Trading Basics

Toxy · Geregistreerd op: 19 Jan 2021 Berichten: 8

The main principle of speculative trading is to buy cheaper, sell more expensive. Regardless of the specific strategy, users on crypto exchanges work according to such a general algorithm:

Choose a trading pair or a specific asset.
Assess the probability of continuation or reversal of the trend.
Determine the moment to open a deal.
Create a buy or sell order (in stock slang, this is called a long or short position).
Expect quotes to change in the right direction.
They close the transaction after receiving the desired income, or if the operation will bring an unacceptable loss for the client.

Long-term trading
A crypto trading strategy based on the expected increase in the price of an asset in a few months or years. Usually the analysis is carried out in this sequence:

The trader studies the most promising cryptocurrency projects. At the same time, the professionalism of the development team, technical documentation (white paper), and the practical benefits of the blockchain network are evaluated.
Based on fundamental techniques, the level that the asset price can reach in the future is calculated. In long-term trading, a margin of error of several percent is allowed.
The user buys a cryptocurrency and stores it on an exchange or personal wallet. In some cases, tokens and coins are transferred to investment projects to increase profits. These can be landing, stacking or farming programs.
As soon as the price has reached the desired level or the prospect of a further uptrend has worsened, the transaction is closed. Crypto assets are exchanged for fiat or other digital currencies.
Trading on trend
English-speaking crypto traders often use the saying: The trend is your friend. Translated into Russian, it means "Trend is your friend." It is believed that transactions against the dominant direction are more dangerous. The user hopes for a reversal, but a strong price movement can reset his deposit. Therefore, experienced crypto traders try to trade according to the trend. Indicators are usually used in such strategies:

Relative Strength Index (RSI). Allows you to estimate how fast the rate of a digital asset is growing or decreasing.
Trend lines and Andrews Pitchforks. They indicate the range of quotations within which the prospect of further growth or depreciation of the exchange rate remains.
Moving Averages (Moving Average, or MA). These mathematical formulas compare the current cryptocurrency price with past data.
A common mistake of beginners is trading according to a trend defined only visually. The user sees that the price of a token or coin is growing, and opens a position, hoping that these sentiments will persist.

Heridan · Geregistreerd op: 19 Jan 2021 Berichten: 8

At university, my friends and I started looking for information about cryptocurrency, which at that time was not so much. The question of how to buy bitcoin often popped up if there is no detailed information anywhere. Today, all kinds of articles have been invented. It will not be difficult for a novice trader to get acquainted with the information in more detail.