In our latest Learn 101 livestream session, crypto experts shared insights on the shifting dynamics of the stablecoin ecosystem.

 are making a comeback, but this time, the competition is heating up. While 

 continues to dominate the market, a new wave of 

 is emerging, each with its own proposition. From institutional-backed tokens to 

, the race is on to determine which stablecoin will take the lead. What sets these newcomers apart — and could any of them realistically challenge USDT’s throne?

, we tackle the big question: Newcomers vs. USDT: Who Will Win?

, provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you miss the livestream.

Joining the livestream on Apr 24, 2025, were two distinguished guests: Paz Gonzalez, trader and founder of 

magazine, and Jip Molenaar, full-time trader and co-founder of Tribe Capital. Under the moderation of Sabrina Chua, Crypto Evangelist and Senior Content Strategist at Bybit, this episode takes a deep dive into the shifting dynamics of the stablecoin ecosystem.

Why the world is suddenly crazy about stablecoins

Stablecoins are once again making headlines — but what’s driving this renewed momentum? Several key developments have pushed stablecoins into the mainstream conversation, including Donald Trump’s recent proposal for a 

. According to Paz Gonzalez, these announcements signal a broader shift tied to the weakening influence of the US dollar. In times like these, stablecoins could gain mass adoption, giving governments a way to reassert monetary control through a digital proxy.

Jip Molenaar agrees with Gonzalez, adding that Bitcoin is unlikely to become the world’s primary currency, despite what many once believed. Instead, Molenaar sees Bitcoin’s future role as that of a store of value — 

 — while stablecoins will take on the role of everyday money, used for payments, bill settlements and daily transactions. 

, Molenaar argues, has helped bring digital assets into the political mainstream, making the concept of crypto usage more palatable to the general public than ever before.

Molenaar also shares his personal experience transitioning from euros to USDT, a process he describes as challenging and significant. Living in Europe, switching to a US dollar–pegged stablecoin wasn’t easy — and that’s precisely why he believes most users won’t readily jump to new alternatives. For many, USDT and 

Paz sees Fidelity’s entry into stablecoins as a bullish signal for the industry. As a well-established and trusted financial institution, Fidelity’s involvement could sway skeptics who have traditionally avoided crypto. Its participation brings credibility — and potentially, a new wave of adoption.

He also emphasizes that the legitimacy of any currency, fiat or crypto, depends upon being backed by a clear source of value. Historically, 

. For stablecoins to earn that trust, the same principle applies — they must be transparently backed. Today, more investors recognize that leading stablecoins are supported by reserves, and are subject to increasing regulatory oversight.

However, despite this progress, Molenaar remains cautious. He warns that another event like the 

 is still possible if stablecoins aren’t properly backed and transparently managed. Without clear support mechanisms, he believes trust will erode — and widespread adoption will stall.

USDT currently holds the largest market share among all stablecoins and is the most actively traded. Molenaar attributes this dominance to the convenience and wide acceptance of USDT across trading platforms. He points out that the infrastructure for USDT is already deeply entrenched in the crypto ecosystem, making it far easier to execute trades and move funds. Because of this strong foundation, he believes it will be extremely difficult for any competing stablecoin to unseat USDT.

Gonzalez agrees: while she personally holds some USDC, she says that when people ask her to send a stablecoin, it’s almost always USDT. Even though USDC has made efforts to challenge USDT’s dominance, Gonzalez doesn’t see that happening anytime soon — if ever. She also underscores the fact that stablecoins like USDT aren't meant to be investments in the way Bitcoin or altcoins are. Instead, they serve more practical purposes, facilitating transactions and providing stable on-chain alternatives to fiat.

Molenaar adds that older generations, particularly baby boomers, tend to wait until new markets are validated by trusted institutions before getting involved. With firms like Fidelity now backing crypto through 

 (ETFs) and exploring stablecoin adoption, that validation is underway. Because Fidelity has integrated USDT into its ecosystem, Molenaar believes that conservative investors will naturally gravitate toward it over less familiar alternatives.

Gonzalez also shares her approach to risk management. Rather than going all-in on one asset, she diversifies and experiments cautiously — allocating small amounts to new opportunities. 

