Cryptocurrencies have huge potential and provide a wide range of trading opportunities for investors. A lot of attention is concentrated around bitcoin, because when such a cryptocurrency hits the wave, its value soars up. If the value of the currency sags, investors tend to buy it at an affordable price. With an increase in value, traders seek to sell it. How to play on the currency exchange in such a way as to make money? You will find out from the above article.
general information
The process of trading cryptocurrencies is quite simple. However, it is necessary to understand it and independently go through a cycle from depositing funds to the exchange to obtaining a financial result. To understand when and in what direction the cryptocurrency rate will go, it is necessary to analyze a large amount of information.
Market specifics
The question of how to play on the cryptocurrency exchange is profitable; it interests all newcomers in this field of activity. This type of trading has several advantages relative to conventional trading. Bitcoin is a global currency that is independent. It is not tied to a particular state, although events taking place in the world affect its value. Therefore, if in any country there is a depreciation of the local currency, the cost of bitcoin can change its course.
Financial crises have a strong impact on the value of cryptocurrencies. Many large account holders claim that bitcoin is uncontrollable. Such a currency does not have an official price or official rate. Bitcoin is characterized by a high degree of volatility, which creates excellent conditions for trading. Over the past few months, its value has changed rapidly, so many traders are interested in how to play correctly on the cryptocurrency exchange.
Key Trading Principles
In order to make a profit on the cryptocurrency exchange, traders need to buy it at a low cost and after a certain period of time sell it much more expensive. In order to determine the best moment for the purchase and sale of currency, certain tools, strategies and tactics have been developed.
Also, novice traders need to operate with basic terms and be able to read charts. From the charts, you can determine the trend in the value of cryptocurrency. The history of transactions will allow you to track all the transactions that were conducted on the exchange. Requests by market participants for the purchase and sale of foreign currency are called warrants. Existing exchanges can be divided into 2 main types:
- exchange of bitcoin and other cryptocurrencies can be made to other world currencies;
- Bitcoin exchange can only be made to another cryptocurrency.
If a trader intends to independently study cryptocurrency exchanges, it is necessary to pay attention to the following parameters:
- regulation and degree of trust;
- territorial location of the exchange;
- percentage of the transaction;
- degree of liquidity.
The peculiarity of trading is that if a market participant sets a high sale price, the order will still close and the trader will earn. In the event that a low price for the purchase of currency was set, you can cancel this order and place a new one.
The main principles of the game on the stock exchange
It is not recommended to bet last money, since such actions will not allow you to correctly assess the situation on the market due to emotional overload.Do not wait for the “most-most” maximum and minimum, since excessive risk is never justified. It is best to play in several currencies at the same time and in different markets. This will compensate for losses and go to the plus. In a professional environment, this process is called diversification.
Decision Making Basis
Before entering the cryptocurrency exchange, it is recommended to view the latest news in this area and get mixed information from various market experts. At the first stages, it is better to listen to the opinions of experts and understand on the basis of what data their choice of a forecast is made. After gaining experience in this area, you can independently draw certain conclusions.
Where to trade?
Experts note that it is most profitable to trade on the following cryptocurrency exchanges:
- Exmo. This is a domestic exchange that has convenient and great functionality. Such payment systems as AdvCash, Payeer, Yandex, Qiwi and others are used. Many traders prefer this particular platform, so they are interested in how to play on the Exmo cryptocurrency exchange. Such a platform provides an opportunity for users to act as an investor, trader or miner.
- Binance This is the largest Chinese cryptocurrency exchange located in Hong Kong. In terms of trading volume, this exchange holds a leading position in the world. On a similar platform, a quick exchange and withdrawal of cryptocurrencies is possible.
- Kucoin. This exchange is among the top cryptocurrency exchanges in terms of bitcoin trading volume in Asia. The platform supports a large number of cryptocurrencies and provides low fees.
- Bitfinex It is the largest exchange on which you can trade 3 pairs of currencies. Also on the exchange you can carry out margin trading and engage in brokerage activities.
- BTC-e. This is the most popular exchange among traders, since the platform does not require verification. In order to start trading, the user just needs to specify an email address. Traders can exchange bitcoins for rubles, dollars and euros.
- Yobit. Exists on the market since 2014 and provides users with 900 active cryptocurrency currency pairs. The exchange charges a low commission for depositing and withdrawing funds, and also has wide functionality, so many traders are interested in how to play on the Yobit cryptocurrency exchange. Users need to carefully study the offer of the exchange, analysis techniques and other nuances. Then you can start the trading process and earn on cryptocurrency purchase and sale transactions.
It is important for traders not only to correctly choose the exchange, but also to choose a trading tactic that gives advantages over other players in the market. The right tactics, coupled with discipline, effective risk and money management will significantly increase the chances of making big profits.
Lower Price Earnings Strategies
Many novice traders are interested in the question of how to play downgrade on the cryptocurrency exchange. This is due to the fact that the main long-term trend of several months is bullish. Since the cryptocurrency market is characterized by high volatility, traders see this as a great opportunity for making money. The benefit can be derived not only from the price movement up, but also during its decline.
