While many foreign currency exchange traders are simply feeling excited to earn money from crypto currency trading, many are feeling reluctant to work with crypto currencies. However, crypto currencies are nothing but the digital form of cash where strong crypto graphic is being used to ensure security of trading. A trader can simply feel security in trading digital currencies when he can work with regulated trading platform and with best trading actions.
It is important to understand that crypto market has several important distinguishing features (in comparison to the currency market).
First of all is liquidity - the lack of liquidity could make it difficult to get relatively large position. The second one is connected with the previous - the extremely high volatility. While the most of the currencies are moving inside the tight ranges, cryptocurrencies may create huge movements just because the lack of liquidity.
At the same time, there are many things that work exactly as at other markets - for example, the technical analysis. In fact, crypto market is something between currency and equities markets: you can analyse crypto project like companies and then trade crypto like currencies using the main principles of TA.
cryptocurrecy trading is a little bit tricky these being because the market requires you understand it in a more. you dont understand with crypto what might drive the currency, but for example , the occasional boost from well known people in the society, the other day Elon Musk said that he would bet on doge coins, and these drove the price of doge up by 50% thats what sometimes can be banked on on crypto trading.
Cryptocurrencies analysis are best done with technical analysis because there is no real fundamental analysis as we have e in forex, Cryptocurrencies are independent from any body so unlike the forex market. There is no interest rate cut it hike or any other news that moves the market. So going for technical analysis is more ideal for cryptocurrencies than looking for fundamental analysis.
Crypto currency trading could be extremely profitable...but it is very risky too. The volatility is huge, so you can easily get the substantial profit or the same loss. That is why risk management rules became extremely important. Most of crypto traders choose popular coins because it is easier to get best prices for them. These coins are also listed on numerous crypto exchanges, so it is possible to work with one that offers suitable trading conditions. By the way, trading fees could be very large (in fact, they are larger than for other markets like Forex or stocks), so it is important to keep this in mind. That is why active daytrading with crypto coins could be relatively difficult. So, long term play is really a great solution!
Volatility declined after 2017
So whats you thought now on crypto. As it become upcoming major development in business sector. And also complete analysis is required for trading not just invest and profit.Originally Posted by Abraham Chrils
Some people they that one day Ethereum would be as strong as Bitcoin, what do you think about it? It sounds like a joke for nowadays.
More types of crypto assets we have - more chances to make a profitable trade-in there would be.
I hope we would have more trustful platforms for that. It's not a secret, that crypto-related platforms become more and more popular, even if it's related not just to crypto, but to NFT sphere of business. I've seen couple of top nft collections on this TopNFTCollections.com site few weeks ago, and honestly, I wanted to purchase it and then resell them, so I could earn some extra money in this way.
Last edited by CraigTempo; 01-27-2022 at 05:13 PM.
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