Inverse perpetual contracts offer traders a unique way to speculate on the price movements of cryptocurrencies and are denominated in the base currency, such as BTC.

Inverse perpetual contracts offer crypto traders a unique way to speculate on the price movements of cryptocurrencies without holding the underlying asset in 

, such as USDT and USDC. These contracts are denominated in the base currency (for example, BTC) and allow traders to engage in futures markets with leveraged positions.

Currently, perpetual futures dominate the crypto derivatives market. 

 to CoinGlass, on October 31, 2024, Bitcoin’s perpetual trading volume was $18.2 billion, far exceeding the 

Inverse perpetual contracts are a type of futures contract used in crypto derivatives markets. They differ from traditional futures contracts, which often require fiat or stablecoin collateral. Inverse perpetual contracts are denominated and settled in a base cryptocurrency, such as Bitcoin (BTC) or Ether ETH). This unique structure allows crypto traders to speculate on the price of a cryptocurrency without using a stablecoin such as USDT as collateral.

For instance, a trader using an inverse BTCUSD perpetual contract can speculate on Bitcoin’s price in USD (U.S. dollars) while collateralizing their position in BTC. If the trade is profitable, the gains are paid out in Bitcoin, meaning traders can increase their Bitcoin holdings directly. 

, and allows traders to use Bitcoin and altcoins as the base currency. 

Why Crypto Traders Use Inverse Perpetual Futures Contracts

Crypto traders prefer inverse perpetual contracts for several reasons:

Inverse perpetual contracts function as a type of futures contract without an expiration date. Unlike linear futures, inverse perpetuals don’t need to be rolled over, allowing traders to hold positions indefinitely. Below, the key elements in the operation of these contracts are defined.

Key Components of Inverse Perpetual Contracts

Inverse perpetual contracts also feature an inverse pricing mechanism. For example, in a BTCUSD inverse contract, as the BTC price rises in terms of USD, fewer BTC are required to meet the contract's notional value, impacting profit-and-loss dynamics.

Key Differences Between Inverse Perpetual and Linear Perpetual Contracts

Inverse perpetual contracts differ from linear perpetual contracts in both their structure and settlement mechanisms. Below is a quick comparison:

How to Trade Inverse Perpetual Contracts on Bybit

Bybit currently supports nine (9) inverse perpetual contracts, and boasts a daily trading volume of almost $1 billion. Its exchange offers competitive fees starting at 

Bybit provides an easy-to-navigate platform for trading inverse perpetual contracts. Here’s a step-by-step guide to get started:

 for specific contract details and trading tools.

How to Calculate Profit & Loss for Inverse Perpetual Contracts

 is straightforward, but differs from the method for linear contracts. Take note of the following variables:

For long positions, P&L is calculated as follows:

For example, you buy 100 Q (for the BTCUSD pair) at an average price (E) of $10,000, and sell at $12,000 (L). 

Profit = 100 × [(1/10,000) − (1/12,000)]

For short positions, P&L is calculated as follows:

If you buy 100 Q (for the BTCUSD pair) at an average price (E) of $10,000 and sell at $8,000 (L), the P&L is calculated as follows:

Risk Exposure of Inverse Perpetual Contracts

Following are some risks associated with trading inverse crypto perpetual contracts.

Conclusion: Getting Started with Inverse Perpetual Futures

Bybit's inverse perpetual futures platform offers high liquidity and advanced trading tools for cryptocurrency derivatives. Our user-friendly interface supports efficient position management and competitive fees. However, traders must understand that these instruments carry substantial risks, including potential loss of capital through liquidation and market volatility.

 is crucial. Use stop losses and avoid over-leveraging positions. Start with small position sizes, and maintain adequate margin buffers. Never risk more than you can afford to lose. You can practice your strategies on 

 without financial risk, giving you a hands-on way to learn the platform’s features and market dynamics.

Intermediate

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How to Trade Inverse Perpetual Futures on Bybit

Sonic, a layer-2 blockchain on Solana, has surpassed $50 million in staked delegation on the Solayer platform, marking it as the largest delegated Actively Validated Service (AVS) on Solayer.

Daily Top Performer — Arkham Intelligence (ARKM)

The S&P 500 futures rose 0.3% on Monday, recovering from last week's losses as investors focused on the U.S. presidential election and the Federal Reserve's policy decision. The Reserve Bank of Australia is expected to keep the cash rate steady at 4.35%, with inflation indicators showing an increase. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 0.58%, with Bitcoin and Ether rising by 0.58% and 0.76%, respectively in the past 24 hours.

