hand, it can lead to a kind of trading addiction, reminiscent of the early days of retail Forex trading, where the promise of easy money lured many into the market. This non-stop nature can amplify stress and lead to impulsive decisions driven by emotion rather than strategy.

The Psychological Pitfalls

Investing in crypto isn’t just about understanding market trends; it’s also about mastering one’s own psychology. Fear and greed are potent forces that can lead to irrational trading behaviors. For example, many traders set stop losses too narrowly, selling their holdings in a panic during minor downturns, only to miss out on subsequent recoveries. Conversely, greed can lead to unrealistic expectations, with some investors holding out for a 1000x return and feeling dissatisfied with a more modest, yet still substantial, 70% gain.

This psychological aspect is exacerbated by social media and so-called crypto influencers. These individuals often push specific coins with promises of astronomical returns, creating a false sense of security and leading many to make poor investment decisions. It’s crucial to approach such advice with skepticism and to understand that these influencers may not always have the expertise or transparency to back their claims.

The Realities of Trading: Success Rates and Strategies

The conversation revealed that while some traders do find success, the majority struggle to maintain consistent profits. Data from trading platforms indicate that crypto trading is slightly more favorable than Forex trading for retail traders, mainly because cryptocurrencies have generally been on an upward trend over the past decade. However, this upward trend can be misleading, especially for beginners who might be better off adopting a “hold” strategy rather than frequent trading.

The Influence of Social Media and Regulation

Social media plays a significant role in shaping traders’ expectations and behaviors. Influencers often promote specific coins, promising astronomical returns. However, these promotions are typically not based on sound financial advice and can be misleading. The podcast highlighted the difference in regulatory approaches between the UK and the European Union. The UK has taken steps to regulate the language and promises used in crypto promotions, aiming to protect consumers from unrealistic expectations and potential fraud.

Regulation and Consumer Protection

The UK has implemented regulations to prevent misleading promotions and ensure consumer protection. These regulations prohibit the use of certain phrases and the involvement of influencers in pump-and-dump schemes. Meanwhile, the European Union’s comprehensive MICA directive aims to regulate crypto service providers and token issuers, ensuring they meet specific standards before offering their products to consumers. This regulatory framework is designed to protect investors and maintain market integrity.

Liquidity: A Critical Consideration

Liquidity is a crucial factor in crypto trading. It refers to the ability to buy or sell an asset without significantly affecting its price. Low liquidity can trap investors, making it difficult to sell their holdings without incurring substantial losses. The podcast discussed the importance of choosing coins with sufficient liquidity and trading volume, as well as the need for platforms to monitor and manage the liquidity of listed assets actively.

Evaluating Coins and Platforms

Investors should carefully evaluate the coins they invest in and the platforms they use. Checking the historical performance of a coin, its trading volume, and whether it is listed on multiple exchanges can provide insights into its liquidity and potential risks. Platforms like the one discussed in the podcast conduct thorough due diligence before listing coins, ensuring they meet specific criteria for legal compliance, project viability, and liquidity.

The Role of Experienced Traders

Experienced traders on platforms can offer valuable insights and strategies for newcomers. Some platforms allow users to copy the investment strategies of seasoned traders, potentially improving their chances of success. However, the podcast warned against blindly following influencers who promote specific coins without transparency about their trading performance.

The Greed Index: A Market Sentiment Tool

The podcast introduced the concept of the Greed Index, which measures market sentiment and can serve as a useful tool for traders. High levels on the Greed Index may indicate inflated prices and potential market corrections, while lower levels suggest reduced market enthusiasm. Using this index as part of an overall trading strategy can help investors make more informed decisions.

Emotional Attachment and Profit-Taking

One of the major themes discussed is the emotional attachment that traders often develop towards certain cryptocurrencies. Take, for example, XRP (Ripple). There’s widespread speculation about its potential to revolutionize the monetary system, possibly replacing traditional SWIFT payments. Some enthusiasts predict that XRP could reach extraordinary heights, sparking dreams of immense profits.

However, when traders see their investments double in value—from $0.40 to $0.80, for instance—they often hesitate to take profits. The belief that the price will continue to rise, perhaps to “the moon,” can be overwhelming. This emotional attachment and hope for future gains can cloud judgment, leading many to miss out on securing tangible returns.

The Importance of Discipline and Automation

To counteract emotional biases, our experts advocate for disciplined trading strategies. By setting up automation rules within trading platforms, traders can detach emotionally and treat transactions purely as business operations. This approach emphasizes the importance of having pre-defined rules for taking profits and managing investments, rather than making decisions based on real-time market fluctuations and emotions.

Strategies for Setting Up Profit-Taking Rules

Before diving into the market with real money, it’s crucial to establish clear profit-taking rules. One suggested strategy is to incrementally take profits as prices rise. For instance, if a coin’s value increases by 10%, you might withdraw 10% of your profits. This way, you still benefit from potential further gains while securing portions of your earnings.

The exact percentages and thresholds will vary based on individual risk tolerance and investment goals, but the key is consistency and pre-planning. This method helps avoid the “learning fee” that many new traders pay by either staying in the market too long or exiting prematurely based on gut feelings rather than strategy.

Managing Real Money vs. Theoretical Investments

The podcast highlights a critical point: theoretical investments look different once real money is involved. Charts and trends can seem straightforward during analysis, but once your hard-earned cash is on the line, the psychological impact can be profound. The fear of losing money can paralyze decision-making, while the greed of potential gains can lead to reckless trading.

By setting up automation rules beforehand, traders can mitigate these psychological pressures. This preparation allows for a more objective approach to trading, focusing on the mechanics of transactions rather than emotional reactions.

Post-Profit Decisions

A common question among traders is what to do with the profits once they are taken. The decision varies based on individual circumstances and goals. Some may choose to convert their profits into more stable assets like Bitcoin, which has demonstrated long-term growth. Others might diversify into different asset classes such as gold or traditional capital markets.

The ultimate goal is to use profits in a way that aligns with your financial objectives, whether it’s reinvesting, funding personal expenses, or saving for the future. The podcast encourages traders to consider their broader financial plans when deciding how to allocate profits.

Final Thoughts

The podcast concludes with essential takeaways for both retail and professional investors. Key among them is the importance of not just looking at price movements but also considering liquidity and the historical context of the assets. Taking profits should be a fundamental part of any investment strategy, helping traders secure gains and mitigate risks.

As the crypto market continues to grow and evolve, staying informed and disciplined remains crucial. Whether through active trading, automated strategies, or passive investment approaches, the goal is to make informed decisions that align with your financial goals and risk tolerance.

For those interested in exploring more about crypto trading strategies or integrating crypto solutions into their business, the podcast provides valuable insights and resources to help navigate this dynamic landscape.



Taking profits helps secure gains and manage risk, preventing emotional attachment and potential losses if the market turns.

Automation removes emotional biases from trading decisions, ensuring that pre-set strategies are followed consistently, which can lead to more disciplined and potentially more profitable outcomes.

Liquidity ensures that traders can buy or sell their assets quickly without causing significant price fluctuations, which is crucial for effective profit-taking and risk management.

Non-professional investors can use automated trading strategies, set predefined profit-taking rules, and adopt passive investment approaches like index strategies to manage their investments efficiently.

White-label crypto platforms allow fintech companies to quickly and efficiently offer crypto services under their own brand, leveraging existing technology and regulatory compliance without the need for extensive in-house development.