3 Basics of Cryptocurrency Exchange Trading

Bitcoin gives investors a huge trading potential. It is no wonder that more and more people are looking for ways to start crypto trading and want to know how to avail of this activity at max. If you are one of them, then this guide is for you. Here you will find useful info.

 

Key Facts

BTC Trading on the exchange has several big advantages over conventional trading:

  • Bitcoin is a global currency. It is not dependent on any state, which means that it can be considered independent to some extent. Of course, it is influenced by the events that take place in the world. For example, if a devaluation of the local currency occurs in some countries, then you can be sure that the Bitcoin rate will slightly change. The 2013 crisis had a huge impact on the value of digital assets. 
  • Bitcoins can be traded 7 days a week and 24 hours a day. There are no official exchanges that work on specific days of the week or hours. There is no official rate or official price either. All this creates just ideal conditions for trading;
  • Bitcoin boasts high volatility. The price has changed at a great rate over the past few months. High volatility also creates excellent trading conditions.

 

Trading Basics

What are the basic principles of trading on the cryptocurrency exchange? If you already have some experience in trading, then you most likely know the basics. All that is required from you in order to make a profit is to buy digital assets at a cheaper price and sell the units when the rate increases. Of course, there is a whole range of tools, tactics, and strategies for determining when it is the best time to buy and sell a currency.

The main components of any cryptocurrency trading exchange are as follows:

  • Graphics;
  • Buy and sell orders;
  • History of transactions;
  • Trading volume.

Using the charts, you can determine the trend (whether the value of the currency is going down or up). Orders are user requests to buy or sell currency. By the history of completed transactions, you can track what transactions have been carried out on the exchange recently and what instruments were used. By the trading volume, one can understand the volume of a cryptocurrency flow.

Once you know how to work with the above cryptocurrency components, you need to pick a cryptocurrency exchange to use. If you want to study the cryptocurrency exchanges 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 percentage that the exchange charge for the transaction;
  • Liquidity.

You should also keep in mind that all cryptocurrency exchanges are divided into two types:

  • Exchanges where Bitcoin and other assets can be exchanged for world currencies;
  • Exchanges where Bitcoin and other digital coins are exchanged for other cryptocurrencies only.

Keep these in mind when picking a platform to make trading operations and transactions.

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