Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

At the start of the week, Bitcoin showed signs of decoupling from US equities. However, US president Trump's positive remarks about the US-China trade war (which had included a 145% tariff on Chinese goods) triggered a relief rally across markets. As a result, BTC has resumed moving up with US equities. 

This rally has led to a rise in short-tenor implied volatility and a recovery in BTC’s put-call skew, indicating that traders are seeking upside exposure.

Please check out the report’s highlights.

Perp open interest rises across the board

Perpetual open interest increased significantly this week across various tokens, especially ETH. Perpetual trading volumes also rose. Notably, Ap 7, 2025 recorded the highest trade volume of the month, following Trump's comment, "Forget markets for a second, we have all the advantages."

BTC option open interest shows a mixed picture; put-call skew in short tenor sends positive signals

President Trump’s recent willingness to negotiate a trade deal with China’s President Xi triggered a relief rally across asset classes, including crypto. Bitcoin had already risen 7% since Apr 21, 2025, prior to Trump's comments. Despite this rally, open interest in puts has outpaced calls, with options volume remaining relatively balanced. 

It's unclear if the demand for puts reflects a hedge against downside risks, or a bet against the upward movement. Meanwhile, perpetual funding rates are providing limited insight into sentiment. However, the recovery of the put-call skew at short tenors indicates that traders are seeking upside exposure to the rally — and are willing to pay for it.

ETH unexpectedly outperforms BTC in this relief rally

ETH's response to the recent crypto market recovery has diverged from previous trends: it outperformed BTC in spot prices, a rarity in past rallies, and open interest in calls exceeds that in puts — opposite to BTC's trend. In addition, ETH call open interest is nearly double that of puts, with calls dominating options volumes. This suggests traders anticipate ETH will reduce its significant underperformance against both BTC and other “ETH killers” like SUI and SOL. Additionally, the spot rally has led to another term structure inversion for ETH.

Advanced

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Bybit X Block Scholes crypto derivatives analytics report (Apr 24, 2025): Put-call skew recovers at short tenors, showing reviving sentiment

Explore all the hottest Bybit events happening during the week of TOKEN2049 Dubai in this article.

It’s that time of year again — TOKEN2049 Dubai is back, and the city is buzzing with excitement. As one of the most anticipated events on the crypto calendar, it’s not just about the main conference; it’s about everything happening around it, too. From side events and workshops to exclusive mixers and demo days, Bybit is showing up in full force this year. Here's your inside look at what to expect during this action-packed week.

The heart of TOKEN2049 Week, TOKEN2049 Dubai promises two full days of future-facing discussions and innovation in the world of crypto. At the center of it all is Bybit’s immersive booth experience, built on the theme 

. It’s not just a theme — it’s a vibe. Picture claw machines, 

If you’re heading to TOKEN2049 Dubai, be sure to drop by the Bybit booth (located at P33) and chat with our extraordinary Bybit team! And don’t miss your chance to grab a gacha token by scanning our QR code with Bybit Pay. You could walk away with exclusive Bybit merch! 

DMCC x VARA: Crypto regulations and business growth

Policy meets progress at this exclusive evening event co-hosted by DMCC and VARA. This gathering brings together regulators and industry leaders for an open discussion on the future of digital asset compliance and business growth in the region.

You can expect sharp insights, candid perspectives and forward-thinking dialogue about what it really takes to scale a crypto business in a regulated environment. If you care about the future of web3 in the UAE, this is one event to mark on your calendar.

Bybit After Hours: Exclusive Insights & Networking 

 is a private cocktail evening for top-tier traders and long-time supporters of Bybit. This event is equal parts networking, knowledge sharing and celebration.

 to strategic conversations with the Bybit team, this night is tailored to those who trade big and think bigger. With an invite-only guest list, it’s set to be one of the most exclusive experiences of the week.

