TechFlow reports, on October 28, cryptocurrency trader Eugene Ng Ah Sio posted on social platform X explaining the fundamental differences between centralized exchange (CEX) trading and on-chain speculation. Eugene pointed out that the core of CEX trading lies in identifying clear trade setups to minimize downside risk. High-quality trading strategies typically set strict stop-loss levels while maintaining significantly higher profit targets, resulting in profit multiples far exceeding losses. Although this may lead to more frequent stop-outs, effective risk management is key to becoming a consistently profitable trader.
In contrast, on-chain speculation requires traders to accept the possibility of assets going completely to zero. Due to the higher return potential (10–100x) of on-chain projects and generally low liquidity (typically below one million USD), traditional technical analysis methods often fail in such trades. Eugene emphasized that these two trading models demand different skill sets, and being skilled at CEX trading does not necessarily translate into success in on-chain trading.
