Cryptocurrencies trading – basic information
Technologies are increasingly penetrating into our lives and, of course, they could not help but touch the financial sphere. With the advent of the first crypto currency in the world - Bitcoin, much has changed. So, the concept of currency became different. An ignorant person finds it difficult to understand how to trade on the сryptocurrency exchange. Everything would be much simpler if the сryptocurrency had one course, however, it is constantly changing. Even over the past 2 months, BTC rate has grown by more than 100%!
Cryptocurrency trading' fundamentals
Bitcoin and other crypto-currencies gives investors huge potential for trading. So, every time this crypto currency gets into the wave of its discussion, the price goes up, and then, as a little hurricane around it fades away, its value sags. Of course, as soon as the price falls speculators (well, or investors) try to purchase at an acceptable cost to them, and then, when the price soars up - to sell. In fact, trading сryptocurrency is simple, you just need to understand it only once. Let's figure out why BTC trade is beneficial? BTC exchange trade has several undeniable advantages compared to the usual trading:
- Bitcoin is a global currency. It is not tied to any state, and therefore it can be considered in some measure independent. Of course, it is influenced by events that occur in the world. For example, if in some country there is a depreciation of the local currency or if Greece takes another loan, then you can be sure that BTC will change its course a little. The crisis of 2013 greatly affected the cost of BTC. It was then in Cyprus (a significant offshore zone) introduced control over bank accounts. Account holders decided to pay attention to BTC because this currency cannot be controlled;
- BTC can be traded 7 days a week and 24 hours a day. There are no official exchanges that are tied to time or have a weekend or public holidays. There is also no official course and official price. All this creates just perfect conditions for arbitrage;
- BTC is high volatility. Price over the past few months has changed at an astonishing rate. High volatility also creates excellent conditions for trading.
What are the main principles of trading on the exchange crypto-currency? If you have already met with trading, then, most likely, these fundamentals already know. All that is required of you in order to make a profit is to buy cheaper and sell more. Of course, there is a whole set of tools, tactics and strategies for determining when it is better to buy and sell currency.The main components of any exchange trading crypto currency look like this:
- orders for purchase and sale;
- history of transactions;
- trading volume.
According to the graphs, we determine whether the value of the currency is going to decline or rise. Graphs can be different in appearance. For example, some display changes at 15-minute intervals, and some changes occur once a day. Orders are, roughly speaking, user requests for the purchase or sale of currency. According to the history of transactions, you can track what transactions were conducted on the exchange recently and with what tools. By the volume of trade, it is possible to judge which mass of the crypto currency has passed from one source to another in a certain period of time.
Popular Currencies Exchange or Brokers
If you want to learn the Crypto-Currency Exchange yourself and find the one that suits you the most, then we advise you to pay attention to the following characteristics:
- Regulation and trust;
- Exchange location;
- The interest that the exchange takes from the transaction;
And also keep in mind that all exchanges for trading crypto-currencies are divided into 3 types:
- Exchange, where BTC and other cryptocurrencies and other forks can be exchanged for world currencies;
- Exchanges, where BTC and other cryptocurrencies and other forks change only to other crypto-currencies. For example:
- And brokers where you can buy cryptocurrency with a banking card and earn at the fall and rise of cryptocurrencies. For example IQ Option
Crypto-currency trading by Forex
In order to earn on BTC, you can not only use the services of exchanges, but also such well-known services as Forex. So, in order to earn BTC on Forex, you can go the following ways:
- Open an account in BTC. Of course, it's easiest to trade in dollars, however, opening an account in BTC for Forex can raise your profit enormously. Moreover, some brokers allow trading with ordinary currency pairs when opening an account in BTC;
- Trade in crypto currency at the exchange. In addition, to trade ordinary currency pairs, you can trade directly by the BTC.
Of course, trading BTC through Forex has several features. So, the main thing is that the BTC course is constantly growing. Yes, it can change during the day, a week or even a month, however, a trend that we can observe in the future is upward. And also when working with BTC on Forex, you can note the following:
- BTC trading is conducted around the clock, unlike currency trading;
- Technical analysis can always be applied, moreover, for trading on BTC, standard tools such as sliding curves, levels, and so on work;
- BTC is very dependent on news, especially about crypto-currencies;
- There are no trading sessions. Trading activity is stable around the clock.
BTC Forex trading involves the use of all possible tools. Moreover, it is a bid for the future.
The best exchanges can be called those that earned the trust of traders from around the world. And also it is worth taking a closer look at Forex, because it also allows you to use BTC as your currency. Be sure to approach the issue of trading the Crypto currency deliberately: study the analysis techniques, offers of exchanges and their commission, before trading on the Crypto currency and only after that start the trading process.