The Crypto Hub x Bybit Crypto Ark Demo Day

 is all about bringing hands-on energy to the web3 scene. Hosted at the Crypto Ark inside Bybit’s office, this event welcomes founders, devs and crypto creatives for a casual evening of product showcases, idea exchange and light networking.

While Bybit provides the space, the real spotlight is on the community — those shaping the next wave of innovation in web3.

 from across the CIS region are gathering for a deep dive into the tools, tips and strategies that drive growth at Bybit. This meetup goes beyond surface-level sharing — expect actionable workshops covering our Bybit Affiliate program and affiliate best practices.

It’s also a chance to hear directly from Bybit product leads and regional managers, share success stories and walk away with fresh ideas to maximize conversions. 

Wunderbit x Bybit: “Hey, Trading Bot, where is my profit?”

 are here to stay — and this event is going deep into what makes them tick. Co-hosted by Wunderbit and Bybit, the evening workshop blends honest stories from real traders with expert insights on how to avoid common automation pitfalls.

From bot setups that work to the ones that quietly drain your profits, this is your chance to ask the tough questions, hear unfiltered answers — and maybe rethink how you’re running your own bot strategy.

 (RWAs) are taking center stage at the RWA Gulf Summit, a high-powered event co-hosted by Qatar National Bank, Commercial Bank International and DMZ Finance. This summit brings together bank leaders, wealth funds, participants in DIFC, institutional investors and industry pioneers to explore the evolution of tokenized finance in the Middle East and beyond.

Bybit’s Head of Financial Products Jerry Li will take the stage to discuss how 

 (CEXs) can harness RWAs for enhanced yield and 

Dubai's Pinnacle Mixer: Mantle, Mirana, Bybit and Ethena

High above the city, this mixer brings together some of the biggest names in web3 — Mantle, Mirana, Bybit and Ethena. Expect an unforgettable evening of casual chats, cross-chain connections and cocktails with the minds behind some of today’s most innovative projects.

This private event is all about experiencing Bybit Pay in action. See interactive demos, grab a sneak peek at upcoming partnerships and network over bites and drinks. It’s a rare behind-the-scenes look at the way Bybit is shaping the future of crypto payments. 

Wrapping up the week is the Bybit Institutional Symposium — a full-day event dedicated to aligning strategies with institutional clients and forging new collaborations. From macro views to product deep-dives, this conference is built to spark big conversations among serious players.

The day concludes with a gala dinner, a fitting finale to a week in which ideas, connections and innovation have taken center stage.

Intermediate

Bybit Learn Highlights What to Expect at Bybit

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Highlights: What to expect at Bybit (Apr 28–May 2, 2025)

Balance (EPT) is revolutionizing web3 gaming with evolving AI companions, blending blockchain, strategy, and intelligent gameplay in one powerful platform.

Artificial intelligence (AI) agents are a key growth area within the blockchain industry. Projects like Artificial Superintelligence Alliance (FET), 

 (AI16Z) and countless others have been essential components driving the overall crypto market. As of April 2025, the CoinGecko portal lists more than 500 cryptocurrencies within its category of AI Agents. These intelligent assistants are now helping individuals and businesses analyze markets, create textual and visual content, automate work processes and trade profitably.

There's a further area where AI agents on the blockchain are flourishing: the world of 

 gaming. In this sphere, bots and agents based on AI algorithms are helping users develop the best in-game strategies, succeed in the competitive world of play-to-earn (P2E) and overcome key challenges in complex gameplay.

Balance (EPT) is a blockchain gaming project that takes the use of 

 to a completely new level. The creation of the team at the world’s largest social gaming platform, E-Pal, Balance offers players AI agents that can aid them in the in-game environment and serve as their personal companions. Based on a multi-layer architecture, the platform offers some of the most cutting-edge use cases for gaming-oriented AI agents.

 (EPT) is a web3 gaming platform that allows players to easily create, own and use AI companions within the blockchain games it supports.

 Balance supports a variety of first-party (internally developed) and third-party web3 games. You can deploy your AI gaming companions and they’ll act as your assistants, friends or co-players within Balance games.

