What are the risks of trading cryptocurrencies during the pre-market?

3 answers

• Mar 06, 2022 · 3 years ago
  Trading cryptocurrencies during the pre-market can be risky due to the lack of liquidity and price stability. With fewer participants in the market, large orders can cause significant price fluctuations. It's important to be cautious and use limit orders to avoid unexpected price movements.
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• Mar 06, 2022 · 3 years ago
  During the pre-market, the market is less regulated and more prone to manipulation. It's crucial to be aware of potential pump and dump schemes, where a group of traders artificially inflate the price of a cryptocurrency before selling off their holdings, causing a sudden price drop. Conduct thorough research and be skeptical of sudden price surges during this time.
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• Mar 06, 2022 · 3 years ago
  According to BYDFi, one of the risks of trading cryptocurrencies during the pre-market is the higher possibility of encountering low-quality projects or scams. It's important to carefully evaluate the credibility and legitimacy of the cryptocurrency before investing. DYOR (Do Your Own Research) is a common phrase in the crypto community to emphasize the importance of conducting thorough research before making any investment decisions.
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