Today's top performer is ARKM, which surged 8.3% after QuillAI Network enhanced QuillCheck with Arkham Analytics to improve asset security in Web3.

Arkham Intelligence (ARKM), founded on 2020, one of the top-performing meme coins in March 2024, is a crypto intelligence platform that uses advanced techniques to link blockchain transactions to real-world identities, enhancing transparency and efficiency in the market. QuillAI Network has 

 Arkham's on-chain analytics into QuillCheck, its token due diligence AI agent. This enhancement allows QuillCheck to analyze token holder activity, community size, liquidity, and specific wallets, providing Web3 users with improved asset security and smarter trading insights.

Check Out the Latest Prices, Charts, and Data of 

Sonic, a layer-2 blockchain on Solana, has surpassed $50 million in 

 on the Solayer platform, marking it as the largest delegated Actively Validated Service (AVS) on Solayer. To enhance the Solana restaking ecosystem, Sonic has partnered with Solayer and Adrastea, aiming to boost rewards for Solana delegators. Sonic's CEO, Chris Zhu, highlighted the milestone as evidence of the growing sophistication of Solana's decentralized services. Analysts predict significant growth for Solana's restaking and liquid staking solutions, potentially rivaling Ethereum's established market. Currently, Solana's liquid staking has a total value locked (TVL) of $5.9 billion.

Between October 28 and November 1, 2024, Bitcoin Spot ETFs saw strong inflows, particularly in Non-GBTC funds, which attracted $2,274.1 million, while GBTC experienced outflows totaling $53.9 million, resulting in a net inflow of $2,220.2 million across all funds. This trend highlights a notable preference for Non-GBTC ETFs. Cumulatively, GBTC's total flows stand at a negative $20,116 million, whereas Non-GBTC funds have accumulated $44,342 million, bringing the overall total to $24,226 million.

 on Galxe will have a snapshot on November 6th, so participants must hold at least 1 USD0 token by that date. To obtain USD0, users can visit the Usual app, click "Mint USD0," select a supported token, and use the early access code 477GP. The TGE and airdrop are tentatively scheduled for mid-November, promising exciting developments for the community. For more details, check the Galxe campaign 

Beginner

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Sonic SVM Hits $50M in Staked Delegation, Partners for Restaking Growth

Bybit Airdrop Hunt allows users to participate in airdrops from trending crypto projects by completing simple tasks and referring friends.

 is a distribution of free tokens by a project (often when launching) to reward its community. Airdrops are strategic marketing stunts aimed at popularizing a project across the cryptocurrency market by creating buzz among crypto lovers.

As the cryptocurrency market continues to remain vibrant, more projects are entering the space, and most are offering airdrops to those who embrace their protocols at an early stage. Now, Bybit has introduced Airdrop Hunt, an event that allows you to receive airdrops from trending projects through a lottery.

 is a recurring event on Bybit’s spot listing platform. It allows you to participate in a lottery where you’re rewarded with tokens from the participating project after completing a given number of specific tasks

. The event is designed to allow Bybit users to benefit from airdrops by popular projects in an easy and user-friendly way.

To participate, you’ll need to have a Bybit account and complete various tasks to qualify for the lottery. Any Bybit user who has completed the platform’s individual 

During the Airdrop Hunt event, you can also invite friends to join Bybit, qualifying you for a referral prize. In order for you to receive the prize, your friends need to use your referral code to join Bybit, get verified and then complete the tasks required to meet the event’s eligibility criteria.

During the Airdrop Hunt campaign period, you’ll need to complete tasks, such as the following:

All deposits made during the event period — from direct on-chain deposit transfers to

 — will be factored into the calculation. For example, if you deposit 10,000 

 into your Bybit account, and then purchase 5,000 PIXFI using both One-Click Buy and P2P, your accumulated deposit volume will be 20,000 PIXFI.

To calculate the trading volume, all Spot trades of the relevant token during the event period will be factored in. These include all 

Spot trades conducted via the Main Account and 

Even if you choose to withdraw your tokens during the event, you won’t be disqualified from the lottery, and it won't affect your eligibility criteria/cumulative deposits.

Once the Airdrop Hunt campaign for a token ends, you can claim your rewards, which will be sent to your Bybit Funding account within seven days after the event ends.

