What is Cryptocurrency Trading, How Can You Learn It and Earn on It?

What is cryptotrading, how can you learn and earn 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)

  1. What is cryptocurrency trading?
  2. How to learn cryptocurrency trading?
  3. What are the main strategies of cryptocurrency trading?
  4. How not to lose the whole trading deposit?
  5. Conclusion

1. What is cryptocurrency trading?

This article will be useful only for beginners, who have a basic understanding of the process. For example, if your knowledge of trading consists of one sentence: buy cheaper, sell more, then you will learn a lot of new stuff here, find answers to frequently asked questions and plan your future strategy.

So, cryptocurrency trading is the purchase of an asset at a lower price, selling it at a higher cost at the right time and receiving profits. The volatility feeds the trader. The trader does not care what happens to the market in a global sense, his/her main earnings is the difference he/she gets from playing on the fluctuation of the exchange rate. It means that the trader can earn in the falling market as well. Of course, he/she tracks market movements (bears, bulls, trading range, etc.) and forms his/her trading strategy on the basis of those. Obviously, it is easier to make money in a growing market, but what distinguishes an investor from a trader is that the former earns only if the rate increases, while the latter is more autonomous.

2. How to learn cryptocurrency trading?

Cryptocurrency trading for beginners is full of unpleasant experiences and 99% probability of losing the whole trade deposit. Thus, the formula for successful trading sounds like this: “Stop being newbies or stop trading at all.” Of course, people are not born with the gene of a trader in their DNA, this certainly needs to be learned. However, it is very important to understand that you must not trade a substantial sum which belongs to you or someone else at the initial stage (up to one year). There are a lot of nuances incryptocurrency trading that need to be taken into account. The industry is still too young, so the market is very volatile (subject to sharp jumps in the exchange rate) and sometimes not quite rational.

A very important aspect, which you should pay attention to first and foremost is the study of professional terminology. There is a so-called “Dictionary of the cryptocurrency trading”. Not knowing it, it will be rather difficult to plunge into trading on stock exchanges.

The ideal option is to find a mentor who inspires confidence in you and learn from him/her personally, since individual learning is more effective. Also, you can take various group online courses. In this case, try to attend the webinars, rather than watch them in the recording. In this way you will have an opportunity to ask questions in real time and be on the same level as the group.

Of course, you can just wander the Internet in search of information, but you should understand that not all content is useful and, most importantly, relevant. For example, something that worked in 2016-2017 will not bring anything except losses in 2018.

3. What are the main strategies of cryptocurrency trading?

By and large, each experienced trader has his/her own personal trading strategy, but if we generalize and highlight the most widely usedones, we will get the following list:

  • 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.

4. How not to lose the whole trading deposit?

Frankly speaking, there are many reasons why even experienced traders can lose their savings. We will not consider them all, as no one is protected from the force majeure situation. The main rule of money management is diversification, that is, keeping assets in different places. Here are some basic mistakes, avoiding which you essentially minimize your losses. Let’s name the things that you should NOT do:

  • 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.).

5. Conclusion

Trading on the cryptocurrency market is a fairly profitable sphere, but it will be very difficult to succeed in this field without proper education and knowledge. You should adhere to the rules of “smart” cryptocurrency trading and always stay calm and focused to trade coins successfully. You can not treat trading as a gamble, otherwise you can lose all your money.

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Cryptocurrency Prices Today, September 22: Cryptocurrencies Are Unstable, Ripple Is Still Growing

crypto prices

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coin360, Bitcоin (BTC) lost 0.74% in the past 24 hours. The price at the time of writing is $6652 per coin.

Cryptocurrencies stay both in the red and green zones:

Bitcoin Cash lost 1.70% over the past day and costs $473 per coin;

Ripple added 20.57% and is worth $0.56;

EOS grew by 1.87%, and its price is $5.89;

Litecoin increased by 0.71%, and its cost is $58;

Cardano lost 3.40%, and its value is $0.081;

Stellar dropped by 4.54% and is worth $0.23;

IOTA added 0.36%, and its value is $0.58;

Dash lost 3.3.1% and costs $200;

Monero decreased by 0.33% and is worth $119.

Ethereum added 3.97% over the past 24 hours. The cost of the coin is $235.

The total market capitalization is $221 billion. Bitcoin accounts for 52% of the total volume. It is $115 billion in monetary terms.

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HitBTC Added the Gemini Dollar Owned by Winklevoss Brothers to the Listing

gemini dollar listed on hitbtc

The cryptocurrency exchange HitBTC announced on its Twitter the addition of the Gemini dollar, launched by Cameron and Tyler Winklevoss on the Ethereum blockchain, into their own list of trading positions.