, for example, is one method she uses to generate passive income while testing out new protocols or tokens.

When it comes to adoption, Gonzalez sees real-world use cases driving interest in stablecoins. She mentions the new Wyoming stablecoin, which offers local taxpayers a slight reduction on their annual tax bills. While its benefits may currently apply to a small group, she believes this kind of practical utility is crucial. To achieve broader adoption, stablecoins — including smaller, emerging ones — need meaningful use cases tied to local economies. 

Still, for global accessibility and widespread usage, she maintains that a well-established option such as USDT is essential.

Stablecoins and trading — what really matters to traders

Molenaar is all-in on USDT, choosing to avoid the risks that come with lesser-known stablecoins. For him, USDT offers the highest liquidity and the lowest risk, due to its widespread adoption. While he's open to switching if a new, dominant stablecoin emerges, he’s not willing to gamble on smaller or less established options at this time.

Gonzalez adds an important perspective: stablecoins don’t just enable transactions — they also reflect the health and movement of the broader crypto market. Since stablecoins support liquidity within cryptocurrency networks, their flows can signal shifts in underlying asset trends. Traders are beginning to pay more attention to this relationship.

While most stablecoins are backed by USD, some stablecoin creators are now exploring alternative pegs, such as gold. But for Gonzalez, the backing isn't the main concern: usability is. She prioritizes the ease with which a stablecoin can be used for trading. In her view, investors today care more about functionality and integration with platforms than the specific assets backing the coin. 

Molenaar agrees, adding that ease of use often comes down to habit — knowing the ins and outs of how to trade with a particular coin saves time and effort. He also points out that staking stablecoins typically yields higher returns than do traditional bank savings accounts. That’s one reason he keeps minimal funds in banks — in addition to his distrust of the traditional banking system. He prefers to let his funds work for him through stablecoin staking.

Gonzalez also sticks with USDT because of its simplicity and reliability. She takes a cautious, thoughtful approach to her finances, due to her awareness of how hard she works to earn her money. When trading with USDT, she invests time in researching opportunities. Therefore, she believes that having a deep understanding of stablecoins is crucial in order to make smart financial decisions.

Both Molenaar and Gonzalez highlight the importance of using a trusted platform when holding and trading stablecoins. Molenaar uses Bybit because he feels confident his funds are secure there, and Gonzalez echoes this sentiment — rather than spreading her assets across multiple exchanges, she sticks with Bybit for its reliability and trustworthiness.

This episode of Learn 101 offers a thought-provoking look at the battle between emerging stablecoins and the reigning stablecoin leader, USDT. While newer stablecoins may bring niche advantages and localized utility, USDT’s deep liquidity, global reach and entrenched usage continue to give it a clear edge. For now, USDT remains the go-to choice. But as the ecosystem continues to evolve, the race is far from over.

Intermediate

Bybit Learn Livestream Newcomers vs. USDT: Who will win? featured image

EN_2504-T53331_Learn Livestream_Speakers_1600x900_B.png

Learn Live ICYMI: Can the upcoming stablecoins beat USDT?

Bybit Megadrop is a token launch platform that lets users earn free airdrops by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

The crypto world never sleeps — and neither do opportunities to earn. One of the most exciting ways to get in early on promising projects is through token launches, whereby new cryptocurrencies are introduced to the market. Traditionally, early participation comes with barriers: you might need to stake, trade heavily or rely on luck in oversubscribed launchpads.

Bybit Megadrop changes the game by offering a more rewarding and accessible way to earn free tokens before they hit the market — all while growing your savings.

In this article, we’ll explain what Bybit Megadrop is, how it works, the benefits of joining, how to participate and whether it’s the right fit for your crypto strategy.

 is a token launch platform that lets users earn free 

 by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

This new platform integrates Bybit Earn with early-stage 

 projects, giving users exclusive access to rewards before tokens go live on the Bybit Spot market. Think of it as a smarter, more educational and risk-free way to “airdrop farm” — but with real structure and substance.

Bybit Megadrop combines savings, learning and rewards into a unified experience. Here's how the flow works.

