Cryptocurrencies have gained top popularity due to the innovativeness of technology. But it is difficult to deny the fact that many investors pay attention to them, first of all, as a financial instrument for earning.
There are many ways to make money on cryptocurrencies. The main one is cryptocurrency trading. The main advantages of this activity:
The most crucial thing in trading is to choose a reliable broker. For example, the Dowmarkets platform is good for those who want a promising start.
Cryptocurrency exchanges are unique online platforms designed for trading and exchanging digital coins. Also, pairs with various national currencies are supported on exchanges, which allows you to exchange them for familiar money.
Cryptocurrency exchanges provide participants with a convenient platform where they can trade cryptocurrencies, ensure the safety of traders, and provide all the necessary tools for trading.
In cryptocurrency trading for beginners, the task of the trader is to find the best entries and exits from the market. Formally, the basic principle of trade can be formulated as “buy cheaper, sell more expensive.” For this, a trader, first of all, needs to understand how the value of cryptocurrencies is formed and what factors affect this.
According to Google, the cryptocurrency market is highly volatile. First of all, you need to understand that the rate of bitcoin and other cryptocurrencies is formed due to supply and demand in the market. Traders and speculators influenced on it.
Minor fluctuations in the exchange rate of bitcoin and ethereum are often the result of trading by large players within the same trading platform. Traders intend to swing the market a bit to get their profit with a relative calm situation in the market. Beginner traders with a demo account can also use these swings to make a profit without violating privacy policy.
Also, the rate of the digital currency is influenced by investors who buy coins for the long term, as well as those who purchase cryptocurrency, not for subsequent sale, but transit use or payment for services.
To trade cryptocurrency, first of all, you should decide on the preferred trading pair and choose the optimal entry point to the market, that is, buy a digital asset at the best price. To do this, the trader can independently monitor the market and make an instant purchase transaction or place a limit order for the purchase price.
After the digital asset is acquired, you can trade in one of the following ways:
In each of the cases, the trader needs to wait with the investment until the current market value of the cryptocurrency exceeds its price at the time of purchase. Only in this case, the transaction will work.
Traders use a variety of free tools that allow them to invest, to assess the general situation in the market and determine the future course for making profitable transactions. To be able to learn the tools, you will have to go through a brief training.
A graph is the history of the course of the selected trading pair. Diagrams can be reflected in the form of curves or candlesticks. The latter is most popular because it demonstrates the movement of the value of a digital coin and the spread difference.
Many traders skillfully turn high volatility into income, but for beginners, it is quite dangerous. At some points, the cost of a digital coin can rise by several hundred percents per day and, accordingly, bring the same profit. That’s only right to determine market trends can only be with at least minimal knowledge. In the future, the acquired experience will allow you to become a successful trader and make a fortune.