In very simple terms, Cryptocurrency Trading involves buying and selling of cryptocurrencies on a crypto exchange.
The idea is to buy when prices are low and sell when prices are higher – that way you make a profit. If you do the opposite, you make a loss.
The first thing to consider is the exchange on which you are trading.
Most crypto traders use Binance, as it’s one of the most popular and largest crypto exchanges by trading volume in the world.
For the sake of this post, we’ll use Binance.
With rapid growth in the industry, different kinds of trading are popping up and your choice will depend on your level of experience.
Some of them include spot, futures, margin, and options trading.
We’ll focus on spot trading today as the rest are more advanced.😊
But this depends on the kind of trading. In the spot markets, you can only make money when prices are going up
You may have heard that there are thousands of cryptocurrencies trading in the market.
Bitcoin is the first and the rest are known as Altcoins.
Our aim is to buy altcoins when prices are low using our BTC (bitcoin) or Ether (ETH), and sell them when prices go higher.
You know that cryptocurrencies are volatile instruments; so it’s not surprising to see them move up 5, 10, 20, 50%+ in a day or couple of days.
What this means is that if you enter a trade with a capital of $100 and it moves 10% in your favor, you just made $10 extra😊
With $1000, do you $100 in profit.
So, we're using our BTC as the trading currency.
That's what we use to buy those altcoins and sell back to BTC when in profit.
Note that we can sell for Eth or even stablecoins (we'll come to this)
Note that prices can equally move down.
The bane is the gain! If you learn how to use volatility in your favor, you'll make money trading cryptocurrencies.
Am Chris Bassi
#BiggestTalker_Online #cryptocurrency