1. Subscribe to a Fixed-Term Bybit Savings plan

To participate, users must first subscribe to a Fixed-Term Bybit Savings plan using eligible tokens specified on the event page. These tokens could include MNT, USDT, USDC or BBSOL. This isn't just a gateway to Megadrop — it's also a way to grow your holdings. While your funds are locked for a fixed period, you earn interest through Bybit Earn.

This subscription acts as your entry ticket to Megadrop.

Once you’ve subscribed, you’re entitled to a portion of the airdrop rewards from the featured token’s project. These airdrops are typically distributed before the token is publicly listed on Bybit, giving you early exposure and the potential for upside if the token gains traction post-listing.

The amount of airdrop you receive depends upon your subscription amount, the total amount subscribed by all participants and whether you complete additional side tasks.

Please note that you will need to claim your airdrop rewards manually once the event ends.

3. Complete side tasks for bonus airdrops

To boost your airdrop share, you can complete optional side tasks. These tasks are simple, and are meant to educate users about the project and keep them engaged on the Bybit platform. Examples include:

Completing more tasks will grant you more points, which essentially results in a larger share of the token airdrop pool.

Bybit Megadrop isn’t just another airdrop campaign — it’s a win-win experience for users looking to maximize value with minimal risk.

The best thing about Bybit Megadrop is that when you subscribe to a Fixed-Term Bybit Savings plan, you don’t just earn the plan's regular APR — you also get free airdrop tokens. It's passive income layered with passive rewards.

Taking part in Bybit Megadrop will enable you to obtain tokens before they hit the Spot market, which could offer potential upside if the token rallies post-listing.

The barrier to entry is low, and there’s no need to buy or stake new tokens. You simply use what you already have in savings, and get rewarded on top of your fixed return — with no strings attached.

Looking to upsize your earnings? Simply complete more side tasks to earn more points. This way, you’ll be able to increase your chance of getting more tokens airdropped to your account.

Now that you have a better understanding of what Bybit Megadrop is, let’s explore how you can get started. If you don’t already have a Bybit account, you’ll need to create one. You can also check out our 

: Log in to your Bybit account and hover your cursor over the 

Select the event you would like to participate in. You will then need to subscribe to a Fixed-Term Savings plan on Bybit Earn to accumulate points. The eligible plans will be listed under the corresponding project on the Megadrop page. 

You may also complete tasks with point multipliers to earn points faster.

Once the event ends, the airdrop you receive will be based on your share of points earned in each pool.

Bybit Megadrop is designed for all types of crypto users, from beginners to veterans, and offers a compelling, low-risk way to access new token launches.

If you're someone who’s already using Bybit Earn, then Bybit Megadrop is a natural next step. It enhances the value of your fixed-term savings by layering on free token airdrops from promising web3 projects. You get to earn both APR and tokens, without having to take on additional investment risk.

Even if you’re new to Bybit, Megadrop makes participating in token launches easier and more rewarding. There’s no need to buy new or volatile assets — just deposit what you already have into a Fixed-Term Savings plan. That’s it — and you’re now eligible for airdrops.

For users who enjoy completing tasks or learning about new projects, the optional side missions are a fun way to earn additional tokens while becoming more familiar with the web3 ecosystem. If you're a retail user looking to stretch your capital, these tasks give you a chance to unlock a much larger share of rewards.

In short, if you're looking for a safe, flexible and engaging way to access new tokens early (without spending more or risking your funds), then you’ll absolutely want to consider joining Bybit Megadrop.

Bybit Megadrop combines the best of both worlds: steady earnings from savings and exciting token rewards from new projects. It’s a win for long-term holders, risk-averse users and web3 explorers alike.

Ready to try it? Subscribe, complete a few tasks and claim your share of the next big token — before anyone else!

Beginner

Bybit Megadrop.png

Bybit Megadrop: A smarter way to earn airdrops from new tokens

Tezos’ Rio upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). 

The S&P 500 futures rose after news of US-China trade talks, rebounding from Tuesday’s 0.77% decline as investors await the Fed’s rate decision and Powell’s guidance. Gold climbed above $3,400, buoyed by a weaker US dollar and risk-off sentiment, and is technically bullish with momentum targeting a retest of the $3,500 record high ahead of the Fed’s policy decision. The Coindesk Indices, which tracks the broader crypto market, rose 1.64%, with Bitcoin up 0.69% and Ether down 1.87%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is KAITO, which surged 39.2% after Kaito AI announced $71M in distributed rewards and unveiled upcoming products.

