"How to trade with cryptocurrency" - secrets of earning on crypto instruments. Part 1

The fact that the cryptocurrencies have finally entered the economy are reluctantly recognized even by the most conservative people. But how to make money on them?

Home mining no longer has an economic benefit, if you are not going to do it on an industrial scale, and then it's too late. Investments are extremely volatile and in general, the time for investing in the bitcoin, for example, has also passed. But here it is necessary to take into account the current price and the fact that the amount of bitcoin in circulation is limited, and according to estimates, the main bulk of the coins will be produced by 2034. So if you believe in blockchain technology and if now the currency will show any signals for upward movement, you have a good opportunity to invest in bitcoin at a bargain price and minimum until 2034, it definitely makes sense to keep these investments. But remember, this investment should be made for a long period while being prepared for fluctuations and sharp jumps in 30% -50% of the price and huge drawdowns.

But still, how to make money on a promising instrument right now? The answer is simple - trading, the only way to earn on the cryptocurrency either when it grows or it falls.

Traders are those who can earn millions on the jumps of the cryptocurrency at any of its prices - either high or low.

A bit of theory

In general, cryptocurrency can be considered as an analog of electronic money, the same as WebMoney or PayPal. The significant difference - the blockchain technology, which is the basis of the most cryptocurrencies.

The blockchain is an analog of a digital notary, where there is no single central server, as is the case with traditional electronic wallets. In fact, the blockchain literally means a chain of blocks, where each block participates in the transaction confirmation. In the bitcoin network, all transactions are irreversible and each network member stores a complete history of all transactions.

Bitcoin is the very first and brightest representative of cryptocurrency based on blockchain technology. Here you can draw an analogy with the US dollar, as the main converting instrument of the global financial market. Bitcoin is the US dollar on the cryptocurrency market and on many services it is the default cryptocurrency, that is, automatic conversion of other cryptocurrencies into bitcoin happens.

Regarding security, we can say that the technology provides transparency of transactions, as information about transfers between wallets is open to everyone, but still does not give full anonymity.

The advantages of crypto trading

Trading is the best way to earn on cryptocurrencies because you can earn even when the price falls. When investors are in a panic, traders are calm. One of the main advantages is a strong volatility. The very thousands of percent that everyone dreams about when it comes to the Forex, on ordinary instruments can only be achieved with a large shoulder. Here it is all available with moderate risks.

Also, the classical technical analysis, book examples and well-known patterns work perfectly on cryptocurrencies. Since these tools are relatively new, they have many inefficiencies, they are also called arbitrage, which, for example, is already 10 years away from popular instruments, like EURUSD. If you take any simple strategy, like EMA Cross, then it will work terribly on EURUSD, and quite tolerable on cryptocurrencies.

What cryptocurrencies to trade and where?

The main currencies are Bitcoin, Litecoin, and Ethereum. Also, large ones include Monero, Dash, Ripple, Zcash, Ethereum Classic. Before starting trading, every instrument needs to be studied and understood for its basic trends, which people, news and events affect the currency, where you will keep track of this news, etc. The main thing here is not to rush into the deals, if you are a novice, and to study the basics for a while. You do not have to jump into unknown currencies. Remember: the one, who owns the information, owns the world.

Trading in crypto exchanges is a separate and not always a pleasant experience, and even with a high risk. It is much easier for ordinary traders to trade with well-established Forex brokers, because, like most, the traders themselves do not need bitcoins. Total costs in this approach are often lower. In this case, you get a fully-functional trading terminal, fewer risks of losing money and many ways to deposit and withdraw them.

In the second part of the article, trading strategies will be considered that work well on cryptocurrencies, as well as important features of money and risk management.

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Posted from my blog with SteemPress : https://coinatory.com/2018/09/17/how-to-trade-with-cryptocurrency-secrets-of-earning-on-crypto-instruments-part-1/

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