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  • Blog \ How To Trade Cryptocurrency

    How To Trade Cryptocurrency

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    Ilya Krupin
    CEO, HiCoTrading.com

    Imagine that you are crypto-enthusiast, which is armed with nothing more than bravery, money, and burning desire to become a part of the technophile community which uses the digital assets on a regular basis. We going to cover the significant and vital stuff for you – short and clear – so you won’t need to search for numerous articles over the Internet to understand how the things work here.

    The digital currencies are getting involved in our daily routine more and more, and the financial area transformation is undoubtedly within the inevitable future as the very definition of money has already been altered when the Bitcoin was first implemented into payments.

    You don’t need to be a millionaire to trade with digital assets. One of the advantages of crypto trading is that you do not need to invest substantial investments in starting the process of money earning in this area of activity. The rookie can launch his crypto crusade having roughly some $100-200 to buy digital assets and begin to engage in speculation using specific strategies. Anyway, it is best for a beginner to learn to trade cryptocurrency with a small amount invested, as many newcomers risk highly and have high chances to lose all their finances at all.

    So, the main questions for the newcomers are – how to make money trading cryptocurrency? This is becoming increasingly popular among those people who want to earn in the volatile crypto industry. Such type of earnings as trading has certain advantages and disadvantages. For example, the main point is the probability of high income during a short period. For instance, if you are lucky – you can multiply your deposit by ten times or more in just one day. As of the cons – there are high risks of losing all of your investments though. Moreover, one needs as substantial knowledge and a considerable amount of time for this. In case you have it, the knowledge of how to trade cryptocurrency can be acquired while getting a light but smart read – like this one.

    First steps

    So, how to start trading cryptocurrency? Get yourself a wallet and a digital asset. Undoubtedly, despite the market fluctuations, the Bitcoin is the #1 today, and it is unlikely it would change in future perspective. First – do not be greedy. Many people, seeing a chance to get a considerable profit, forget about all the disadvantages and risks of trading, trying not to play on this market, but start earning for a living.

    Anyway, it is best for a beginner to learn to trade cryptocurrency with a small amount invested, as many newcomers risk highly and have high chances to lose all their finances at all.

    Which cryptocurrency is better to trade with? Some exchanges will let you purchase specific cryptocurrencies for USD, but it’s a better idea to buy the top coin – the Bitcoin first. With some of it, you have full market access: you can trade on every crypto exchange and have most options. Remember: you don’t need to purchase a whole Bitcoin as you can buy it in fractions known as Satoshis.

    Now that you have some of the top coin, it’s time to find an exchange. Make your choice among numerous crypto trading sites. More than 300 exchanges are existing in the world nowadays, their number rose significantly during last few years: some are well-known, some have a worse reputation, and some have been shut down already — the Mt. Gox made the headlines all over the world some time ago.

    Exchange name Minimum amount for trading Fiat in/out support
    www.binance.com 20$ Fiat not supported
    www.okex.com 10$ Fiat not supported
    www.hbg.com 15$ Fiat not supported
    www.bitfinex.com 10$ In/out of USD 20$ or 0.1% min / 20 EUR or 0.1% min. */**
    https://hitbtc.com 20$ Fiat not supported
    https://bittrex.com 20$ In/out USD 20$ or 0.1% min 20EUR или 0.1% min. *

    *the main drawback is a min. entrance with a deposit of $ 10,000, $ 1000 if you get into the promo, too complex system and a process of identity verification, which can take time up to several weeks, as well as for some individuals information about them can be sent to the tax country of the resident.

    **To make a transfer from a Bank card, you will need to pass a full KYC on the exchange (can take up to 2 months), have an account or open an account in a Western Bank.

    In case you are determined to make money trading cryptocurrency, but not with long-term investment, you should choose liquidity as the primary indicator when making up a trading pair. Simply put, it is the trading volume for the next 24 hours. So it is simple: the more significant the trading volume, the higher the liquidity, the more participants and the amount of capital involved in trading, and – the smaller the chances of substantial players to drop the market.

    The high liquidity of the trading pair also means that you will have fewer chances to “become an investor,” that is, to remain with this coin in the event of a market fall. An essential tip for a novice trader is to learn to trade cryptocurrency by choosing a pair with a high volume. Later, when you get a real experience and market understanding of the market, to determine which cryptocurrency is better to trade and on which platform will be a piece of cake.

