Some cryptocurrency traders can overlook about “traps” present on trading platforms. To be able to help beginners to prevent it and begin to make first cash from trading, in this small article I have listed the main tips for those who need to know how to bitcoin exchange.
- Theory. Prior to your initial deal on a trading platform I strongly suggest that you to get fundamental knowledges. Learn or inquire about Candlestick Chart (also known as Japanese Candlestick Chart), Order Book, Spread and Depth Charts. Additionally you need to know different sequence types. I can cover it in following posts.
- Cryptocurrency platform charges. Different trading platforms have different fees. Employing some of these you may pay a portion of every deal, utilizing other ones that you will cover earnings and result (payout) trades. Know platform rules before beginning use it.
- Technical analysis. Bear in mind, the technical evaluation relies on the info previously. Do not even attempt to forecast the upcoming cryptocurrency prices, nobody understands it.
- Arbitration. Some dealers may think that it’s quite simple to earn profit in the difference of their costs on two platforms. Yes, it might be possible but do not forget about hidden risks. The most important difficulty, during the procedure the market rate can significantly alter. You’re able to minify the danger if you’ll have fiat money and cryptocurrency on both platforms. There are few different problems like small available amounts for the price you’re considering orders performance flaws and transactions fees.
- Distribution. To minify potential dangers, it is far better to distribute your cash into various cryptocurrencies. For example, on your wallet you’ll have 40 percent bitcoin, 25 percent ethereum, 20 percent bitcoin money, 15 percent litecoin. Never sell all of your part from this supply.