Getting started with cryptocurrency can be very difficult, even for those who are really ambitious. Crypto market unpredictability as a whole might be the main reason behind this conclusion. Crypto markets thrive on that.
You should be familiar with a few terms before entering the entire cryptosphere, which are used very frequently by traders on the market. In this context, weak hands trading is a multifaceted business with many types of traders and strategies. The term weak hands refers to traders who are not very adept at making plans. They don’t have convictions about their strategy, or don’t have the resources to follow through on a process and execute it perfectly. Also, some traders don’t intend to take, or deliver, the underlying asset, and that’s considered weak hands.
An investor or trader with weak hands can’t hold a position or stick to their trading plan for lack of resources, confidence, or ability. As a result, the term can be used in different ways.
In the cryptocurrency and forex markets, the term “weak hands” is usually used negatively, meaning emotional and inexperienced investors. They usually give trading patterns that are predictive and other trading strategies, which market makers and professional investors can use. As for cryptocurrency exchanges, they are online platforms that trade primarily cryptocurrency like Bitcoin, Ethereum, Litecoin, and all other crypto coins. Bitcoin exchanges allow you to buy digital currency with fiat money or to exchange one digital currency for another.
People with weak hands trade compulsively, driven by emotions instead of logic. Whenever the market shows erratic behavior or bad news, they tend to sell their assets. These traders do not believe in the long-term growth of their investments. Price fluctuations can easily shake them down.
Thus, weak-handed traders exhibit predictable trading behavior due to uncertainty, fear, and suspicion, or FUD. It is impossible for them to sustain their assets over time due to their tendency to move into and out of positions at inopportune times.
However, the term has no derogatory connotations in the futures market. A trader who just trades a contract without intending to acquire an underlying asset or close out his position is described as a day trader. Investors are more likely to act like price speculators than investors.
Is It Possible To Predict Weak Hands?
A weak hand will usually buy an asset because of an increase in the price chart, and sell an asset because of an increase in the price chart. It is very critical to maintain consistency on the stock market and the cryptocurrency market. Trades made by weak hands become predictable if the rule of thumb is not followed.
They tend to sell or buy assets quickly based on news, without much judgment. This isn’t a very smart move. Moreover, they tend to follow a set of rules that they have developed for themselves on the market. In this way, their next move is very predictable. A predictable plan for an unpredictable market is not an intelligent move. At any time, they can be shaken by fluctuations in market prices. Due to this, they tend to sell when cryptocurrency prices are low and purchase when they are high.
Your private key should never be shared, especially online. This is the key to Bitcoin wallet security. The public and private keys for cryptocurrencies are two types. Think of your public keys as your crypto addresses – they are shared with everyone. In contrast, private keys should not be shared at all, since they can be used to access your crypto funds.
“Weak hands” are those who see the market as speculators rather than as investors. A speculative investor is more likely to reverse any decision they make flexibly, even when prices move a few points, if they view things through their speculative eyes. The fear of losing money must be affecting a trader who had developed a strategy before investing if such petty things affect their mindset.
An inexperienced trader or investor with weak hands makes questionable trading decisions because he or she is driven by emotion instead of logic.