"How to trade Crypto" - secrets of earning on new instruments
The future already came. The course of Bitcoin is discussed even by grandma on benches. The fact that crypto currencies have finally entered the economy is not well recognized even by deputies. But how do you make money from them? Mining is late, investments are extremely volatile. The answer is simple - trading, the only way to earn money on cryptocurrency and when it grows, and when it falls.
It is traders who can earn millions on the races of crypto at any course - at least high, at least low.
Bitcoin is the first and brightest representative of crypto based on blockchain technology. Here you can make an analogy with the US dollar as the main conversion instrument. On many services Bitcoin is the default crypto, that is, there is an automatic conversion into Bitcoin of other crypto.
As for security, the technology ensures transparency of transactions, as information about transfers between wallets is open to all, but does not give full anonymity. If desired, greater anonymity can be achieved by special mixers (transaction entanglement servers) and other methods that hide the physical address of the wallet user.
One of the main advantages of trading crypto currencies is huge volatility. Since we are talking about trading rather than investing, Bitcoin 's earnings strategy may well include short positions. In fact, Bitcoin can also be sold, and it can also be earned.
That the bubble will burst is inevitable. It is possible that this process has already begun. Once the bubble has burst, the rate will drop sharply. But, since a huge amount of infrastructure has been created (companies, exchanges, services, exchanges, etc.), that is, the rate will be low for some time, crypto currencies will remain, stabilize and eventually turn into growth.
Trading pluses cryptocurrencies
Trading is the best earning option on cryptocurrencies because we can earn even when the rate falls. When investors are in panic, traders are calm. One of the main advantages, as we have already discussed, is strong volatility. The very thousands of percent everyone dreams of when they come to forex, on ordinary instruments can only be achieved with a large shoulder. Here it is all available with moderate risks.
Also, classic technical analysis, book examples and well-known patterns work perfectly on crypto currencies. Since the tools are new, there are many inefficiencies on them, which, for example, have not been on popular tools like EURUSD for as many as 10 years. If you take any simple strategy, like trading at the intersection of a sliding one, it will work terribly on the euro, and on crypto currencies it is quite acceptable.
Since Bitcoin is now mostly a popular tool, that is, there is not yet a lot of institutional money, as on ordinary currencies, the strongest thing that affects the course is news. For example, China banned ICO (primary coin issue on the stock exchange), and this directly affected the rate of Bitcoin. Also, the strong appreciation of the exchange rate occurred after the recognition of Bitcoin by Japan. So the news needs to be followed.
Also, given the proximity to the people, strategies aimed at crowd behavior work on crypto currencies. It should be taken into account that one large sale/purchase can easily move the market. That is, any sharp fluctuations can be not only for fundamental reasons, but simply when a major player decides to enter/exit the market.