Since the event is conducted through a lottery, you aren’t guaranteed a win, even if you complete all the tasks. To conduct the draw for winners, a lottery algorithm is used (whereby the last digit of the first 

 after 1AM UTC on the day the event ends determines the winning UID).

00000000000000000001fe3b6587f62ebc09b9945634a41786a8673ad94e19fc

The last digit in the hash is 9. Therefore, the algorithm will prioritize selecting UIDs that end with 9, followed by UIDs that end with 9X, UIDs that end with 9XX and so on, until the total number of selected winners meets the predefined limit. The selected UIDs will be sorted in descending order.

Bybit users have received tokens via airdrops from top projects through the Airdrop Hunt, such as PIXFI, DOP1, 

. Let’s look at some details of top Airdrop Hunt campaigns.

 and utility token for Kroma, a scaling solution for the 

, which runs from Oct 29, 2024 to Nov 12, 2024, 5.8 million KRO tokens are up for grabs, divided into a 5 million KRO prize pool and an 800,000 KRO prize pool. 

By completing tasks, such as following Bybit and Kroma Network on X, quoting/reposting a post and completing a deposit of 1,000 KRO or 100 USDT, you’ll become eligible to share in the 5 million KRO token prize pool. Additionally, 800,000 KRO tokens are reserved for the first 8,000 referees who invite a friend to join Bybit and successfully participate in the event. 

, an Elon Musk–themed tap-to-earn project on 

’s blockchain that seeks to merge DeFi with gaming so that players can earn real crypto rewards. The total prize pool for the X airdrop campaign held in October 2024 was 240 million X tokens, attracting 48,668 participants. Winning participants were awarded an average of 80,000 X tokens each. 

 (ZK) proofs to empower users with the ability to open their Ethereum transactions selectively.

 The DOP1 event, which was held in July 2024, featured a total prize pool of 40 million DOP1. It drew 181,628 participants, with winners receiving an average of 2,000 DOP1 tokens each. 

All users who have completed the platform’s Know Your Customer (KYC) Lv. 1 Identity Verification can participate. 

: Institution users and market makers aren’t eligible to join.

2. Can Subaccounts be used to participate in Airdrop Hunt?

No. The Airdrop Hunt event is only for Main Accounts. However, any trading volume done through Subaccounts will be eligible.

3. Is there a 100% chance of winning in Airdrop Hunt?

No. Winning isn’t guaranteed, since the draw is done through a lottery.

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Bybit Airdrop Hunt: Completing Easy Tasks for Great Rewards

Some of the best MT5 brokers and exchanges such as Bybit and FP Markets offer diverse crypto options, low fees and high leverage with advanced trading features.

The top MetaTrader (MT5) crypto brokers combine advanced tools, competitive spreads and strong security, making them indispensable for crypto trading. With the powerful 

 platform, these brokers offer traders access to a wide variety of indicators, customizable charts and automated trading options — features that suit both beginners and seasoned traders. 

This article looks at the leading MT5 brokers known for delivering a smooth trading experience, highlighting why they stand out as excellent choices for those looking to trade cryptocurrencies.

MetaTrader 5 (MT5) is a versatile trading platform created by MetaQuotes software. It allows users to trade a variety of assets, including forex, stocks, futures and cryptocurrencies. Known for its efficient market analysis, MT5 excels with its advanced analytical tools, automated trading features and an intuitive, user-friendly interface.

Thanks to its advanced features and flexibility, MT5 offers numerous advantages for crypto trading as follows.

When selecting a reliable MT5 broker, the following are the key factors to keep in mind.

, a leading cryptocurrency exchange, recently expanded its trading capabilities with a pacesetting integration of the popular 

. Launched in 2018 and serving over 40 million users globally, Bybit is known for its diverse trading options, including spot, margin, futures and options markets, with access to over 1,200 cryptocurrencies and 60 fiat currencies. 

Bybit is remarkable for its robust security, employing a dual wallet system to keep user funds safe. Its user-friendly interface includes advanced charting tools and a mobile app, making trading accessible on the go. Bybit's competitive fee structure starts at just 0.1% for spot trading, with fees decreasing based on the user's VIP level. Combined with the option for up to 100x leverage (and up to 500x leverage on the Bybit MT5 platform), this makes Bybit especially appealing for high-frequency traders.

