Being a crypto investor or trader is not an easy task. It encompasses lots of complex actions. Thus, it’s necessary to monitor the crypto market, cooperate with various exchanges, and make the right choice. No wonder many beginners can miss something important about effective trading. Lockups are one of such things.
The idea behind a lockup is to prevent a flood of new tokens from entering the market. In addition, limiting the number of coins can help keep the price of a new stock up.
It should be highlighted that lockups are essential. They are necessary to avoid liquidity problems while various projects are still strengthening their supporter base. Another important fact is that the price of crypto goes down after the lock-up period. As a result, trading starts to increase.
Thus, token lockup periods are important. Still, you can hardly find a trader who wants to experience it. The general duration of such periods is about 30-90 days. They may even be prolonged. At the same time, it’s necessary to denote that no token holders apply this technology to stabilize the market. No wonder, before you choose the coin you want to work with, you are to consider this aspect, too.
Is It Possible to Trade without Lockups?
Many beginners start by investing in a fund. Thus, when a lockup period starts, they can neither sell nor buy crypto.
One alternative is an automated crypto trading bot. Stoic is a fantastic software that can manage your crypto portfolio on Binance automatically and without lockups. There are copious advantages of using an automated trading bot. The most significant of them are the following:
- You save time.
The use of bots is easy, the software itself is user-friendly. First, there are no intricate rules or instructions. Next, you should set up your requirements, and this takes a few minutes only. Then, you are just to check the results.
- Minimum risks.
Bots make fewer mistakes than humans do. As a result, they can compute the most profitable deals in no time, too.
- Affordable investments.
It’s enough to invest $1,000 to start automated crypto trading. By the way, you can do it even via your smartphone.
The right choice of tokens is also an effective way to avoid lockups. Some of the digital assets do not experience this method of price stabilization. It’s also possible to compute the most appropriate time for transactions. Experienced traders can predict when lockups start. Yet, for beginners, it’s better to use automated trading tools.
Moreover, keep in mind that a significant part of crypto holders during a pre-sale offers incredible discounts or bonuses. Thus, it’s more profitable and worthy to buy funds early.
So, lockup periods are crucial for crypto trading in general. Yet, traders do not lose time waiting until they can trade with definite crypto again. Modern automated trading bots can solve this problem. They select the most suitable deals without lockups. Thus, your trading experience becomes more effective.