Market participants can choose one of the presented strategies for profit on lower prices.
- Slow build-up of positions for the purpose of subsequent sale when the trend changes.
- The use of short positions, which allows you to purchase cryptocurrency on credit and sell it at the current price in the market. After reducing the cost, the trader can buy the currency at a low price, repay the debt and make a profit on the difference. Many platforms provide a similar service in automatic mode. You can also get cryptocurrency from other investors on loan.In such a fall game, one should be very careful, since the cryptocurrency market is extremely changeable.
Forex Trading
In order to make money on bitcoins, you can apply not only to the services of exchanges, but also to such well-known services as Forex. Market participants will need to open an account with btc, which will significantly increase profits. Some professional traders also trade in ordinary currency pairs when opening an account in bitcoin.
Trading through Forex has a number of features, the main of which is that the bitcoin exchange rate is constantly growing. Despite the fact that it can change within 24 hours or several weeks, the trend has a tendency to increase. Unlike trading in regular currencies, bitcoins are traded around the clock. Trading activity remains high around the clock, so there are no trading sessions. Traders can apply technical analysis and standard tools such as moving curves, levels, etc.
How to play on the cryptocurrency exchange and make big money?
- At the first stage, it is necessary to go through the registration procedure and replenish the account with fiat funds. Traders will also need to go through a verification procedure, which involves confirming the identity and data provided.
- At the second stage, it is necessary to collect information about the rules and conditions of the exchange, view lists of orders, familiarize yourself with charts and analytics, and analyze trading volumes. It is important to trust your intuition, as well as periodically conduct fundamental and technical analysis.
- At the third stage, you can replenish the internal account on the exchange. The user can choose the most convenient replenishment method for himself. You need to be aware that large cryptocurrency exchanges do not provide the ability for users to replenish their balance through VISA and Mastercard. This is due to the fact that cryptocurrencies are not part of the banking system. It is important for beginners to consider that there is no leverage on the cryptocurrency market. It is also necessary to distinguish between such concepts as the "internal account of the exchange" and "wallet for cryptocurrency." The wallet does not belong to the exchange platform, as it is designed to store cryptocurrency. Such a wallet can be registered separately for each cryptocurrency.
- In the fourth stage, you need to choose a cryptocurrency for trading. You should pay attention to the trading volumes on the selected exchange, the popularity of cryptocurrencies, and the news of the financial market. Professional traders recommend forming an investment portfolio in accordance with the developed strategy. Money can be invested in several promising cryptocurrencies at once. This will significantly reduce risks and make a profit.
- At the fifth stage, you can place orders or acquire strangers. A beginner should arm himself with money in his internal account, knowledge and intuition to start trading. With the help of orders, traders fill out applications. On the main page of the platform is a form for orders. The trader indicates the cryptocurrency to buy and sell, the amount and its rate. Then you can click on the button for placing an order. As a rule, orders are accepted quickly enough and are displayed in the list of current orders. Also, the user can choose from the list of orders the most suitable and accept it. Therefore, the trader does not have to create a new order every time.
- At the sixth stage, an investment portfolio is being created. Traders should not rush and purchase a large number of bitcoins. It is important to pay attention to the dynamics of its value and act as prudently as possible. A trader needs to determine the main trend and place an order in the direction of the main trend. In a calm market and with low volatility, you can place orders without risk.
- At the seventh stage, you can withdraw funds from the exchange. To withdraw money, you need to specify the amount and click on the appropriate button.Then confirm the procedure. Different platforms provide their own conditions. Therefore, on some sites you can withdraw money in an hour, on others - only in a day. Failures also sometimes occur, and user requests freeze. The exchange charges a certain percentage for the withdrawal and replenishment of funds. As a rule, the size of the commission is not more than 5% of the total amount. Traders need to pay attention to exchange verification levels, cash storage technology, as well as rating.
The presented instruction will help answer the question of how to start playing on the cryptocurrency exchange and earn big money.
Rules of Success
It is important for market participants to learn how to correctly predict exchange rates. To do this, use technical and fundamental analysis. For some traders, the technical analysis raises certain doubts, since the results are limited by the high volatility of trading instruments. Also in such a market there is a small proportion of systematic events. Therefore, many traders are interested in how to learn how to play on the cryptocurrency exchange and earn a stable income.
Cryptocurrency rates are managed by disparate groups of players who can increase trading volumes at one time. News strategies are the most effective, so you need to regularly study thematic blogs and forums on the subject of cryptocurrencies. News in the media appears with a delay, so their relevance is nullified. The main movement on the cryptocurrency exchange is created by large participants trading in large volumes of funds. It is the groups of these participants that can conduct the correction of the cryptocurrency rate.
Brief conclusion
Novice traders should take the exchange as a kind of bank. The cryptocurrency market is not regulated. However, the more customers she has, the more reliable she is. If there are difficulties in the trading process, and a novice trader can not independently understand all the intricacies of such a market, you can undergo personal training. This article contains information on how to play on the cryptocurrency exchange from scratch with minimal risks for yourself.