How crypto trading service works?
If you read this article, then you are interested how crypto trading works. But, before we proceed to the analysis of the concept of crypto trading, we want to warn you that you must be cautious and tidy in this difficult matter, because the market likes to destroy newcomers.
How to make money on the Crypto currency – crypto trading blog
To date, there are several types of earnings on the crypto currency – mining, investment and trading. The first two we will not consider in view of the complexity and increased risks. Trading crypto-currencies means opening of speculative positions on purchase or sale of a token of that or other digital cash. When investing through the exchange, one can earn only on the growth of the crypto currency, by trading through a broker you can increase your financial investments both at the expense of purchase and at the expense of sale.
Analyzing the current situation, crypto trading ideas
World stock exchanges (NASDAQ, TSE, FWB), previously expressed a desire to start trading futures for Bitcoin in 2018, stopped discussing this topic. Traders expected that the sites would become conduits for institutional investors’ capital into the crypto currency, through derivatives.
The World Economic Forum in Davos showed a common position of countries aimed at counteracting the anonymity of crypto-currency at the international level.
The availability of open source Bitcoin has led to numerous branches of the blockage copying the algorithm, diluting capitalization. But the main problem remained the low bandwidth of the network – 3-5 thousand transactions in 10 minutes. The growth of the crypto-currency led to an increase in the commission and the number of unconfirmed, “hung” transfers.
Without solving these problems, the Bitcoin price will not rise above $ 20,000, and the regulatory measures taken can bring down quotes. A vivid example is the situation in South Korea, where the authorities closed “local” exchanges for foreign citizens.
Against the backdrop of this negative, the market lost 50% of its capitalization, as this country accounted for 20% of the world’s crypto turnover. The ban on Bitcoin trade in China in 2017 led to a similar result.
The construction of the medium-term forecast in crypto trading service is based on the analysis of the prices of CBOE and CME futures, and the optional levels of the Ledger X site on Bitcoin. If the value of derivatives exceeds the spot, then this indicates a positive direction of the trend. The optional Put Call levels of the current month’s contracts in relation to the number of positions (Open Interest) indicate the possible range of quotes change.
How to Trade Bitcoin Cryptocurrency, crypto trading and taxes
At the time of writing the price of futures below the Bitcoin spot, options for February-March indicate a maximum market in the $ 12500-14000 area.
Short-term analysis is reduced to determining the entry point before the “pump” – injecting a large amount of funds into Bitcoin to cause growth. This scheme is used by Tether Limited, which produces the US dollar equivalent – USDT. Traders track the size of the issue of the token, buying BTC at its abnormal volumes.
Who is crypto trading broker
If mining cryptocurrency requires a lot of special knowledge, and for trading on the stock exchange requires experience, then for trading through a broker you will only need to open an account with a brokerage company. International broker AMarkets provides profitable trading conditions for both novice traders and traders who have many years of trading experience in financial markets via crypto trading chat.
The main advantage of trading crypto currency in the company AMarkets is that the broker provides a wide range of financial instruments – 15 Crypto-currency pairs and 8 major cryptocurrencies and crypto market trading hours. Financial experts often express their opinion about the increased risks due to the high volatility of digital cash, but the proper management of capital and the availability of trading strategies make it possible to turn the trade into a lucrative occupation. It is always worth remembering about money management and not risking more than 2-3% of the entire deposit for one deal. Guided by these rules, you can earn in the long run.
Choose only tested sites with high user protection. If the trading exchange does not include all the pairs of interest, you can use several of the most appropriate options. And then transfer funds between exchanges through transactions to internal purses. For example, to exchange cryptocurrency for fiat money, the CEX.IO exchange is best suited to solve this problem. It allows you to exchange popular altcoins and bitcoin for dollars, euros and British pounds.
Trading cryptocurrency provides ample opportunities for earning. You can start trading on the stock exchange with minimal investments, but for profitable trading you will have to make a lot of efforts and take time to analyze the cryptocurrency and the market in depth.