Home News PHOTOS | Features Of Cryptocurrency And How To Trade It

PHOTOS | Features Of Cryptocurrency And How To Trade It

Cryptotrading is the main way to earn money through cryptocurrency transactions. Earnings from cryptocurrency involves making a profit by benefiting from the difference in prices: buy cheaper, sell more expensive.
By the way, a betwinner kenya registration can please you with a steep profit. That is, the principle of ordinary speculation on metal prices, currencies, stocks is preserved. To make money, crypto traders can make short-, medium-, and long-term deals.
The goal of each of them is to earn as much as possible. Purchase and sale operations are carried out with the help of special tools and platforms called cryptocurrency exchanges.
As you already know, the first cryptocurrency was Bitcoin, which was described and launched by Satoshi Nakamoto in 2009. But the first platform to buy and sell cryptocurrency was Mt. GOX in 2010. In 2014, Mt. GOX filed an application to close its services – the reason was the theft of bitcoins from the platform. Since then, the concept of cryptocurrency and many virtual platforms have been created specifically for the exchange of decentralized currencies. They are regulated depending on the country of location.
Also be sure to read about Ethiopia Central Bank Bans Trading of Cryptocurrencies Vows to Take Action.
Crypto trading tools
Cryptocurrency trading usually uses the same tools and assets as classic trading, but they are tied to cryptocurrencies. One of them is derivatives – special agreements on future prices for cryptocurrency assets. When buying a derivative, neither you nor the other party actually owns the asset, speculation is about the rights to the contract. Depending on the terms of the agreement, the main types of derivatives include:
There is a way to protect yourself from the effects of cryptocurrency market fluctuations by entering into a futures contract. It guarantees that you will be sold a specific asset (cryptocurrency) at a fixed price and at a specific time in the future. It’s like asking the seller to “postpone” the goods until tomorrow, because now you do not have enough money. However, no one can guarantee that the price of this asset in the foreign market will not change – it may be much higher than the real one. One downside to futures: you have to buy the asset at the agreed price on the agreed date.
Futures can be indefinite – that is, you agree on a price, but not on the date of purchase.
An option is an agreement that gives you the right to purchase an asset at a specified price, but it is not necessary. That is, it is a future, the decision to buy which you can always change.
A swap is a double contract. You are sold a crypto asset if you promise to sell it back to the same trader on the same or different terms.
Liquidity is the degree of ability to sell a given cryptocurrency at a given price in the market, its availability. The more liquid the cryptocurrency, the more likely you are to sell it quickly.
Cryptocurrency volatility is an indicator that reflects the degree of change in price over time. The higher the volatility, the faster the price changes, and vice versa. Usually, the low volatility of cryptocurrencies is valued by traders more – because it allows you to predict price movements and possible losses.
Stop loss
A stop loss order means that an asset will enter the market and become available for purchase only when it reaches a certain price level. This helps the trader to avoid the possible risks associated with investing in cryptocurrency.
Contract for price difference (CFD-trading)
This derivative allows you to earn on market price differences, even if you do not own the asset. Under this contract, the parties may benefit depending on the movement of the asset price. The amount of such a “win” depends on the price of the underlying asset. To do this, you need to “predict” the price and open a trade order. If you believe that the price of a crypto asset will rise, you open a purchase called a long purchase. If you are sure that the price will fall – you place the so-called shorts position. You can’t choose absolutely any price of your purchase – you need to set at least the minimum allowed minimum.
Questions and answers
Why should you use such a currency?
This is a constantly evolving market. Provides security.
Can you make money on this?
Yes, but you need to know the subtleties.
What contribution is needed?
It all depends on your budget.


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