Kaito (KAITO), founded in 2022, is a $1,099/month AI-powered crypto search engine that aggregates data from web3 sources like Twitter, Discord, and forums, using advanced AI to deliver context-rich, sentiment-filtered insights. Kaito AI has 

 over $71M in rewards to users within 5 months of launching Yaps, excluding the upcoming $KAITO airdrop, with more products like Kaito Earn, Connect v2, and Capital Launchpad on the way.

Check out the latest prices, charts, and data of 

 upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). It reduces staking cycle times from 3 days to 1, tightens baker inactivity rules for better network resili`ence, and strengthens Tezos’ position for L2 scalability and user experience improvements.

Yesterday, BTC spot ETFs saw total outflows of $122.4M, with $89.9M from GBTC and $32.5M from non-GBTC funds.

, a decentralized bandwidth marketplace, launched its node for users to earn points and qualify for a future airdrop by sharing unused internet. Users can run a free node, earn 1 point every 10 minutes, and boost earnings via quests and referral codes.

4.png

Tezos Rio upgrade boosts staking speed and L2 incentives with improved network resilience

In this article, we’ll look into Bybit Pay, how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a next-generation payment solution that enables users to send and receive crypto or fiat with just a few taps via QR code or internal transfer. Whether you're settling bills, splitting payments with friends or running a global business, Bybit Pay simplifies cross-border transactions within a secure and intuitive environment.

In this article, we’ll walk you through Bybit Pay, show you how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a powerful payment service designed to connect your crypto wallet to real-world financial needs. Whether you're sending money to friends or making payments to merchants, Bybit Pay allows seamless transactions conducted in both crypto and fiat — all from within the Bybit platform.

Its mission is to bridge the gap between digital assets and traditional finance by enabling users to spend their crypto effortlessly, just like they do with cash. With support for currencies like BTC, ETH and USDT (and even fiat such as BRL), Bybit Pay turns your crypto into a practical tool for everyday payments.

Bybit Pay makes it easier than ever to use your crypto. Whether you're paying online, transferring funds to a friend or scanning a QR code in-store, Bybit Pay supports seamless payments in both crypto and fiat funds.

Bybit Pay simplifies spending both locally and globally.

Bybit Pay operates through two main methods: QR code payments and internal transfers. Users can scan a QR code to pay merchants or friends, or send funds directly using a phone number, email or Bybit UID. It supports both crypto and fiat, with seamless access via the Bybit app or website.

: While the Bybit Card functions like a debit card for in-store purchases, Bybit Pay enables direct wallet-to-wallet transfers and merchant payments, without any need for physical hardware. It’s faster, flexible and perfect for global digital transactions.

How to send crypto and fiat with Bybit Pay

Bybit Pay makes it easy to send crypto or fiat to other users or merchants. You can pay by scanning a QR code, or via internal transfer using a phone number, email or UID.

2. Choose your payment method, and enter the recipient’s email, phone number or Bybit UID.

Enter the amount you wish to send. Tap on the 

 to convert from fiat to crypto, if needed. Add a note (optional), avoiding special characters.

5. Review the details, and confirm your payment after completing two-factor authentication (2FA).

Once your funds are sent, your payment history is viewable at the bottom of the Bybit Pay screen or by tapping on the 

Bybit Pay makes sending crypto as easy as sending a message.

How to receive crypto and fiat on Bybit Pay

Receiving payments on Bybit Pay is simple and flexible. Users can receive crypto or fiat via either internal transfer or QR code, depending upon the sender’s preference.

The sender can use any of these details to transfer funds directly from their Bybit Pay interface.

Bybit Pay makes receiving crypto fast, flexible and borderless. The following is a step-by-step guide for requesting a payment using a personalized QR code — right from the Bybit app.

. This opens your personalized payment interface.

 to enter a fiat amount, and the amount will automatically convert to crypto.

: Your QR code updates in real time in order to reflect the specified details. Simply show it on-screen or use the 

: After the sender has completed the transfer, go to 

 to confirm receipt and track incoming funds.

