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Crypto Trading

by Obajuwon Israel 2 months ago in stocks
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A more In-depth look

Crypto Trading
Photo by Quantitatives on Unsplash

Having read the word "trading," you might assume that not everyone can master this profession. You are right to some extent. However, you will succeed if you know a thing or two about trade, take an interest in news and events in the economic sector, and keep track of the exchange rate. You may even learn to make some financial forecasts. Trading cryptocurrency exchange does not differ much from trading on the stock exchange. It's just important to know how to analyze charts, make well-considered decisions, not pander to fear, rumors, or emotions, and most importantly, to be ready to lose everything.

Trading in the stock market is all about exchanging currency pairs. Each transaction party dictates its terms, and the second, respectively, decides whether to accept them or to reject them. On the cryptocurrency exchange, you work only to buy or sell. By placing an order, you set the price lower or higher than the available price. You state how many coins you want to buy and quote your price. If the market reaches your quote, the order is filled.

Let me explain when you can place an order on the cryptocurrency exchange. Let's say you read in the news that Bitcoin prices will fall and then grow again. It’s time for you to invest. I want to mention, though, that there is no exact formula that explains what coins you should invest in and when. The most important thing is not to invest at the stage of prolonged fall of a coin. On the contrary, it is good to invest in coins at the beginning of growth after a drawdown and, of course, in stable-growing coins to be on the safer side.

As I have already mentioned, look through coinmarketcap.com to choose coins for trading. Also, keep an eye on the news about the release of new coins and track the price charts of main coins. Another important point is that you need to know the right time to buy or sell to make a profit. If you make a mistake, you have every chance to turn from a short-term investor into a strategic long-term one.

Do not forget about the exchange fees. I also want to remind you again: invest only the amount of money you are prepared to lose. You must in no case borrow money to trade within the market. You will suffer inevitable losses in this market. A critically important aspect of trading is security. The issue of security is crucial in any field that deals with money. All the more in the cryptocurrency market, where the amount of your investment portfolio can reach several tens of thousands of dollars, it would be irresponsible not to think about security in advance.

You must research all possible ways to protect your finances. What is the most convenient way to steal your cryptocurrency? The answer is: to steal it from the stock exchange. Let me share an example. In the summer of 2017, the largest cryptocurrency exchange in South Korea, Bithumb, reported billions of losses as a result of hacking. That's why I believe that keeping money on the exchange is risky. The advantages of hot wallets, which are kept on the exchange, are accessibility and fast operation. You can easily access them as they are connected to the Internet. However, hot wallets have the huge drawback of vulnerability due to their connection to the Internet. I won’t elaborate any more on the topic of trading here since I devote a separate chapter to trading as one of the most widespread ways of making a profit in the cryptocurrency market.

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Obajuwon Israel

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