Cryptocurrency trading review

Cryptocurrency trading review

Crypto-currencies became the main discovery of 2017 due to impressive return on investment – more than 4 times increased the main digital assets. Cryptocurrency virtual trading is therefore becoming increasingly popular among traders, more than 30% of which do not work with any other assets.Now there are more than a thousand different crypto-currencies, there are even special websites and programs with the help of which everyone can create their own crypto currency in a few minutes. But experienced traders advise first of all to concentrate on the main crypto-currencies.

Main advantages of Crypto-currency

• Security. All payments are protected and reliable, it is impossible to forge crypto currency.
• Openness. Any participant in the system can check the complete information for each payment, except for the personal data of the sender and the recipient.
• Simplicity and speed. Open a special purse for working with crypto currency is easier and faster than a bank account, all payments will also be processed faster.
• Lack of direct control. Neither the state nor the Central Banks can influence the amount of crypto currency in circulation and their value. Also, no one will be able to block funds on your wallet.

How to start trading in crypto currency: cryptocurrency trading rates

You can start the work in a few simple steps.

  1. Open a trading account.
  2. Download the trading platform, for example, MetaTrader 4.
  3. Make a deposit to a trading account for making transactions.

If you wish, you can also go for free training in trading with crypto currency to better navigate the digital gold market. In the course of short seminars you will learn the difference between the crypto currencies among themselves and what market events provoke the growth and fall in their value.

Getting started with bitcoin: cryptocurrency trading vs investing

To make the speculation profitable, you must choose liquid and predictable digital assets. Start learning better with bitcoin and lightcoin. These crypto-currencies are well predictable, because they are more difficult to manipulate.

  1. The first lesson is: use the Moving Average indicator to determine the direction of the trend. This tool allows you to easily determine the trend of the movement of a digital asset and, accordingly, make a profit. The rule of using the indicator reads: if the price is lower than the Moving Average, the rate falls, if higher – it grows. It is highly undesirable to open a position against the trend.
  2. The second lesson: pay attention to a glass of prices. This working tool is a table that indicates all the requests of other users for the sale or purchase of a digital asset. A glass of prices demonstrates the desire of speculators to trade in crypto currency at the rate of interest. Understanding the fundamentals of order movement in the table can help with determining the optimal entry point.

Trading on the stock exchange requires the beginners to learn basic indicators and trading instruments.

With what and how to start trading in crypto-currencies: cryptocurrency trading vs mining

Many newcomers who do not know how to trade on the stock exchange are wondering: where to start the digital asset? They also often make a lot of cryptocurrency trading mistakes. They believe that it is thus easier to earn crypto-currencies than to dive into the study of the details of trading. The answer to this question is unequivocal: nowhere! To produce crypto currency, you need powerful computers with expensive graphics cards, the cost of which is constantly growing. Independently to mine digital assets is unprofitable! This is only possible for large cooperatives, which create entire farms for the production of crypto-currency.

Cryptocurrency trading with leverage

Trade in “leverage” with leverage implies the use of borrowed funds for the acquisition of assets. This scheme of work allows you to increase the profit from each transaction, but with it the risks also increase. Consider how to take advantage of this opportunity to increase revenue and minimize possible losses.

So, cryptocurrency trading margin or trade with leverage is built according to a completely analogous scheme. The mechanism of trading with the crypto currency with leverage is simple: the user of the exchange gets the right to make transactions with a margin many times exceeding the size of the deposit. The usual size of the credit lever on most crypto-currency exchanges from 2 to 4, in the traditional currency market, it is possible to use the shoulder many times more. For example, if you deposit $ 1000 on a deposit, then with a leverage of 1: 3 you will be able to trade $ 3000. Accordingly, the risk increases in proportion to the size of the leverage. The trader’s own funds are not only a security deposit, with which you can raise additional funds, but also a guarantee of security. Even at the opening of the transaction with the maximum possible volume of the amount of loss can not exceed the size of the deposit. But the possible profit is multiplied by the size of the shoulder: the amount can be very significant if the trader has correctly predicted the price trend.

Cryptocurrency volatility trading

What is volatility? This is the variability of the rate of some asset. The calculation is based on the statistics of fluctuations in prices for past periods and expectations expressed in measurable units. In simple words, volatility is a reflection of course stability. The lower it is, the one or the other asset will be more stable. Accordingly, the higher the volatility, the less stable the course will be. Volatility can also be defined as the deviation of prices from a certain average.

Popular currencies exchange

For the purchase, sale and exchange of crypto-currencies (in other words, the digital currency), the network operates a special exchange. Accounts on them are anonymous and can not be frozen. Payments can not be stopped indefinitely or canceled. Today we will talk about the most popular and large crypto-exchanges.

  1. EXMO is a universal service that is actively used by more than 240 users. The Exchange team positions itself as professionals from different parts of the world. For us, the fact that Russian guys work there is important.An important difference between EXMO and other exchanges is that it works with both conventional and crypto-currencies. To see the course for all pairs, track the schedule for the desired period, you need to open the “Bidding” tab.
  2. LiveCoin.
  3. Bitfinex.