The recent integration with MT5 adds a new dimension to Bybit’s platform, with advanced trading features, 

 and the introduction of an NFT marketplace. Bybit's MT5 platform offers a wider selection of crypto trading pairs compared to other MT5 brokers, providing traders with more opportunities to diversify their portfolios and leverage various market trends. Furthermore, users can choose to create a free Bybit MT5 demo account and practice trading risk-free before they start using their main account.

FP Markets, established in 2005 and based in Sydney, Australia, is a reputable online trading platform regulated by ASIC, CySEC and FSCA. With a strong reputation, it caters to both beginning and seasoned traders, offering access to a wide range of financial instruments through the MetaTrader 4 and 5 platforms.

FP Markets’ competitive fee structure offers traders with standard accounts commission-free trading, while those with raw accounts are charged a low $3 commission per trade for a cost-effective option. The platform offers traders the opportunity to use leverage of up to 50x for crypto trading, and 500x for forex on professional accounts, giving traders the opportunity to amplify their potential returns. 

FP Markets also supports traders’ growth with an extensive library of educational resources and tools to help enhance trading skills. It’s renowned for its fast order execution (averaging under 40 milliseconds), and offers a free demo account for users to practice without financial risk. With robust security measures in place, FP Markets ensures that user funds and data are well-protected, providing a secure and reliable trading environment.

IC Markets is a prominent online trading platform regulated by ASIC, CySEC, and FSA. Based in Sydney, Australia, It was established in 2007 and has amassed a global client base of over 200,000 active users. The broker serves both retail and institutional traders with a broad range of trading opportunities.

One of IC Markets' key strengths lies in its low trading fees, with spreads starting as low as 0.0 pips. This cost effectiveness extends to crypto trading as well, with the platform charging low commissions that appeal to active crypto traders. Traders can access over 2,250 instruments, including forex, commodities, indices and cryptocurrencies, providing diverse options for building their portfolios. If you’re looking to amplify your crypto trades, the platform offers leverage up to 200x, which can significantly boost potential returns.

IC Markets features raw spread accounts that allow traders to employ strategies like scalping and hedging without any restrictions. The platform meets users’ educational needs with comprehensive knowledge resources, including webinars and tutorials, created for both beginners and experienced traders looking to sharpen their skills.

Established in 2006, AvaTrade is a well-known online broker that serves around 400,000 traders worldwide. The platform allows trading across various asset classes, including cryptocurrencies, without charging commissions on trades. With support for popular platforms like MetaTrader 4 and 5, AvaTrade offers a versatile trading experience, including access to around 20 cryptocurrencies for CFD trading. Traders can also benefit from leverage of up to 25x when trading crypto.

One of AvaTrade’s key advantages is its zero-commission structure, though spreads can vary depending upon the asset. Traders focused on digital currencies are required to pay an internal markup between 0.25% and 10% over regular market spreads. 

AvaTrade also prioritizes safety, offering negative balance protection to ensure that traders never lose more than their account balance. Its support for multiple trading platforms, including proprietary tools and the advanced MT5, further enhances the user trading experience.

XM is a global forex and CFD broker with a strong presence in over 190 countries, serving more than 10 million clients. Regulated by major authorities like CySEC, ASIC and IFSC, XM offers a user-friendly trading experience through MetaTrader 4 and 5 platforms. With access to over 1,000 tradable assets, including cryptocurrencies, the broker caters to a diverse range of traders.

XM features a competitive fee structure, with low spreads, no commissions on trades and no deposit or withdrawal fees. However, traders should be aware of inactivity fees that kick in after 90 days of account dormancy. The platform stands out for its commitment to providing a smooth trading experience, offering no requotes or trade rejections, thereby ensuring orders are processed seamlessly.

XM also provides a wealth of educational resources, such as webinars and demo accounts. For those interested in copying successful strategies, XM’s copy trading feature allows users to follow the moves of experienced traders, adding another layer of convenience.

Launched in 2001, FOREX.com is a leading retail forex and CFD broker owned by GAIN Capital Holdings. The platform serves a global base and is well-regulated in key markets, including the U.S. and U.K., ensuring a secure and trustworthy trading environment for its users. It offers a range of trading platforms, with proprietary options as well as MT5. 

The platform caters to both novice and experienced traders, providing advanced charting tools and support for algorithmic trading. This makes it an appealing choice for those seeking flexibility and technical depth in their trading experience.

