What is cryptocurrency trading Cryptotrading is one of the main ways to make money on cryptocurrency. Trading cryptocurrency tokens is not significantly different from trading precious metals, currencies and stocks. The main task remains the same: buy as cheaply as possible, sell at a higher price and make a profit. The main difference between cryptocurrency trading and the stock market is the high volatility of the exchange rate. Many traders dream of a return of thousands of percent on a deal, but in the stock market, such a deal has to wait for years, buying back shares of little-known companies in anticipation of their capitalization growth.
At the same time, fast trades with high profitability are not uncommon for crypto trading. Cryptocurrency trading: where to start? It is impossible to start successful cryptocurrency trading from scratch. Having decided to invest free funds in cryptocurrency trading, you should first of all prepare a knowledge base. For successful trading, a crypto trader must learn basic skills:
- analyze cryptocurrency and its trading volume;
- use charts and encodings;
- to conclude sale and purchase transactions; track trading history.
When assessing the viability of a cryptocurrency, you should pay attention to the following aspects:
- for what idea the cryptocurrency was created and how much it can be in demand;
- the speed of transactions and the convenience of working with tokens;
- professionalism of the development team;
- demand and popularity.
The combination of these factors provides an increase in the capitalization of the cryptocurrency and, accordingly, its value. The charts display the history of the growth of the token rate in relation to another cryptocurrency or fiat money. Charts can be drawn using the exchange interface, specifying a different period of time and choosing different trading pairs. With its help, it is possible to conclude how reasonable the current price is and to give a preliminary forecast for further changes in value.