Since September 20, customers of the HitBTC, which joined it this year, can trade with Bitcoin, EOS, Tether and Ethereum in pairs with the Gemini dollar. The HitBTC platform was the first exchange on the cryptocurrency market, which carries out operations with this stablecoin.

We remind you:

OKCoin Adds Five New Tokens to Its Listing

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Cryptocurrency Prices Today, September 21: Bitcoin and Ethereum Are in the Green Zone, Ripple Rose by More Than 40%

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coin360, over the past 24 hours Bitcоin (BTC) added 4.51%. The price at the time of writing is $6699 per coin.

Cryptocurrencies are showing positive dynamics:

Bitcoin Cash added 12.86% over the past day and costs $480 per coin;

Ripple added 41.76% and is worth $0.46;

EOS grew by 10.57%, and its price is $5.78;

Litecoin increased by 7.14%, and its value is $57;

Cardano added 16.18%, and its cost is $0.083;

Stellar gained 18.71% and is worth $0.24;

IOTA grew by 9.16%, and its value is $0.57;

Dash added 7.83%, and its price is $205;

Monero increased by 7.28% and is worth $119.

Ethereum added 8.43% over the past 24 hours. The cost of the coin is $226.

The total market capitalization is $217 billion. Bitcoin accounts for 53.2% of the total volume. In monetary terms, this is $115 billion.

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Mining Complexity: What It Is and Where It Will Get

mining complexity

Not long ago there was a real gold rush around cryptocurrency mining – thousands of people started digging digital rock to get the precious digital gold, while its rate was beating all records and surpassing all expectations. It all started from simple mining on users devices – laptops, personal computers, tablets, etc. – and turned into a complicated industry with a developed infrastructure. Mining pools appeared, specialized equipment (ASIC-miners) was produced, huge mining farms were set up, where mining was conducted on an industrial scale. Mining even partially switched to the cloud – services appeared that offered cloud cryptocurrency mining without any investments, except for financial ones. Although mining has not changed the structure of the world economy, it is nevertheless not an ordinary phenomenon. The fact that currently cryptocurrency mining consumes more electricity than many countries is a case in point.

Today we will talk about what mining complexity, its function, how it changes, what it depends on and how can it set the tone for the entire cryptocurrency mining industry.

Contents:
(please, click the topic to scroll down to it)

  1. Brief review of mining
  2. Complexity: how it changes and what it depends on
  3. What will happen to mining in the future
  4. Conclusion

 1. Brief review of mining

Mining actually means making computational operations to decode a certain algorithm and find its hash. Every mineable cryptocurrency is based on a particular hashing algorithm. When the algorithm is successfully decoded, a new block is added into blockchain, a new coin is issued and miners get their rewards. Many popular digital currencies can be issued only through mining, these are Bitcoin and its forks, Ethereum, Monero, Litecoin, Dash, Zcash, etc. Some, however, are pre-mined and do not provide mining opportunities, like Ripple, NEO, NEM, EOS, Tether, etc.

Depending on hash features, different equipment can be used to mine different digital currencies. Initially all mineable coins, including BTC, were mined on users devices (PCs or laptops) using CPU. Today it is not that common and there are a few popular coins that still provide such type of mining. Soon CPUs became not enough to profitably mine digital coins and miners started using graphic cards to cope with more resource-intensive calculations and growing complexity.

Later the specialized equipment appeared on the market – ASIC-miners that are used today to mine Bitcoin, as well as other coins, such as Litecoin, Ethereum, Dogecoin, Zcash, Bitcoin Cash, Litecoin, etc. ASIC is a specialized microchip that performs calculations much faster than graphic cards. Although ASIC today is mostly associated with mining, the technology itself was developed in early 1980s to advance graphic performance of PCs. Besides, miners create pools where they combine their processing power to make mining more efficient for the whole group. The reward for the created block is then distributed depending on the processing power provided by each pool member.

There is also another mining solution – cloud mining. Graphic cards and ASIC-miners are rather expensive, more and more of them are required to mine profitably. The equipment needs space to be placed, has to be connected to the power grid, cooled, cleaned, repaired, set up, monitored, etc. Cloud mining implies leasing of computing power from companies that manage large mining farms and data centers. In addition, cryptocurrency is mined in other sometimes even illegal ways. For example, your computer can be infected with a hidden virus-miner that uses its resources to mine a particular coin.

2. Complexity: how it changes and what it depends on

Complexity indicates how difficult it is to find hash. The specified hash parameters determine how difficult calculations should be to find it. The more users are there in the network and the more cryptocurrency is mined – the higher complexity is. Bitcoin complexity is reviewed every 2016 blocks (about 2 weeks) and depends on how much time was spent to mine previous 2016 blocks.