Using Balance.fun, the platform’s primary web interface, you can create your AI agents and specify various details, such as appearance, personality and functions.

Balance isn’t just another obscure crypto gaming platform. The origins of the project date back to 2020, when the E-Pal social gaming provider was launched by four young California-based technology entrepreneurs — Brian Xiong, Tung Pham, Yuzhe Norris Wang and Yuanzhe Li. E-Pal quickly became a leading force in the newly emerging social gaming field, helping players worldwide find gaming companions. By early 2024, E-Pal had become the world’s largest gaming companion platform, boasting 4.2 million users and 450,000 Epals (gaming companions).

In February 2024, the E-Pal team focused its efforts on 

 and AI technologies, starting the development work on the Balance gaming platform. In September of the same year, Balance went live.

Per the project’s documentation, the platform operates on its own chain, Balance Chain, with 

 (AA) technology used for cross-chain communication. The fungible and 

 (NFTs) held by user accounts are based on the 

A key part of the Balance ecosystem is Key Nodes — purchasable 

 that help with the processing, storage and distribution of data required in the resource-intensive environment of web3 gaming. Some applied instances are the management of real-time leaderboards and the automatic distribution of loot and in-game currency. These nodes can also support the computational requirements of training AI models. As a reward for their work in supporting the platform’s operations, Key Nodes receive a wide range of rewards and benefits, including distributions of EPT tokens, the platform’s native cryptocurrency.

As the ecosystem develops, Key Nodes are envisioned to be involved in governance, 

 launch in September 2024, Balance introduced its Points System, designed to reward early contributors to the platform. During the campaign run in September, users could earn points by completing various specified tasks in various activities, such as joining the project’s social media pages or commenting and reposting.

The 400 users with the best performance in the Points System earned a whitelist spot to receive Pioneer Badge NFTs — distinct tokens that provide owners with early access to games, future campaigns, airdrops and beta testing opportunities. Pioneer Badge NFT holders can also enjoy other benefits, such as premium NFTs and voting rights on the Balance platform.

Balance’s platform provides a set of tools to create and use intelligent companions for Balance-based games. You can design your AI companions by specifying their key traits and behaviors through custom prompts and strategies. The AI agents on Balance can assist you in battles, gaming contests, learning, routine task execution and interactive entertainment.

Balance’s platform is made up of five key layers, each one serving a specific purpose in supporting its user and developer communities. At the top of the architectural stack is the application layer, which acts as the main interface for users to interact with human and AI companions and the wider Balance community.

The application layer also contains the AI Battle Reporting System, which is designed to give users feedback and analysis tools on their performance in the platform’s gaming ecosystem. AI technology is leveraged here to provide personalized analytics and performance improvement recommendations.

A range of NFTs are also part of the layer. These include in-game asset NFTs, as well as 

 (SBTs) that serve as summaries of the holder’s achievements.

The platform layer hosts the various games within the Balance gaming universe. These include both internal games and third-party games that have partnered with Balance. The key concept uniting all of the games is the active integration of AI companions and AI players, making the platform a unique environment in which humans and AI agents play, interact and compete.

The platform layer also features an AI-driven NFT launchpad that offers a rich tool set for creating personalized NFTs for games and applications. These NFTs can be traded on Balance's NFT marketplace, which is also an integral part of the platform layer.

The protocol layer includes a trio of critical protocols — the Fans Protocol, Epal Fan Token (FT) Exchange Protocol and Asset Protocol. The Fans Protocol lets players launch and manage their Fan Tokens, creating opportunities for influencers and community builders to tokenize their efforts and launch high-potential crypto assets. Meanwhile, the Epal FT Exchange Protocol facilitates the management of (and trade in) Fan Tokens.

The third protocol, Asset, is used for the comprehensive management of a wide range of digital assets on Balance, providing easy-to-use tools for asset creation and trading.