Bybit Pay bridges crypto and traditional finance, offering seamless, secure and instant payments — all from one place. Whether you're sending or receiving crypto, or spending it globally, it’s never been easier to do. 

 today to experience secure, borderless crypto and fiat payments — right from your app or browser.

Bybit Pay send & receive.png

How to send and receive payment using Bybit Pay

Trading

Indicators

Explainers

Relative strength index (RSI) indicator is one of the most popular technical indicator. Here's how you can to apply it strategically when trading crypto.

Picture yourself as a trader navigating the vast ocean of financial markets, seeking valuable insights to help you make informed decisions. One such tool that can assist you on your journey is the Relative Strength Index (RSI). This powerful momentum indicator can help you identify overbought and oversold conditions, spot trend reversals, and enhance your trading strategy. So, without further ado, let’s embark on a voyage to understand the intricacies of RSI and answer the question: what is RSI, and how can it benefit your trading endeavors?

Understanding the Relative Strength Index (RSI)

Within the scope of technical analysis, the Relative Strength Index (RSI) stands prominent. It is a momentum indicator that measures the strength of price movements, helping traders identify:

J. Welles Wilder developed the RSI indicator in 1978 for technical analysis across differing financial markets. It operates by comparing recent gains and losses in an asset’s price, providing an oscillator value between 0 and 100 to indicate market conditions. In essence, the RSI assists traders in gauging the momentum of an asset and recognizing potential buy and sell signals.

J. Welles Wilder, an American mechanical engineer and real estate developer, introduced the Relative Strength Index (RSI) in his groundbreaking 1978 book, New Concepts in Technical Trading Systems. Wilder’s intention was to provide a means of technical analysis for various financial markets, including stocks, commodities, and currencies. His innovative contributions to the field of technical analysis also include other popular tools such as:

At the core of the RSI is the calculation of the relative strength of an asset’s price. This is accomplished by examining the average gains and losses over a period of time, typically 14 periods, and then using the formula to divide the average gain by the average loss. As a result, the RSI value ranges from 0 to 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions.

The influence of the time frame on the RSI value is not to be overlooked. A shorter time frame will generate a more responsive and variable RSI, while a longer time frame will produce a more consistent and less sensitive RSI. By adjusting the time frame and RSI levels, traders can better adapt their strategies to the prevailing market conditions and improve their overall trading performance.

RSI Calculation: Breaking Down the Formula

The RSI formula consists of two key components: the Relative Strength (RS) and the final RSI value. RS is calculated by dividing the average gain by the average loss, while the RSI value is determined using the formula RSI = 100 - (100 / (1 + RS)).

Traders can uncover significant details about the momentum and strength of an asset’s price by dissecting and comprehending the RSI formula.

The average gains and losses in the RSI calculation are essential in determining the Relative Strength (RS) of an asset. By dividing the average gain by the average loss, traders can assess the strength or weakness of an asset’s price. In the RSI formula, the average gain is calculated by summing the gains over a specified period of time and dividing the result by the number of periods, with the default time period being 14 periods.

It is important to note that the initial average gain and average loss are calculated differently than subsequent averages. The initial averages are determined by summing the gains or losses over the past 14 periods and dividing by 14, while subsequent averages use a smoothing formula. By understanding the importance of average gains and losses in the RSI calculation, traders can better interpret the indicator’s signals and make more informed decisions.

To better illustrate the RSI calculation, let’s consider a specific asset. Here are the steps to calculate the RSI:

Once the RSI value is calculated, it can be plotted on a price chart to visualize the indicator’s movements in relation to the asset’s price. By interpreting the RSI values, traders can identify overbought and oversold conditions in the market, as well as recognize potential trend reversals and price corrections.

Traders can enhance their decision-making abilities in the financial markets by incorporating the RSI calculation with other technical indicators.

For traders aiming to seize market opportunities, interpreting RSI signals is a necessary skill. One key aspect of RSI interpretation is identifying overbought and oversold levels. When the RSI value surpasses 70, it implies that the asset is overbought, potentially indicating a reversal or a selloff. Conversely, when the RSI value drops below 30, it implies that the asset is oversold, potentially indicating a rally or a buying opportunity.

