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Trading cryptocurrencies is becoming more renowned these days. There is a large number of people who exchange digital assets each day to earn more cash. Significantly few secure trading platforms were available for individuals who wanted to trade cryptocurrencies during the early times. However, nowadays, there are many secure exchange platforms in different countries.
For an individual to start trading, they will be required to open and verify an account on a globally recognized trading platform. Beginners should understand that the account’s verification is required when withdrawing cash, whether large or small amounts. A beginner should start by researching the available reputable exchanges that allow residents from their area to swap digital assets.
One should check on the reviews of people describing their experiences using the particular platform. A more considerable percentage of traders who have verified an account prefers having another wallet on the side for keeping money for long-term savings. If a trader is planning to be exchanging their assets on the crypto platform for quick cash, they should keep some of the funds in exchange.
Market, Wallets, and Orders
Verification of an account allows a trader to start exchanging and trading cryptocurrencies on the platform if they have the funds. An individual with cryptocurrencies such as BTC and ETH can deposit the cash in the exchange’s wallet. Some platforms allow a person to buy and sell cryptocurrencies through the use of fiat. The process gives the individual a good experience using the platform’s dashboard and profile. Beginners should know how to activate the two-factor verification process and examine all the alternatives provided. Most platforms consist of a part where one can choose from, such as “orders,” “wallets,” “settings and profile,” and “markets.”
The “markets” section takes the trader to the platform and indicates all the cryptocurrencies and available fiat duos for trading. The “wallets” part shows all available addresses on the platform, and it is the section an individual can withdraw, deposit and store all assets allowed by the business. Awaiting withdrawals and deposits appears in the “wallets,” where they are scrutinized for confirmation. Initially, most platforms contain a confirmation period where traders await several confirmations before they can start swapping cryptocurrency.
The “settings and profile” section allows the trader to customize settings like email, user data, two-factor verification, and other significant information linked to the account. Besides, the section indicates the withdrawal limit and if an individual’s account is verified. The “orders” part helps the trader to find placed orders that are completed or unfilled. In some scenarios, some orders get partly filled, and it is an avoidable happening. The situation results from individuals bidding on a cryptocurrency at a particular price when they do not have good coins in that specific price that they can buy at one time. Moreover, the “orders” part also enables a trader to view their trading history n=and all the purchases and sales completed through the account.
Placement of an order on the cryptocurrency platform, buy or sell, is quite intuitive. For example, there is a conditional or limit order when an individual tries to sell 10 ETH on an exchange for USD. A limit order is a traditional purchase and sell, while conditional order requires one to meet specific circ*mstances for one to trade. In most cases, beginners usually select the standard order of limit while trading several cryptocurrency trades. The trader enters the amount of crypto they want to purchase or sell in the “quantity” window. Choosing the cash to sell or purchase is the next step, and the limit order consists of several choices.
The trader can sell the assets at the highest amount the market can pay for the assets; current “bid” price. Moreover, the trader can sell the assets at the lowest amount the market is willing to pay, the “ask” price. The last executed exchange price, the “last” price, is the final alternative that the trader usually has after trying the others. After finishing the order, quantity, and price type, the platform shows the total cost of trading, including the price it charges for swap execution. A trader can get a “time in force” alternative after confirming that all is well as far as their order is concerned.
The charts are used to show the market trends. The charting tools in the platform aids a trader to improve on their prediction of both short and long spans of cryptocurrency market movements. After the trader has made several simple trades and has familiarized with the platform, they may want to learn about technical indicators and charting tools. Some of the momentum indicators used in trading include the Relative Price Index, Stochastic Oscillator, and Moving Average Convergence/Divergence.
The Moving Averages involved in trading include both Exponential and Simple Moving Averages. The RSI measures both speed and strength of the market’s price volatility. This gives the trader some clue whether the market is “oversold” or “overbought.” A stochastic oscillator measures the current market momentum and gathers information on the asset’s resistance and support. Moving Average Convergence/Divergence is the other indicator related to RSI and stochastic, and it is used to measure momentum. The three indicators look similar on a chart and normally move in corresponding directions.
The trader should proceed and learn about Moving Averages on the charts. Some of the Moving Averages include Exponential and Simple Moving Averages. The Moving Averages gathers information in a short period to smoothen out a visualized look of both long and short-term tendencies. The trading statistics enable the Moving Averages to be set to every kind of information point.
This is done by creating a trend line of averages, and most traders chose 50, 100, and 200 averages. There are more tools such as Aroon Oscillators, ATR bands, Fractals, and Bollinger Bands. One can understand the basics of swapping cryptocurrency without necessarily learning about charts or technical analysis. Getting a feeling of using the digital asset platform and making several simple trades is the most recommendable way to start.
Bottomline
Trading cryptocurrencies can be very profitable if you follow all the rules. Remember, crypto trading is not a get-rich-quick scheme but a practice that you should nurture over time. As a new trader, you should avoid the urge to make huge investments and always start small. The financial market is quite risky, and the outcome sometimes is different from what you expected. The rule of the thumb is to invest what you can afford to lose. With all this said, it is now time to practice trading in real life. But first, you will need to select a trading platform. One reliable trading platform is Bitcoin Rush. Learn more about the Bitcoin Rush, and good luck in your trading journey.
Disclaimer: This article is not intended to be a recommendation. The author is not responsible for any resulting actions of the company during your trading/investing experience.
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