The token layer is designed for core operations involving the platform’s native EPT token. This layer supports the use of EPT for in-game purchases, access to services and AI companions, Fan Token minting and trading, in addition to other functionalities.

This is the underlying infrastructural layer that powers the platform’s operational mechanism. It can be described as Balance's operating system, and is made up of several critical components: the node system, the Balance 

, the Balance Chain network and the platform's unique ID system.

The node system provides the computational and storage resources to power games and other functionality on Balance. In addition, the system acts as a key connecting medium between Balance Chain and the AA functionality that lets the platform enjoy cross-chain capabilities.

The Balance stablecoin, also part of the infra layer, is designed to reduce volatility and bring rate stability to the platform's gaming ecosystem. The Balance stablecoin system helps players engage in asset trading without the fear of wild market fluctuations, an important consideration in the 

Designed to support multiple chains, Balance Chain operates based on dynamic protocol adaptation, automatically selecting the optimal blockchain platform according to user preferences and needs. This dynamic adaptability is designed to reduce costs, improve operational speed and enhance overall security for users.

The final major component of the Balance infrastructure layer, the Balance ID system, is a unified and secure user authentication and identity management solution. To be introduced later in 2025, the ID system will let users access all services and games within the Balance ecosystem via a single set of cross-platform decentralized credentials. In addition to human players, also AI companions will have their unique IDs.

EPT is the native cryptocurrency of Balance. Although the platform has been operational since 2024, the EPT token was just launched on Apr 21, 2025, with a total and maximum supply of 10 billion. It was issued on two major blockchains — Ethereum and BNB Chain. EPT has a wide range of functional use cases on the platform, including the following:

The EPT token's supply allocation is per the chart below.

 as a swap pair with USDT, and through the exchange's 

 based on USDT. You can also take advantage of Bybit’s campaign dedicated to the token to grab a share of the 

Under the terms of the event, new users can earn EPT rewards by accumulating a deposit volume of at least 3,000 EPT, or by depositing at least 100 USDT and trading 100 USDT worth of EPT via their first spot trade with Bybit. Meanwhile, existing users can qualify for rewards by trading at least 500 USDT worth of EPT on Spot. The event is valid through May 5, 2025, 9AM UTC.

As of Apr 25, 2025, the EPT token has been on the market for only four days, and is trading at $0.0117, which is 26.4% lower than its ATH of $0.01708 on Apr 21, 2025, and 11.4% higher than its ATL of $0.01129 on Apr 22, 2025.

Long-term price forecasts for EPT are mostly bullish. DigitalCoinPrice 

 of $0.0412 in 2027 and $0.0615 in 2030, whilePricePrediction 

These and other emerging long-term forecasts for the token don't constitute investment advice. Given EPT's extremely short history on the market so far, 

 on the token's future prospects, carefully assess market fluctuations within the crypto gaming niche and consider all other relevant factors before investing in it or any other cryptocurrency.

Capturing emerging market trends and sensing the broader market conditions, the team at E-Pal recognized the tremendous potential of gaming companions back in 2020. Four years later, E-Pal realized that the new market dynamics in gaming called for something even more innovative — the use of AI companions, in addition to fellow humans. The resulting product, the Balance platform, is now racing to stake the claim to the best web3 gaming environment supported by AI agents.

The platform's unique features — cross-chain functionality supported by an AA mechanism, a dynamic exchange system that selects the best network for users' transactions and, most importantly, intelligent AI companions — can certainly help establish Balance as a leader in this niche of web3 gaming.

AI agents are taking the gaming industry by storm, with blockchain technology acting as a powerful enabler of these intelligent friends of ours. The Balance gaming universe — supported by the proven track record of E-Pal — has a great chance of becoming the go-to environment in which to befriend your next artificial gaming partner.

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Balance (EPT): Revolutionizing web3 gaming with evolving AI companions

Mantle has launched the Mantle Index Four (MI4), an institutional-grade fund providing diversified exposure to yield-bearing digital assets. 

