Table of Contents
The long-awaited restart is here, marking the beginning of a new chapter in our journey. And it’s happening because of the unwavering support and patience of our community. Your belief in WazirX throughout this period has made the restart possible, and we remain deeply grateful.
With the restart, users can now resume trading on WazirX. On Day One, it’s normal to see fluctuations in token prices and liquidity, but these are expected and shall stabilize over time. As more users join in, the markets will quickly balance out, creating smoother trading conditions.
That’s why it’s important to begin with the right mindset. One of the biggest mistakes traders can make on their first day is rushed-selling, which can lead to unnecessary losses. To help you prepare, here’s a quick checklist on how you can navigate Day One of the restart.
#1 Misjudging Day-One Volatility
When a platform resumes after a long pause, price swings are a normal part of the process. Initial trading activity sets the foundation for price discovery, and early fluctuations should not be mistaken for long-term trends.
It is natural to see short-term price swings as liquidity rebuilds and more participants return to the market. Immediate reactions during this period could result in trades that do not reflect stabilized market conditions.
Some traders may see an initial dip in token prices and react too quickly, fearing they’ll lose out by waiting. Reacting too quickly during this phase may result in trades at less favorable prices, especially when conditions stabilize shortly afterward.
A measured approach allowing prices and liquidity to settle helps protect your portfolio and contributes to overall market stability.
#2 Ignoring Thin Liquidity in Early Hours
Platform liquidity takes time to settle after a restart. In the initial hours, order books may not be deep enough to absorb large trades. If a user sells a large portion of their portfolio too quickly, it can cause prices to drop below expectations. This price drop will not only hurt the user but also affect the overall market sentiment.
Allowing time for market participants to return and for liquidity to normalize may lead to execution at prices more in line with prevailing market conditions. Early sellers often regret acting too soon when they realize they sold far below what they could have fetched just a few hours later.
#3 Underestimating Institutional Arbitrage
Arbitrage is the practice of taking advantage of price differences across multiple exchanges.
On restart day, institutional traders may engage in arbitrage, taking advantage of price differences across platforms. These participants often have advanced tools and strategies designed to act quickly.
If retail traders panic-sell during these gaps, large players will likely scoop up those assets at lower prices and resell them elsewhere for profit. Retail participants who respond to short-term price movements may encounter situations where assets are acquired by institutional traders at lower prices and resold elsewhere.
The more effective approach is to remain patient, recognize that such movements are short-term, and focus on steady participation rather than chasing every fluctuation.
#4 Overlooking the Impact of Slippage
Slippage occurs when your trade is executed at a different price than you expected, often due to low liquidity available on the platform.
On the restart day, the slippage risk will be especially higher. For example, a trader may see a token priced at ₹100, but by the time their large sell order is executed, it might be priced at ₹90 or even lower.
Rushed trades amplify this effect, as they don’t account for market depth, often leading to lower returns than intended.
To help manage such risks, users may consider available tools such as limit orders or distributing larger trades into smaller portions, depending on their individual circumstances.
Key Takeaways
Day One of WazirX’s restart is a milestone for all of us. It will also require patience, as the early phase of trading sets the foundation for stability. Every user’s approach will influence this momentum, and staying patient and measured is key to protecting both your portfolio and our shared progress.
Trust the process, stay calm, let liquidity and price normalize, and make informed decisions.
This restart is about building a stronger and more resilient marketplace together. With calm, measured participation, we can ensure a safer and more resilient marketplace for the future.
Trade wisely!
Disclaimer: Click Here to read the Disclaimer.
