Cryptocurrencies have gained mainstream popularity due to the innovativeness of technology. But it is hard to deny the fact that many investors pay attention to them, first of all, as a financial tool for making money.
There are many ways to make money from cryptocurrencies. One of them is cryptocurrency trading. If you are finally ripe for serious financial affairs and have some start-up capital, but don’t know where to start your career as a cryptocurrency trader, then this article is designed especially for you.
How to trade on a cryptocurrency exchange
In order to start trading cryptocurrency, first of all, it is necessary to determine the convenient cryptocurrency exchange and get some crypto. StormGain is among one of the safest and secure platforms to exchange cryptocurrency. After opening an account on a cryptocurrency exchange, first of all, one should determine the preferred trading pair and choose the optimal entry point to the market, in other words, purchase a cryptocurrency at the most favorable price. To do this, a trader can monitor the market independently and make an instant buy deal (market order) or place a limit buy order. The trader specifies the value of the order at his discretion based on how he sees the price in this trading pair in the future.
StormGain is among one of the safest and secure platforms to exchange cryptocurrency.
What is cryptocurrency trading
When trading, all traders try to make a profit. Often, when they buy cryptocurrencies, they want to sell them later at the most favorable price. At its core, playing on a cryptocurrency exchange is not much different from other types of trading. Making a profit from trading digital assets will not be too difficult for those who are already familiar with the principles of trading other financial assets or regular money on Forex.
In crypto trading, the trader’s task is to find optimal entries and exits from the market. Formally, the basic principle of trading can be formulated as “buy low, sell high”. To do this, a trader must first understand how the value of cryptocurrencies is formed and what factors influence it.The cryptocurrency market is characterized by high rate volatility. First of all, it is necessary to understand that the rate of bitcoin and other cryptocurrencies is formed by supply and demand in the market. It is influenced by both traders and speculators.
The small fluctuations in the value of coins are often the result of trading by the big players. Traders intentionally rock the market a bit to make their profits when the market is relatively dull. Novice traders can also use these fluctuations to make profits. Investors who buy coins for the long term, as well as those who buy cryptocurrencies not to sell them later,and as a payment for services also affect the cryptocurrencies exchange rate.