The S&P 500 rose 2.03% on strong Alphabet earnings and optimism over a possible Fed rate cut. Gold jumped 1.5% to $3,338 as trade tensions rose and a weaker dollar, along with falling yields, boosted demand. Fed rate cut signals also supported the rally. The Coindesk Indices, which tracks the broader crypto market, rose 0.74%, with Bitcoin up 0.06% and Ether down 1.89%, 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 INIT, up 15.4%, following the launch of Initia, which aims to revive the appchain concept with an interconnected network and an INIT token airdrop.

Initia (INIT), founded in 2022, is a modular blockchain platform that combines a Layer 1 network with customizable Layer 2 rollups, enabling scalable decentralized app development. It offers flexibility in virtual machines, gas tokens, and transaction systems, while ensuring interoperability and addressing issues like liquidity fragmentation and network congestion. Initia has 

 to revive the appchain concept by offering a network that integrates appchains in a cohesive, interconnected way. The platform emphasizes full-stack control for apps, avoiding fragmentation. Initia is also launching an airdrop with claims available until May 24, 2025. The native token, INIT, has a fixed supply of 1 billion, distributed across eight categories.

Check out the latest prices, charts, and data of 

, an institutional-grade fund providing diversified exposure to yield-bearing digital assets. In partnership with Securitize, which has tokenized over $3B in assets, the fund aims to fill a market gap by offering native yield generation in a traditional fund format. Mantle Treasury has committed up to $400M as the anchor investment. The fund will rebalance quarterly and incorporate DeFi-native staking strategies, such as mETH and bbSOL, while ensuring investor protections. MI4 targets both crypto-native and traditional investors, with Phase 1 rollout scheduled for Q2 2025.

Yesterday, BTC spot ETFs saw a total inflow of $114.7 million, all from non-GBTC funds, while GBTC recorded no flow.

Dolomite, the 10th largest DeFi lending app, is launching a 200M token 

 (20% of total supply) during its TGE on April 24, rewarding users based on platform usage. The DOLO token powers a three-token system alongside oDOLO and veDOLO, enabling incentives, governance, and potential revenue sharing. With over $800M in TVL, Dolomite expands to Berachain, integrating with its Proof of Liquidity system to offer advanced lending features and asset utility.

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Mantle launches MI4 fund for institutional-grade digital asset exposure and yield generation

Bybit Learn

Trading

Trading psychology refers to psychological factors such as thoughts, feelings and behaviors that can influence the decision of a trader. Learn more here.

Ever wondered how gifted traders make a full-time living trading crypto?

The secret to their success is not any holy grail, but their disciplined approach to crypto trading. If you're struggling to generate consistent profit, it's probably your mindset and how you approach the financial markets.

This article will help you get better at trading by explaining the core aspects of trading psychology, its importance in crypto trading and how to use it to maximize profits.

Trading psychology refers to psychological factors such as thoughts, feelings and behaviors that can influence the decision of a trader.

When trading crypto and other financial instruments, it's natural to react to unusual conditions, which often leads to losing money. To avoid making negative decisions, you must use the correct mindset based on the market data. This also means avoiding making impulsive decisions based on short-term fluctuations in the market.

Greed and fear are two common emotions that can impact your decision-making process.

Greed refers to an intense desire for greater profits or gains, often prompting you to take on excessive risk or make irrational trading decisions. For instance, you may hold onto a losing position for too long, hoping that the market will turn in your favor and lead to a larger profit.

Fear, on the other hand, is an emotion that arises from the perception of danger or risk. In trading, fear can lead you to avoiding taking risks altogether, causing you to miss out on potential profits or to exit positions prematurely.

This is why it's important to understand trading psychology. Doing so will help you learn trading patterns that can control deep-rooted 

Trading psychology means learning to manage the emotional and mental aspects of trading. It involves developing a mindset and strategies that will enable you to make rational, disciplined decisions, even in the face of market fluctuations or unexpected events.