FOREX.com maintains competitive spreads and generally low trading fees, though traders should note that fees for cryptocurrency trading can vary, and may include additional spreads. 

Impressively, FOREX.com gives users access to over 4,500 markets, including cryptocurrencies. In addition to its extensive educational resources, the platform also provides proprietary research tools and performance analytics to help traders refine their strategies and improve their overall performance.

FxPro is a global forex and CFD broker that has been serving over 870,000 clients across 173 countries since 2006. The platform caters to traders of all experience levels and supports a wide range of trading platforms, including its proprietary FxPro Trading Platform, MetaTrader 4 and 5 and cTrader.

FxPro offers competitive spreads and generally low trading costs, though fees for cryptocurrency trading may fluctuate. Traders gain access to over 2,100 markets, including cryptocurrencies, making it a versatile platform for those looking to diversify their portfolios. The broker is also known for its rich educational resources and advanced trading tools, ensuring that both novice and experienced traders can develop their skills.

For crypto traders, FxPro offers several unique advantages. The platform supports algorithmic trading through cTrader, allowing users to automate their strategies. It also provides access to a Virtual Private Server (VPS), enabling traders to run bots 24/7 without interruptions. FxPro also offers backtesting and strategy development tools, helping traders refine their approach before entering live markets.

Eightcap is a reputable Australian-based forex and CFD broker that stands out for its extensive range of offerings and strong regulatory backing from authorities like ASIC, FCA and CySEC. The platform is designed to cater to a wide spectrum of traders by providing access to over 250 cryptocurrencies in addition to forex, stocks and commodities. 

Traders can benefit from spreads as low as 0.0 pips and a commission of just $3.50 per lot on its Raw accounts. In addition, the absence of fees for deposits, withdrawals or inactivity makes it an attractive option for those who trade frequently or are looking to minimize their costs.

The platform supports both MetaTrader 4 and 5, offering advanced charting tools and automated trading options. Integration with TradingView further enhances the trading experience by providing comprehensive market analysis tools. 

Pepperstone, launched in 2010, is a global forex and CFD broker regulated by authorities such as ASIC and FCA. With over 400,000 clients across more than 160 countries, the platform offers access to over 1,200 trading instruments, including cryptocurrencies. However, it does not serve U.S. clients.

The platform offers competitive spreads, starting at $10 for Bitcoin and $3 for Ethereum, with no account, deposit or withdrawal fees (though third-party charges may apply). Traders also benefit from a variety of platforms, including MetaTrader 4 and 5, cTrader and TradingView, all of which support advanced and automated trading strategies.

For cryptocurrency traders, Pepperstone offers the ability to trade crypto CFDs without the need for a digital wallet. The platform's fast execution and low spreads make it an attractive option for those looking to trade digital assets efficiently. Also, the platform provides 24/5 customer support through multiple channels, and its advanced Autochartist and Smart Trader Tools to help users optimize their trading strategies.

When picking a broker, it's essential to focus on factors such as security, trading costs and platform quality to ensure a smooth and secure trading experience. MetaTrader 5 (MT5) is a flexible and powerful platform that makes cryptocurrency trading accessible to all. It provides advanced tools, automated strategies and an easy-to-use interface. The top MT5 brokers stand out for their competitive fees, fast trade execution and a wide range of assets, making them great choices for both beginning and seasoned traders.

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9 Best MT5 Brokers for Crypto Trading

Bybit Learn

Indicators

Trading

Stochastic RSI and RSI are indeed different. But, should you use Stochastic RSI or RSI for crypto trading? Here's what you must know!

Bitcoin is rewriting history in terms of valuations, breaking the resistance of $30,000 as of this writing (June 28, 2023). The recurring growth in Bitcoin and altcoins has spurred an army of new traders ready to dive into crypto trading. While most traders jump straight into the action, it’s always worthwhile to understand 

 that can strategize your entry and exit points for each trade. Stochastic RSI is one such indicator, allowing traders to identify market trends.

Let’s take a granular look at this technical indicator and its utility in crypto trading.

Stochastic RSI is a technical indicator built on the foundations of both the 

) indicator, It ranges on a scale from 0 to 1.

 Stochastic RSI allows a technical trader to identify whether an asset is in overbought (≥ 0.8) or oversold (≤ 0.2) territory. It takes into consideration both the RSI indicator and stochastic oscillator in order to derive market trends that are more sensitive in comparison to RSI alone. The stochastic RSI indicator (or StochRSI) thrives particularly through its ability to compare an asset's price range and closing price to support its market prediction for price turning points.

