The principle of the exchange’s operation is crypto-currency
- 1 Types of crypto-exchange exchanges where you can earn bitcoins
- 2 Principles, rules and main terms of exchange sales of bitcoins
- 3 Basics of valuation and analytics of operations in virtual currency markets
- 4 Price levels of resistance and support
- 5 The difference between crypto-currency sales and traditional exchange transactions
Exchange crypto-currency is the same platform for electronic sales, but not traditional goods or finances, but digital money. For example, bitcoins, which are sold, bought and exchanged for other digital money or for different world currencies. Exchange – a great way to earn bitcoins without investment, without additional and expensive mining.
In order to understand how to earn bitcoins, you need to learn the terminology and basic principles of the operation of exchange sites.
Types of crypto-exchange exchanges where you can earn bitcoins
Globally, stock exchanges are divided into two types according to such signs:
- On some, bitcoins and forks (fork – branch) are changed to fiduciary finances of world currencies.
- On the second – an electronic trading platform only for bitcoin and forks, exchange between them or change of one virtual money for others.
Principles, rules and main terms of exchange sales of bitcoins
The operations of exchange and trade on bitcoins are similar to those on traditional trading floors. The principle is simple: buy cheaper and try to sell more. As with investing in any national currency. The basic rules of trading are identical to the order of work on classical exchange markets. Earnings of bitcoins without investments in digital money markets can begin, owning some primary elements of business in stocks, finances and so on.
Basics of valuation and analytics of operations in virtual currency markets
Graphic history of exchange rate quotations, for example, bitcoin, in position to another crypto currency or fiduciary (from lat.fiducia-trust) finance. It is depicted by means of “Japanese candles” and displays the exchange rate of the correlation spread difference.
Spread is the difference in the numerical expression between the proposed best indicator for the implementation (ask) and the purchase value (bid) of the currency (for the time period). Such charts are very convenient for technical analysis of sales.
Japanese candlestick displays price changes over a period of time. Displaying the graph of one crypto currency pair is done in different time intervals, for example, 2-hour or 15-minute charts. This means a unit of time – either 2 hours or 15 minutes. One candle demonstrates the values that exist for a given time interval.
The rectangular body of the candle is constructed from the values of the beginning of the period and its end. If the opening moment is below the closing value, then the candle is called bull, has a red or black color. In the opposite version, the candle is bearish and the color is white or green. That is, with the bullish candle the rate increased and fell when the bearish.
Direct, coming from the candle (in the terminology of the shadow), note the maximum and minimum values that took place during the formation of the candle. If there is no shadow at the top, then “the top is cut off”, if the shadow is not observed at the bottom – “the base is cut off”. When in fact the body of the candle is missing, it is Dodge, where the final and initial prices are the same. The term “tops” refers to candles with the smallest body format.
Orders (sell, buy) – a number of orders to sell or buy digital money form a “glass”. Tabular list with positions from traders for the acquisition / sale of one currency-bitcoin for another virtual. money or fiduciary funds. But close in the amount to the price of the present moment (which is the bargain of this pair).In the screenshot, a typical “glass” in 3 positions of bargaining: exchange rate offer, the amount of the crypto currency for buying or selling at this rate and the amount of other digital funds or national currency.
Thus, readiness to trade bitcoin according to the declared rate is reflected. If there is a counter position to sell / buy, then the transaction is carried out, and the current price for a pair of trades is specified in favor of the executed transaction.
That is, with a warrant for implementation, counter-purchase items of equal value or more are sought. If there are no applications, the order is stored in the demand table or until it is canceled.
Another analysis of the market is made according to a glass of quotations. For example, you can calculate the current spread on a pair of trades. For this purpose, the margin between the initial values from the list is calculated: 23 694-23 439 = 255 rubles.
Volumetric orders in the glass give the possibility of forecasting the directions of the price chart. You see large purchase orders – expect rapid growth. Conversely, a voluminous selling order will quickly pull the rate down.
Orders are divided into:
- Passive, if they are declared at the desired price, and that will arise due to the fact of resistance or support. Such orders build the strength of resistance / support levels (sup / res). And in the moments when the exchange rate of the digital currency has approached the given level, it becomes clear whether it will overstep it or turn in the opposite direction. Decisive will be the ratio of a number of positions for buying and selling, the vigor of trading, if orders are announced only at the current exchange rate.
- Aggressive, i.e. intended for trading at this time at the current level. They are also called instant, because they are executed immediately upon receipt of a counter position. The lion’s share of the movement of the traded pair is made and kept in the schedule aggressive orders. After the execution of a voluminous aggressive order, a large exchange movement and connection to sales of a large number of passive orders can occur.
Price levels of resistance and support
The price range at the auction is constantly changing, thereby “drawing” the curve of motion. Where peaks and dips are seen, that is, the maximum / minimum values (extremes). Extreme extremes with a relatively large time interval are called significant (or absolute). Conditional straight line for a number of sequences min./max. limits the levels of resistance and support. These are the thresholds of quotations, on the values of which there are perceptible obstacles for the virtual currency rate, after which it makes a turn.
Powerful support levels exist where there is a large concentration of a number of warrants for implementation. Accordingly, the resistance level reveals itself by the presence of a significant number of sales orders. And the main goal of stock exchange players is the acquisition of a digital currency in the phase of exchange rate decline and the realization at the point of higher price indicators. The most profitable trades in the boundaries of the borders of resistance and support.
Analytical concept – trend (trend price movement). It consists of resistance / support parallels. The direction of the trend flow is characterized by the slope of the levels. The trend is upward, the upward slope means that trades with virtual currency pass with the preferential acquisition. And vice versa – for the downward. A lateral trend is possible with relative equality of sale and purchase, and on the charts resistance / retention levels are located horizontally.
The difference between crypto-currency sales and traditional exchange transactions
Traditional financial and stock operations are distinguished by the fact that the price movement of the price is quite measured, and in the bitcoin markets there is high volatility (volatility from English volatility). Exchange rate fluctuations can reach 50% or more in short periods.
For example, in 2013, the bitcoin rate grew by almost 5 thousand percent. Such a volatility in prices on traditional exchange trades is not observed.
But you need a lot of investments on the same stock exchange for profit. Then how to earn bitcoins on crypto-currency markets is possible with minimal investments. On the one hand, these are risks, but on the other hand, investing 5 thousand rubles in a couple of days you will get a profit of 50 thousand. The correct evaluation and analytics will give an opportunity to calculate the rate and earn bitcoins, and in the future not to lose on exchange rate volatility.