As discussed, the key aspect of trading psychology is managing emotions such as fear and greed. You can control these psychological traits through meditation, visualization and positive self-talk. These methods will help you stay focused and calm while trading.

Another critical aspect of trading psychology is 

. You must learn to manage risk effectively by setting 

, controlling position sizes and avoiding over-trading. This will help limit losses and protect your capital, which is essential for long-term success.

Developing a trading plan and sticking to it is yet another crucial aspect of trading psychology. You must have a clear strategy in place, with specific entry and exit points, and adhere to that plan even in the face of market fluctuations. This mindset of resolve will help reduce the impact of your emotions on investment decisions and ensure that you can make logical decisions.

Why Is Trading Psychology Important in Crypto Trading?

Crypto trading is a relatively new market that can fluctuate widely, because crypto is highly volatile. Therefore, the role of trading psychology in crypto trading is even more critical compared to other financial markets.

When trading crypto, you're going to experience strong emotional reactions to sudden price movements, such as fear of missing out (

) when prices rise rapidly, and fear of losing money when prices fall. These emotional reactions can lead to irrational decisions. For instance, you may buy at the top of the market, or sell during a market 

To tackle the emotional roller-coaster landscape of the crypto market, there has to be a plan for holding your positions during wild rides and major news events. It's important because crypto is largely unregulated, which makes it highly susceptible to sudden price movements. Hence, you must fine-tune your trading psychology to become a consistently profitable trader.

How Does Trading Psychology Affect Profits in Crypto Trading?

The advent of online platforms and electronic trading has affected profits because people are eager to try high-frequency trading (

) techniques. As traders initiate trades more often, they're exposed to emotional decision-making. And when emotions come into play, there’s a tendency to lose capital more quickly.

For instance, FOMO can be a potent emotion that drives traders to make impulsive decisions. This trading psychology manifested during the market movements of 2018 and 2021.

, many traders bought into Bitcoin at its 

, only to see it plummet to less than $4,000 a year later. Three years later, in 2021, the pattern repeated itself as Bitcoin’s price 

 before proceeding to $17,000 within a matter of months. (It has since found support at around $24,000.) In both of these instances, traders entered the market at the peak of the 

 because they feared they might not catch the opportunity. The result was a significant loss as the market tumbled down from its peak.

Likewise, loss aversion can lead traders to hold onto losing positions for too long, hoping for a turnaround. This can result in missed opportunities to invest in more profitable assets. For example, a trader who holds onto a crypto asset that’s lost 50% of its value might be hesitant to sell, hoping that the asset will recover.

In this context, the price of the FTX token is a good example. 

, the native token of the FTX exchange, was trading at around $26.10 on Nov 1, 2022, when news of potential leverage concerns started circulating in the crypto community.

At the time, some traders took evasive action by withdrawing their assets and investing in the alternative crypto market. However, traders who held onto the asset weren't so lucky, because the price plummeted sharply on Nov 10, 2022, to $2.20, and continued to decline.

How to Use Trading Psychology to Maximize Profits

You can improve your trading considerably if you avoid getting carried away by the hype around crypto trading and the prevailing 

. Don't expect to make huge profits overnight — and avoid investing more than you can afford to lose.

When trading, remember the following important tips.

Having the right trading mindset means adopting a disciplined, patient, resilient and focused mental attitude toward trading in financial markets. A trader with the right mindset is prepared to handle losses and setbacks — and is willing to learn from their mistakes.

Trading success requires patience. Accordingly, you must wait for the right opportunities to present themselves. By adopting the right trading mindset, it's possible to make informed decisions and manage risks effectively, leading to better trading outcomes over the long term.

When it comes to trading psychology, fear and greed are the two most important psychological traits to overcome. Here's why.

Fear is a natural human emotion that can play a significant role in investment decisions. When experiencing fear, you're often hesitant, which can lead to missed opportunities or exiting trades too early. On the other hand, fear can also lead to impulsive decisions, such as holding onto losing trades for too long, or entering trades that don’t fit your strategy.