Another crucial aspect of RSI interpretation is recognizing bullish and bearish divergences. A bullish divergence suggests that an underlying asset may be about to move upwards. This is indicated when the RSI shows an oversold reading followed by a higher low, accompanied with declining lows in the price. The RSI displays an overbought reading followed by a lower high when a bearish divergence occurs. This is accompanied by higher highs in the price. Understanding these divergences allows traders to gain significant insights into the market’s price momentum and make decisions with a higher level of information.

In the RSI, overbought and oversold levels act as key indicators for possible trend reversals or price adjustments. An RSI value above 70 suggests that the asset is overbought, indicating that the price may be due for a decline. In contrast, an RSI value below 30 implies that the asset is oversold, suggesting that the price may be due for an increase. These thresholds of 70 and 30 are frequently used to determine overbought and oversold conditions.

It is important to note that RSI values can remain in overbought or oversold territory for extended periods during strong trends. In such cases, it is crucial for traders to use additional analysis or incorporate other technical indicators to confirm the signals provided by the RSI. By doing so, traders can minimize false signals and enhance the accuracy of their trading decisions.

RSI Divergence: Bullish and Bearish Scenarios

RSI divergence occurs when the price and RSI oscillator move in opposite directions, indicating a potential change in market momentum. When a bullish divergence occurs, for instance, the price reaches a new low while the RSI value does not, typically interpreted as a buy signal. Conversely, bearish divergence is observed when the price reaches a new high while the RSI reaches a new low, signaling that the price momentum has decreased and a potential reversal or weakening of the upward trend is imminent.

Understanding the implications of RSI divergence allows traders to better predict possible shifts in market momentum and adapt their strategies accordingly. Combining RSI divergence with other technical indicators can further enhance the accuracy of trading signals and improve overall trading performance.

Combining RSI with Other Technical Indicators

When used alongside technical indicators like the Moving Average Convergence Divergence (MACD) and moving averages, the RSI can be a highly beneficial tool. By utilizing multiple indicators, traders can gain a more comprehensive view of the market, improve the accuracy of their trading signals, and minimize false signals.

The following sections will illustrate how integrating the RSI with MACD and moving averages can bolster trading strategies.

The MACD is an indicator used to measure a security’s momentum and trend. It shows the relationship between two moving averages of the security’s price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. This is then used to identify changes in the momentum of a security’s price. Traders use the MACD to assess the state of price action and recognize potential buy and sell signals, making it a widely used tool in technical analysis.

Utilizing the RSI and MACD in tandem can bolster a trading strategy by furnishing additional signals and verifying possible trade setups. The RSI assists in recognizing overbought and oversold conditions, while the MACD conveys the intensity and direction of the trend. By using both indicators in combination, traders can acquire a more comprehensive view of the market and make more informed trading decisions.

RSI and Moving Averages: Spotting Trend Reversals

Moving averages are a commonly utilized technical indicator in trading, helping to identify price trends by filtering out short-term fluctuations. The most popular type of moving average is the simple moving average (SMA), which calculates the average closing price of a security over a set period of time. Traders rely on moving averages to ascertain the direction of a trend and recognize potential buying or selling opportunities.

When the RSI is combined with moving averages, traders can identify trend reversals and confirm RSI signals, enhancing their overall trading strategy. For example, when the RSI indicates an overbought or oversold condition and the price crosses above or below the moving average, it can indicate a potential trend reversal. By combining the two indicators, traders can make more informed decisions and refine their trading strategies.

Despite the RSI’s ability to offer significant insights into price momentum and market conditions, acknowledging its limitations and challenges is important. One of the primary drawbacks of using RSI is the possibility of generating false signals. This can occur when the indicator suggests a potential trend reversal or price correction, but the market continues to move in the current direction. To mitigate this issue, traders can use trend-conforming signals and incorporate other technical indicators to confirm RSI signals.

Another challenge associated with using RSI is the potential for extended overbought or oversold conditions. In strong trends, RSI values can remain in overbought or oversold territory for prolonged periods, leading traders to prematurely enter or exit trades. To address this issue, traders can adjust their RSI levels to better fit the prevailing trend or use additional analysis to confirm the signals provided by the RSI.

