Fundamentals of trading with crypto and bitcoin on the exchange
- 1 The process of trading crypto currency
- 2 Benefits of trading bitcoins
- 3 Modern Exchange Crypto-Currency Exchange
- 4 Types of exchanges
- 5 The most popular crypto-exchange markets
- 6 Rules for successful trading btc
The 21st century is a unique era of new opportunities, rapid changes. In the life of everyone more and more different technologies penetrate, everything is actively computerized, literally in all life spheres one can meet the ubiquitous Internet.
Naturally, the financial sphere is also actively developing. In this case, after the emergence of various online currencies, the most popular of which was bitcoin (bitcoin), there was a real revolution. By analogy with conventional currencies, these funds are still highly prone to the course jumps. Such instability in their hands is for those who want to get additional profit, earning, for example, trading on the stock exchange.
The process of trading crypto currency
Asked how to earn on the exchange kriptovalyut, it is worth knowing details about this procedure. Today there are several types of work in the field of active trading:
- Classic trading, which repeats the usual strategies of foreign exchange, stock markets.
- Investment of funds at the start (before it) stage into a forex or fork.
- Use of PAMM-accounts.
- Use of all possible bitcoin derivatives.
- Arbitration between functioning systems.
Now the activity in the direction of arbitration has practically lost its relevance, despite the presence of an incredible number of automated programs. At the start, active work with forks is considered a fairly high-risk business, fraught with considerable opportunities and significant losses. In addition, the guaranteed success of such activities is possible with a clear knowledge of the best suitable strategy for trading crypto currency and the availability of current insider information, often questionable and even illegal.
Legal information on forks with the greatest prospects can be found at specialized forums where users can be attracted by a description of a particular coin. Due to the correctly issued, detailed information, certain coins start to acquire certain advantages.
Today, the main source of this kind of information is the bitciontalk.org forum, but when relevant information becomes widely available, its own relevance is lost.
Since newcomers have stable, serious work with significant volumes in the direction of forks, most likely, will not work, there is only a sphere of trading and work with all possible derivatives of btc. The simplest example of the second process is activity on a specialized platform MetaTrader4 with contracts for difference (CFD).
The process of activity in the modern digital currency markets is analogous to the standard currency, stock markets. An experienced trader will need to spend only a short time to study the existing features, after which he can immediately start working in new conditions for him. And the novice user at the same time rather seriously at risk. To get better quickly, without getting an impressive loss, a beginner in cryptotrading should first carefully study a couple of simple strategies, which you can try to use on the site of any of the functioning exchanges.
Benefits of trading bitcoins
The most important thing in trading is probably motivation. That is why it is extremely important to understand why trading on the exchange of crypto currency is profitable and promising.
Not being the official currency of any of the world’s countries, Bitcoin, therefore, is absolutely not tied to the economic, political sphere of a certain state. The cost of bitcoin can react to the widest spectrum of all sorts of events: from controlling various movements of capital in the interior of Greece to a sudden devaluation of the yuan in the PRC. The widespread general economic instability, a certain panic, caused the growth of the btc rate at times.
For example, in 2013 the Cypriot authorities decided to introduce control over open bank accounts. After this, a rather large percentage of account holders in Cyprus have their own views turned to the bitcoin that gained popularity, which caused an increase in its price.
Trading bitcoin 24/7
When trading bitcoins, which distinguishes it from the usual for many Forex, the Stock market, there are no official sites with a certain time of work, weekends, holidays. This is because now there is no officially established bitcoin exchange, its cost. This property is able to create quite good conditions for working with arbitration.
High volatility of bitcoin
Bitcoin today is known for the exceptional speed of change in value. Such an indicator of its volatility provides excellent opportunities for the active work of traders who trade on the exchange of crypto-currencies.
Modern Exchange Crypto-Currency Exchange
The modern exchange of digital currencies is a definite platform, dedicated specifically to trading, exchanging digital money of one type for other, or generally accepted world currencies. In addition to mining, which is the original way of creating various modern online currencies, such systems have become a direct way of obtaining them. It is also only possible here to exchange the available online funds, including btc, for real money.
Types of exchanges
Classification of a large list of functioning sites today is conditionally carried out on the most important criteria:
a market where exchange of bitcoins is available, the main types of forks for fiat money (global, national currencies);
system, where you can work only with bitcoin and forks, exchanging one type of modern crypto currency for another.
Forks are called digital money, which are derived from bitcoin. The implementation of active work is possible for various forks, but the exchange of most of them is available only at certain sites.
The most popular crypto-exchange markets
Today, experienced traders enjoy the most popularity of several functioning sites:
One of the largest in the generalized volume of systems. There is a list of three main pairs: BTC / LTC, BTC / USD, LTC / USD. By analogy with the standard stock market, there is an opportunity to implement the process of margin trading, to work without using margin, and also to engage in brokerage.
Its popularity is partly explained by the lack of the need to undergo mandatory verification in the registration process. To start the session, you just need to specify a personal e-mail address. The system provides lists of pairs of bitcion to fiat money, including the Russian ruble, the US dollar, and the euro.
The main and only pair of this system is BTC / USD. The site has a different commission for each transaction. The initial rate is 0.5%, gradually decreasing with the growth of realized / purchased volumes.
In this Chinese market, the work of an impressive number of pairs with a list of different forks is optimally implemented, together with the main CNY, LTC, BTC. In total, the list includes more than 35 pairs. Many active players, she attracts the widest range of forks used, as well as a relatively low commission threshold of 0.2%.
Active speculation is carried out exclusively online. It is distinguished by a significant list of pairs traded with forks. Of particular interest is the availability of information on the possibility of working with couples involving USD.
A bright representative of a functioning market, where you can work only with forks and bitcoin.
The exchange with which the active trade in digital currencies began. A couple of years was considered the largest site, attracting huge volumes of both real and online cash. Because of the emergence of security problems, lost primacy, but remains extremely popular.
It is designed to work with digital currencies, adjacent pairs with USD, EUR, KRW.
Also, the Chinese system, which provides an opportunity to work with BTC, LTC in pairs with CNY. It is characterized by its own software platform, functioning exclusively in Chinese language, all operations are conducted on it. In addition, registration will require the provision of identity documents.
Rules for successful trading btc
It is necessary to identify a list of the most important rules for trading in the current online currency market, allowing novice traders to stay in profit. Due to the constantly growing popularity of bitcoin, despite the existence of certain decisions of the Central Bank, a lot of people have a desire to make money trading these funds. However, the overwhelming majority of newcomers quickly lose their own money, because they do not adhere to the basic rules of implementing the workflow in currently functioning sites.
Trade should only be financed, the loss of which will not affect the financial condition. Losing money, especially which is not particularly pitiful, the user acquires some valuable experience.
Categorically, you should not invest in btc all your own savings, especially taking bank loans (you will have to give it anyway). Working with funds that are really “last”, a person is not able to be calm, confident, long-term. Accordingly, this will cause the adoption of wrong decisions leading to losses.
Adhering to these simple rules, as well as finding certain regularities in the work of the exchange, you can draw up your own trading plan, strategy. After this, it is required to begin honing in the existing real conditions, gradually shifting from small amounts to more impressive earnings.