What is the function of complexity? Bitcoin is designed to add every new block in  10 minutes on average. This can differ from one cryptocurrency to another (2.5 minutes for Litecoin and up to 20 seconds for Ethereum). The amount of processing power in the network can drastically change over time – when Satoshi Nakamoto mined the first BTC, there was only one device in the network, probably a laptop or a PC. Today we have huge industrial farms with thousands of special mining devices.

To ensure the stability of the generation of new blocks, cryptocurrency software automatically makes it more or less difficult for miners to find hash. So if there are more miners and the computing power of the network increases, it is more difficult to find hash. If the power decreases – it becomes easier to make all necessary calculations. This is the way the system remains sustainable – no matter how much processing power is their in the network it will still take around 10 minutes to generate new Bitcoin block. In early 2010, Bitcoin complexity was just a little bit above 1, while in 2013 it was already 3 million. Today it has already exceeded 7 trillion.


Source: BitcoinEnergyConsumption.com

So, every 2016 blocks (about every two weeks), Bitcoin corrects its complexity, so that each block is generated in approximately 10 minutes, regardless of the number of miners in the system. Other mineable cryptocurrencies has the same role for complexity and it is implemented in a similar way.

3. What will happen to the mining in the future

Mining is no longer the same as it used to be – says… everyone. While some digital currencies can still be mined using PCs, it is rather difficult to join the “extraction” of most of the leading coins. To start mining Bitcoin today you should have… started mining Bitcoin a few years ago. The same thing is happening to other digital currencies, and ASIC-miners are to blame in fact. They are able to make calculations way faster and more efficient and wherever they enter the mining market, the total complexity increases and CPU/GPU-mining retires. However, some still manage to make money out of mining. There are still those coins that are not mined using ASIC-miners, which means one can still mine them on average laptops or PCs.

Anyway, one thing is clear – today, mining is no longer stands for easy money, and the market is being taken over by large, “professional” miners, who mine digital coins on an industrial scale. Industrial mining is associated with a whole range of logistics, legal and resource issues. Until recently, most of Bitcoin miners were located in China, but last year the government banned ICOs, cryptocurrency trade and mining. Another thing is energy consumption. Calculations require a lot of electricity, so the miners are looking for countries with lower power prices.

 

Source: BitcoinEnergyConsumption.com

Another problem is obsolescence of equipment. Many industrial miners have found out, that the hardware they used to mine BTC 2017 cannot ensure the same profit in 2018.

So, mining becomes less profitable and new members have no chance to join the market easily. This lead to the fact that mining of top coins becomes way less popular. Not mineable coins, as well as those who still provide available mining can take advantage of that. For example, in 2017 there was a boom for mining browser extensions (like Coinhive). Of course, browser-mining of Bitcoin or Ethereum sounds rather weird, but there is another relatively popular coin – Monero – that still provides such an opportunity.

4. Conclusion

So, complexity is one of the key categories that form a technical structure of mineable cryptocurrencies. Written in the protocol, it helps blockchain to remain sustainable in terms of the time necessary for the generation of new blocks. Complexity directly depends on the number of miners in the network and, accordingly, on the total processing power. Most of the leading cryptocurrencies have already became much more difficult to mine and this is obviously an ongoing process. There are more users, more special equipment and more professional industrial-scale miners which make mining unavailable for average users.  

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OKCoin Adds Five New Tokens to Its Listing

okcoin adds five new coins

To continue our today’s topic related to crypto exchanges, we wanted to inform you about the changes in the listing of the exchange OKCoin. OKCoin is currently occupying the second position of the CoinMarketCap rating. A couple of days ago, the management of the exchange introduced 5 new digital assets:

The newly added cryptocurrencies include:

– Ripple

ZCash

Cardano

– Stellar lumens

– 0x

The CEO of OKCoin seems pretty excited due to this event.

We are very pleased to welcome these five new cryptocurrencies and all of the communities that trade them,” he said.

We remind you:

Bittrex Adds Two New Coins: XRP and ETC

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Binance Is Spreading All Over the World

Binance is already the largest cryptocurrency exchange with the biggest trading volumes, as stated on the CoinMarketCap, but its CEO, Zhao Changpeng, is definitely not going to stop on this.

Speaking at the event in Singapore, after Binance launched a fiat branch there, Zhao spoke about creating his exchange, developing it and plans for futher expansion.

One of the biggest ambitions of Binance is opening subsidiary offices on all of the continents. The perfect outcome would be 2 exchanges on each continent. Given the fact that cryptocurrency is still far from replacing fiat assets, Zhao Changpeng finds it very important to keep fiat/crypto trading pairs.

Fiat is still where all the money is in. … And we’ve got to open that gate,” he said.

We remind you:

Review of Binance Coin Сryptoсurrency: Benefits for Holders and Prospects for Development

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