Lastly, it is crucial to conduct further analysis when using RSI to make informed trading decisions. RSI should not be used as a standalone indicator, as relying solely on RSI can result in a limited understanding of the market and increased risk. By incorporating other technical indicators and conducting thorough research, traders can enhance their trading strategies and make more informed decisions.

Consider the following practical tips to optimize the benefits of using RSI in your trading. First, adapt your RSI levels to reflect the prevailing market trends. By configuring the RSI levels to correspond with the current trend, you can better pinpoint potential entry and exit points. For instance, if the trend is bullish, set your RSI levels higher than usual to avoid premature sell signals.

Another useful approach is to utilize trend-conforming signals, focusing on bullish signals when the price is in an uptrend or a bullish trend, and bearish signals when the price is in a downtrend or a bearish trend. By understanding bullish and bearish movements, this can help prevent false alarms generated by RSI in trending markets and improve the accuracy of your trading signals.

Lastly, incorporate risk management strategies into your trading to minimize potential losses. Set a maximum percentage of your trading portfolio that should not be exceeded in any single trade (e.g., 1% or 2%). This can help protect your capital and ensure a more sustainable trading approach in the long run.

The application of RSI in crypto trading bears many similarities to its use in traditional financial markets. Like stocks and commodities, RSI can be used to evaluate whether a crypto’s price is overbought or oversold, providing valuable insights into potential buying or selling opportunities. However, the crypto market is a relatively novel market that operates differently from traditional equity markets, presenting unique challenges for traders.

One key difference between crypto trading with RSI and traditional financial markets is the increased volatility often observed in the crypto market. This can result in false signals and inconsistency in RSI signals, especially during periods of rapid price fluctuations. To overcome this challenge, crypto traders can adjust their RSI levels to better fit the prevailing market conditions or use additional analysis to confirm the signals provided by the RSI.

Despite these differences, many concepts and techniques used in traditional financial markets can be applied to crypto trading. For instance, risk management strategies such as stop-loss orders and position-sizing can be employed to reduce risk and protect capital. By understanding the unique challenges of crypto trading and adapting their RSI strategies accordingly, traders can enhance their performance and navigate the volatile world of cryptocurrencies with confidence.

In conclusion, the Relative Strength Index (RSI) is a powerful momentum indicator that can provide valuable insights into price momentum and market conditions. By understanding the intricacies of RSI, traders can identify overbought and oversold conditions, spot trend reversals, and enhance their trading strategies. Combining RSI with other technical indicators, such as MACD and moving averages, can further improve trading accuracy and reduce false signals. Although RSI has its limitations and challenges, incorporating practical tips and risk management strategies can help traders navigate the ever-evolving world of financial markets and achieve trading success. #TheCryptoArk #Bybit

The Relative Strength Index (RSI) is a technical analysis tool created by James Welles Wilder, Jr. in 1978 that measures momentum and evaluates if an asset's price is overvalued or undervalued. It oscillates between 0 and 100, with values above 70 indicating it is overbought and values below 30 indicating it is oversold.

When using the Relative Strength Index (RSI), a low RSI level below 30 generally indicates an oversold or undervalued condition, creating a potential buy signal. Meanwhile, a high RSI level above 70 suggests that the stock is overbought and could generate a potential sell signal.

For optimal results, RSI should be used with a timeframe of 2 to 6 periods. This allows traders to tailor the indicator to their specific short or long-term positions.

What are the key levels to watch for in RSI?

RSI levels above 70 indicate overbought conditions, while levels below 30 suggest potential reversals or corrections. These are the key levels to watch for in RSI.

How can RSI help in identifying trend reversals?

RSI can be used to identify potential trend reversals by detecting bullish and bearish divergences. When the price reaches a new low while the RSI value does not, a bullish divergence is indicated; conversely, when the price reaches a new high but the RSI reaches a new low, a bearish divergence is indicated.

What Is RSI? The Ultimate Guide to Understanding the Relative Strength Index

Compete for 2,500 USDT Every Week

Earn Points by Completing Tasks

Event Rules

Register now and get 10 points

Write/Reply Comments (0/5)

Publish an Article (0/5)

Share an Article on Social Media (0/5)

Like an Article (0/5)

Read an Article (0/5)

Weekly Leaderboard