One effective strategy for managing fear is to have a well-defined trading plan. Trading psychology suggests that you must stick to this plan. Doing so can help you make objective decisions even when emotions are running high. Additionally, you can use risk management techniques, such as setting stop-loss orders or using position sizing, to limit exposure to market movements.

Greed can lead you to take on too much risk, ignore warning signs and engage in impulsive and reckless behavior. To tackle these impulses, set realistic profit targets and be disciplined in adhering to them.

Try to cultivate a trading psychology of gratitude and contentment. This means focusing on the progress you’ve made and the trading success you’ve achieved, rather than constantly chasing more profit.

Instead of trying to trade every opportunity, it's better to trade prudently with reasonable gains and avoid excessive exposure. Ultimately, you’ll be able to minimize the negative impact of greed on trading performance.

It’s important to set specific guidelines and parameters that must govern your trading decisions at all costs. These rules are based on a preset trading plan that can help you stay disciplined and focused when making trades in financial markets.

Setting rules can be an effective way to manage emotions such as fear, greed and impulsivity. For example, you may set a rule to only risk a certain percentage of your account on any one trade. This can help avoid taking on too much risk and prevent impulsive decisions.

 is a tool used by traders to evaluate their trading performance, identify patterns and improve decision-making.

If you only trade a few times daily, the trading journal can identify your strengths and weaknesses and help you make adjustments to defined trading strategies. For instance, a trading journal can help you notice patterns in your emotions that adversely affect decision-making, such as a tendency to panic during periods of market volatility.

By identifying patterns, traders can develop strategies to manage their emotions and make more informed decisions in line with trading psychology.

Discipline is perhaps the most critical element of trading psychology, because it helps you avoid impulsive decisions and stay focused on long-term goals.

You must stick to your trading plan, even when market conditions are challenging. This can involve making difficult decisions that may involve cutting losses, or avoiding trades that don't meet your criteria.

Discipline also requires effective risk management. It’s imperative that you manage your positions and avoid excessive risk, regardless of the existing market sentiment. This includes setting stop-loss orders and limiting position sizes to a percentage of your account balance.

It may seem counterintuitive, but taking time 

 trading activities is important to maintain mental and emotional well-being.

Trading is mentally and emotionally demanding. Therefore, taking regular breaks can help you maintain focus and avoid fatigue. You can also relax by stepping away from your screens and taking a walk, or engaging in other stimulating activities.

This important part of trading psychology can lead to improved trading outcomes and help you achieve long-term success in financial markets.

Sometimes, you need to sit back and reflect on past trading decisions and outcomes. Self-reflection reduces mistakes and helps you make better decisions in the future.

As part of trading psychology you may review your trading plan, analyze market data and seek feedback from other traders. When possible, reflect on your emotions during each trade — and how they may have affected your decisions at particular trading intervals. Once you've identified mistakes, you can develop strategies and trading plans to avoid making the same mistakes in the future.

Learning from mistakes also requires a growth mindset. It's important to accept that mistakes are a natural part of the learning process that can lead to feedback and self-improvement.

If you can't control your emotions or don't want to adhere to a specific trading psychology, try using 

 strategies. Automated trading strategies use predefined rules that analyze market data and execute trades on your behalf.

Automation eliminates emotional biases that can result from fear and greed. It can also help you respond more quickly to changes in market conditions and take advantage of opportunities you may miss otherwise.

 that can help streamline your trades. Depending on your trading style, you can easily customize the 

, back-test it and grab opportunities around the clock.

Due to the volatile nature of crypto markets, crypto traders are always exposed to risk. Therefore, it's important to avoid making impulsive decisions based on short-term fluctuations.

Like every successful trader, you should set realistic expectations, develop techniques to manage emotions and stick to a trading plan. Developing a trading psychology will help you reap greater profits in the long run.

Trading Psychology: How It Impacts Your Profits in Crypto Trading

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