Since this indicator is closely related to RSI, it's essential to understand how the two are related. The RSI indicator tracks the momentum of an asset, for example, identifying whether a cryptocurrency is overbought or oversold. It measures in a range between 0 and 100, with values above 70 indicating overbought and values below 30 reflecting oversold positions.

However, RSI alone gives limited buy or sell signals, missing critical entry or exit points for intraday trading. Stochastic RSI, on the other hand, is more sensitive to market movements, allowing traders to find multiple entry/exit signals more granularly. However, it’s critical to combine stochastic RSI with other technical indicators to avoid early/late sell or buy calls.

Stochastic RSI examines the movements of the RSI indicator within a given period. It doesn’t emphasize current price levels. The most popular calculation period is 14 (days, sessions, hours or even minutes).

The resulting number is a figure between 0 and 1, swinging with a centerline of 0.5. Centerline crossovers are used primarily to confirm buy or sell signals. A move above 0.5 indicates a continuous buy signal, and a decline below 0.5 acts as a continuous sell signal. It’s essential to note that some StochRSI calculators multiply the output by 100, providing readings in the range of 0 to 100. In addition, another popular calculation duration for StochRSI is 20 periods.

As a trader, it’s critical to understand that StochRSI can be applied to any time frame for the identification of price movements or market trends.

Stochastic RSI uses RSI as its base. The StochRSI formula is as follows:

Stochastic RSI = (Current RSI − Lowest RSI) / (Highest RSI − Lowest RSI)

As mentioned, traders can apply this formula for different trading periods, including days, hours or even minutes, and every trader should understand how to read the stochastic RSI before applying it to crypto trading.

Stochastic RSI takes RSI as its input and applies the stochastic oscillator formula to arrive at a figure between 0 and 1 for any given time period.

Below is a visual representation of the Stochastic RSI. 

Crypto traders using the stochastic RSI can select any period and analyze the movement of a crypto asset. We’ll take a more in-depth look into the different ways traders use StochRSI in the coming sections.

Stochastic Oscillator vs. Stochastic RSI vs. Relative Strength Index (RSI)

These three technical indicators are used to analyze the price movements of assets, based on their strength and momentum. While they share fundamental similarities, there are some key differences.

A visual example of these technical indicators are as follows: 

How to Use Stochastic RSI for Trading Signals

One of the primary uses of the stochastic RSI is to identify trading signals. Here’s how a trader can use this indicator to interpret the movements of a cryptocurrency.

The chart below visualizes the use of StochRSI on BTCUSDT price movement prediction:

StochRSI measures the value of RSI over the high/low range of a period. When the actual RSI indicator records a low reading below 40, the StochRSI will be close to 0, and vice versa: if the RSI's reading records a high, the StochRSI will be close to a reading of 100.

Example: How to Use Stochastic RSI for Day Trading

Since the stochastic RSI allows traders to identify overbought or oversold conditions, it works as an excellent tool for identifying market momentum. The following is an example.

By using this strategy, traders should pay attention to the centerline (0.5); any movement above 0.5 indicates an uptrend, whereas movement below 0.5 indicates a bearish trend. Traders can place buy triggers as the value goes above 0.5. Similarly, crypto traders can use a short-sell or sell as the oscillator moves below the 0.5 level.

Crypto markets are notorious because of their volatility. Intraday trading in crypto requires a trader to identify any price reversals instantly in order to avoid significant losses. Traders can use the stochastic RSI to identify any such price reversals, and to open or close positions more effectively, due to its sensitivity to price movements. Traders are advised to use 

 as additional indicators when trading on price reversals.

For example, if the StochRSI moves above 0.80, it may imply that an asset is overbought, but it can also indicate a strong uptrend and remain above 0.80 for a prolonged period. On the contrary, if it falls below 0.2, it indicates the beginning of a strong downtrend. Any movement toward 1.0 could be considered a very strong uptrend, and any move toward 0 indicates a very weak trend.

The stochastic RSI indicator has its benefits as well as limitations. Using the stochastic RSI in conjunction with other indicators can help traders create an effective trading strategy. However, it’s not advisable to use it as your sole indicator because of higher volatility of crypto and the distant relationship with current asset prices.

Stochastic RSI: What Is It and How Does It Work?

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