Cryptocurrency has become especially popular over the last few years, as this is one of the ways of additional, and for some people an even primary source of income. Everything is straightforward: buy cheaper, sell more expensive. As well as an investment in the common currency.
Naturally, the instrument base and the principle of setting targets for trading are similar to the Forex market. Cryptocurrency market is available for trading 24 hours 7 days a week.
Essential rules for the cryptocurrency market
We recommend to get acquainted with the list of the central theses for newbies, and for many already familiar with cryptocurrency exchange traders.
- Greed is the main enemy of any trade. Do you wait for additional rise or fall unless the forecast convincingly tells about it? It’s better to be safe and stay on time or enter under existing conditions without waiting for the ideal option.
- Patience is a guarantee of profit. This applies to both tracking open positions and waiting for more convincing entry signals.
- It is imperative always to control the depth of the market. DOM is the primary source of information for any stock exchange.
- Volume and capitalization for the markets are key factors reflecting the sentiment of other players. Therefore, only knowing these characteristics, you can precisely predict the behavior of quotes.
Where to start?
Even on the largest stock exchanges, you will not get any technical support, forget about it. The web interface, through which the trade goes, is always buggy and has some delays, so the exchanges are regularly broken. Such conditions are not suitable for active trading, the maximum you can count on is 1-2 transactions per week.
That’s why it’s highly recommended to start trading with a brokerage company for newbies.
JustForex is one of the leaders where you start trading with cryptocurrencies as well as with other currencies.
Why should you choose JustForex for trading cryptocurrencies?
- You get a technical support 24 hours 7 days a week. However, if you trade on other platforms, you probably almost never get support.
- It is a reliable company which has been working on the market since 2012 when many stock exchanges are not so famous yet, and you never know whether you can trust them or it’s a regular scam.
- Exchange platforms may have some technical works pretty often, and the trading process can stop for several hours, while trading with JustForex never stops.
- You can practice by opening a Demo account and train yourself in cryptocurrency trading absolutely free.
- It’s much easier for a beginner trader to understand how the market works with fewer currency pairs.
Steps on how to start cryptocurrency trading
- Open a Crypto Account with JustForex
- Download Metatrader (it’s free) to be able to implement your transactions.
- Pass the identification, deposit your account and start trading.
We recommend starting trading Bitcoin. This currency is the most interesting one if we take into account the difference in exchange rate.
7 rules of safe trading with cryptocurrencies
These essential and fundamental rules of trading with Bitcoin and other cryptocurrencies will help the beginners do not stay in a loss. Many people want to trade and make millions caused by the explosive growth in the popularity of cryptocurrency and the abundance of news in the global media related to digital money. However, most of them are losing money just because they do not meet basic rules.
- Trade only with the money that you are not afraid to lose. Trading with the last money can’t be calm, confident and long-term.
- Buy cryptocurrency only when it’s falling and sell when it’s growing. In the long run, the crowd always loses against the backdrop of thinking independent people.
- Therefore, you need to buy before the growth begins, with a short or long-term fall; otherwise, you can fall into the trap of manipulators. So sell assets when the price reaches the second half of the anticipated peak.
- When it is not clear what will happen next and even a relatively minimum purchase can adjust the rate, it is better not to be included in the medium-term game.
- It is strictly forbidden to play in one direction for the entire bank. A purchase for the full amount available will take you out of the game instantly. For absolutely win-win trading, divide the bank into 4-8 different directions. This can be Bitcoin, Litecoin, forks, pairs or different currency units. In this case, the best option is to place orders with not more than 2-3% of the amount for each position.
- Write down all your strategies and orders.
- Never listen to what is written in the stock exchange chat. The vast majority of forecasts in the chat is formed on the basis of personal expectations or technical analysis, trends that most often do not work on a cryptocurrency exchange.
Take into account all the rules mentioned above, react to the market, be always up to date with the news and you’ll have good chances to make cryptocurrency trading the additional (if not the primary) source of income.
Igor Afa is a financial analyst with JustForex.