What is Cryptocurrency Trading, How Can You Learn It and Earn on It?
The rapid growth of cryptocurrency exchange rate caused an increased interest in this industry among a wide range of people. It should be noted that many people still believe that Bitcoin and other coins are pyramids or bubbles, which sooner or later will collapse / burst, leaving their contributors with nothing. Such thoughts often arise in the minds of people who do not understand the topic at all. This is absolutely normal, when the general public does not accept the new technology and treats it skeptically. It was the same with all the fundamental things that eventually changed the world, like radio, television and mobile phones. But even those people who do not believe in the future of cryptocurrency do not deny that you can make money on the fluctuation of the coin rates. That's how we are approaching our today's topic - cryptocurrency trading. Contents: (please, click the topic to scroll down to it)
- What is cryptocurrency trading?
- How to learn cryptocurrency trading?
- What are the main strategies of cryptocurrency trading?
- How not to lose the whole trading deposit?
- Scalping. Its name speaks for itself. Using this strategy the trader removes the surplus profit just like a scalp. Scalping involves high-intensity trade, the opening and closing of dozens and even hundreds of orders per day. For example, you buy BCT for $6103 and sell it for $6109 in 10 minutes. Earnings on one transaction are minimal, the profit is achieved due to a large number of transactions. The strategy is suitable for beginners, since it does not imply a deep technical analysis.
- Speculating for a fall or shorting. It involves buying assets on a downtrend and timely selling them with minimal growth. It is necessary to spend a lot of time peering into the trading terminal not to miss the price jumps.
- Daily. As part of this strategy, the coin is bought in the first half of the day at an average lower cost. After that, the trader observes the situation until the evening and sells the asset at an average higher price. For example, in the morning you buy coins which cost $500 per piece and sell them for $510 in the evening.
- Momentum. Trading with this strategy implies a complete immersion in the process. Trader actively monitors the volume of trading and news background. The success of working with this strategy depends on the ability to look through and filter tons of information. For example, you know that TRON will be listed on a new exchange tomorrow. So you need to buy this coin today and wait for tomorrow's rally, at the first sign of a downward tendency you need to sell the asset immediately.
- follow the forums, chat rooms in Telegram and blindly copy their actions;
- trade using insider information from cheap or free signal groups;
- trust all insiders without conducting your own technical analysis;
- keep only one asset;
- buy because of hype and sell because of panic;
- trade emotionally;
- trade a substantial amount of money (credit card, debt, selling real estate to invest, etc.).