    Essential advice for those who start from scratch: choose a promising cryptocurrency that will potentially grow to the central coin (Bitcoin or Ether). In this case, even if its rate temporarily goes down, you can not close the deal, but wait, because a promising coin will necessarily show growth in the future.

    News from the crypto world is also essential when you are aimed at trading cryptocurrency for profit. The primary regulators of the cryptocurrency exchange rate at the moment are various news and events in the world of the digital economy. One positive news piece can instantly spur the growth cryptocurrency asset, increasing or decreasing its price drastically. The latest one can be remembered is the day BCH hard fork was commenced, Craig Wright wrote in his Twitter that he would sell a lot of BTC to win the race and increase the Bitcoin SV hashrate for $.  This message spreads fear, and other participants begin to sell BTC massively.

    Instruments and diversification

    The most popular trading instruments are BTC/USD and ETH/USD currency pairs. This is not surprising since the Bitcoin and Ethereum are the largest cryptocurrencies by capitalization.

    All the existing cryptocurrencies – and there are more than 2100 of them now, according to Coinmarketcap, – move in the risk on/risk off mode, so you will not achieve serious diversification: everything either grows or falls. But having some portfolio of crypto-coins still makes sense, because it is challenging to guess what could be the next Ethereum.

    A good tip for crypto investors is to store most of their money in the Bitcoin, and less part – in ETH, having left a tiny number for the altcoins. And as soon as you have bought these assets, immediately withdraw them to your wallet to avoid the risk of bankruptcy of the exchange. This is your emergency reserve in case of the blockchain revolution or something like this.

    Less reliability, but at any moment they can show growth for 100% and more. We keep the rest of the money in the cash in case there is a flat crash, to try to buy profitably at the time of panic.

    The main rules to follow while engaging in crypto trading are these: diversification, security, risk control, and money management. Following them, you will not lose all your money, and if you are lucky, you can see your income multiplied many times.

    Trading time

    Cryptocurrencies are traded 24 hours seven days a week, and it is evident that no one will be able to monitor them continuously. How to day trade cryptocurrency, you may ask?

    Day trading, whether in stocks or cryptocurrencies, is merely the act of buying or selling assets on the same day to take advantage of short-term fluctuations in value. Since cryptocurrency is a maturing asset class, markets tend to be more volatile, something which makes them attractive to many day traders.

    For example, in the U.S., the SEC and FINRA require that day traders maintain a minimum of $25,000 equity in their trading account. These rules do not bind cryptocurrencies — anyone can day trade – all that you need is a funded exchange account.

    To day-trade successfully, however, it’s essential to have some basic market knowledge and the appropriate tools. Algorithmic trading can help both beginning and advanced day traders implement their strategies with more efficiency.

    Using the right combination of bots, insurances, and safeties, newcomers can limit their potential risk by establishing tight trading parameters and eliminating emotion and irrationality.

    Do note that the primary volume of operations falls on the Asian session, so it is necessary to focus on the morning Beijing time of UTC +8.

    It is also worth paying attention to the American session, and increased activity may not be, but the leading suppliers of news and drivers for market movements are the United States and Asian countries (Japan, China, South Korea).

    Choosing a trading tool

    Plenty of different tech solutions are out there on the market, designed and produced to help you make money trading crypto. You have to be sure that you pick the right one which will increase your chances to win on these volatile battlegrounds.

    The HiCo Trading project team has created a promising, easy-to-use a

    nd necessary terminal to work with based on many years of trading experience.

    Moreover, It will no longer be required to use several applications at the same time – the available HiCoTrading functionality will make it possible to trade much more efficiently than before. Besides, our platform will be continuously updated and improved, which will undoubtedly provide its demand in the world market for years to come.

    You don’t need to be pro, which knows everything on how to trade with cryptocurrency wisely: We are going to exclude the question – how to trade with cryptocurrency – from the equation, by helping you use the most advanced and autonomous solution. Moreover, as the platform development progresses, the number of implemented services and features will also be increased.

    The vital tips

    We didn’t make the point to create cryptocurrency trading guide but to give you understanding how it all works. The security measures are also of great importance. So plan your moves wisely – and don’t get hooked on phishing! This is a significant step that must be performed by all novice traders. Be sure to get yourself a separate mail, which will be used by you only for registration on the exchanges of crypto-currencies and electronic wallets. And nowhere else!

    Finally, most basic thing, but essential thing to remember: good old rule of “Buy low, Sell high” – as the most appropriate time to buy a coin is after it has been dumped. We hope our advice article will help you make money trading cryptocurrency.