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How to Avoid Losing Money When Crypto Exchanges Face Outages amid Flash Crash

UTC by Julia Sakovich · 4 min read
How to Avoid Losing Money When Crypto Exchanges Face Outages amid Flash Crash
Photo: CoinPanel

Unlike other service providers, CoinPanel has implemented robust backup utilities to mitigate these exchange-derived connectivity issues.

Crypto markets are prone to experience periods of massive volatility as new developments and speculation take place, leading to extreme price swings. Digital assets have had a history of being extremely unpredictable and volatile.

Since the crypto market can make unexpected big moves, it is essential to safeguard and protect your trades, to be able to set stop-losses and adjust your positions quickly. Without a proper risk management strategy in place, you could end up with big losses in a matter of minutes.

Exchanges Faced Difficulties amid Volatility

Bitcoin price witnessed its value drop by over 30% on May 19, 2021. The volatility in the crypto market was so intense it caused outages in some exchanges, including Coinbase and Binance.US.

On September 7, multiple centralized cryptocurrency exchanges also experienced connectivity issues in light of the day’s trading volatility. Users globally were affected, unable to access their exchange platforms, manage their working orders or reconcile executed trades.

CoinPanel, an API execution service, encountered zero downtime over this period allowing users to successfully manage their positions in volatile market periods on the affected exchanges. Unlike other service providers, CoinPanel has implemented robust backup utilities to mitigate these exchange-derived connectivity issues.

Volatility Is a Double-Edged Sword

While volatility has its drawbacks, massive price swings could be beneficial to crypto traders. When billionaire entrepreneur Elon Musk revealed that his company Tesla acquired $1.5 billion in Bitcoin (BTC), the world’s largest cryptocurrency surged by a whopping 20.33%.

The cryptocurrency market runs 24 hours a day, 7 days a week, which means that traders can have unlimited opportunities to benefit from volatility and intraday swings.

The emotional aspect of trading in an extremely volatile market may be hard to handle for traders, especially beginners. When prices go up, investors experience euphoria but when you see your portfolio shrink, you’d probably start to panic.

How to Properly Manage Your Trading Risks

For many, the current risk management system on cryptocurrency exchanges would be to set either a take-profit or a stop-loss order with the available balance. Trading on the exchange would block out your balance after either one of the orders has been set. This could be a huge risk when the market moves unfavorably.

To mitigate these risks, it is essential to find a solution that would allow you to set both orders simultaneously, one that will get you out of a losing position, but at the same time, guarantee to make some gains if the crypto asset surges.

To be able to set stop-loss and take-profit orders simultaneously without having your balance blocked, CoinPanel, a trading automation platform would be the best option.

Making Your Crypto Work for You in a Volatile Market

While cryptocurrency trading allows you to be able to capture opportunities around the clock, trading automation platform CoinPanel could allow you to set exit orders before your entry is even executed, through its native Full Trade feature.

On crypto exchanges, which would only allow you to set your exits after your entry orders have been filled means that you will constantly have to continually check and monitor your trades. With CoinPanel’s Full Trade solution, simply set it and come back to it later because the platform will automatically set your trades accordingly.

CoinPanel’s trading automation platform enables faster execution for trades, which is essential for successful trade outcomes. The all-in-one platform allows you to respond quickly to a volatile market, which allows you to make their crypto work for you without having to execute trades manually.

Simply by linking your crypto exchange API key with CoinPanel, you can start trading effortlessly in a secure environment. Built on top of world-class infrastructure in Sweden, CoinPanel ensures your data is encrypted and secure on Google Data Centres.

If you plan to trade cryptocurrencies, it is important to be equipped with advanced tools provided by an all-in-one platform, which allows you to be able to trade crypto effortlessly and check your portfolio at ease.

CoinPanel offers a variety of tools to enable traders to reap the opportunities of a volatile market, all while managing the risks associated with the ever-growing crypto market.

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Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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