The emergence of large assets contributes to the growth of Bitcoin’s value and many promising altcoins. Many investors understand that now, it makes no sense to take financial risks in an oversaturated stock market and are looking for an alternative, where to transfer part of the capital.
And such an alternative could be a relatively free, but promising cryptocurrency market. Skepticism about digital money is replaced by an awareness of its practicality and prospects, and many begin to look online for information on how to trade on the cryptocurrency exchange.
Basic Tools
Acquaintance with trading should begin not only with a cryptocurrency overview but also with essential tools, namely: what, why, and for what it is used. When opening a trading terminal on any crypto exchange, you will see approximately the same set of tools. It includes the following elements:
- Price chart for the selected trading pair. It clearly demonstrates the change in the exchange rate of a cryptocurrency in relation to another cryptocurrency or fiat (USA/EN dollar and other) for a certain period (day/week/month). All data is displayed in real-time, and you can see fluctuations in the rate of the selected asset up to hours and even minutes.
- Order creation form. To buy cryptocurrency or sell it on the exchange, different types of orders are used. Each has its own advantages and is applied depending on the trading tactics.
- The order book (stock market glass). The order book is a list that displays requests from users to buy or sell digital currencies. It displays price bids from participants, as well as volume (how much currency they are willing to buy or sell at a given price).
- Information on trading volumes. Trading volume is another influential predictive tool that gives a good idea of the liquidity of a traded asset. Liquidity, in simple terms, is the ease with which an asset can be bought or sold.
- History of transactions. From the name, it is clear that this tool serves to display all transactions made by users. It is displayed at the very bottom of the trading interface.
What Does a Trading Terminal Consist of?
The trading terminal provides the trader with access to the market. Any trading platform has in its arsenal a certain set of basic elements necessary for effective trading. On most exchanges, the trading terminal consists of the following work areas:
- Choosing a trading pair;
- Schedule;
- Order creation area (with order type selection);
- Application book;
- Trading volume;
- Open deals;
- Order history.
Beginner Tips
As in any business, to achieve results in trading with the subsequent exchange cryptocurrency on changelly.com, a beginner needs to start. On the one hand, the cryptocurrency market might seem quite tricky due to its high volatility. On the other hand, any price change (growth or fall) creates an opportunity to make money: it is hard to make a profit when the price remains the same. To reduce risks, beginners are advised to follow a few basic rules.
Keep a trader’s diary
Recording your successes and failures is not only excellent therapy but also an effective tactic. In case of successful trades, you will know which strategy worked for you and why. Moreover, the diary will help to identify where the mistakes were and not repeat them in future deals.
Trade only with funds you are willing to lose
Also, don’t take loans. If your experience turns out to be unsuccessful, you will not only lose what you could not afford to lose but also remain indebted.
Don’t trade the entire deposit
Don’t put all your eggs in one basket: if you drop it, you will lose everything. It’s the same in trading: in case of an unsuccessful deal, you will lose your money. To reduce risks, break the deposit into several parts and increase the volume of the transaction if the market goes in your direction.
Trade only liquid coins
Invest in the most liquid currencies, i.e. those that are easy to buy and sell. Simply put, the liquidity of an asset is the level of demand for it in the market. And the higher it is, the easier it is to sell the coin at a price as close as possible to the market one.
Adjust account security
- Get yourself a separate email, which will be used only for registration on the exchanges and nowhere else.
- Come up with a complex password and do not store it on electronic media.
- Immediately after registration, activate two-factor authentication, which will protect access to your account using a one-time random 2 FA code.
- Use other options to secure your account that the exchange offers: linking to a phone number, anti-phishing code, etc.
- If you notice suspicious activity in your account, immediately contact the support service to block your account.
Use a trading strategy
In digital assets trading, it is crucial to follow certain rules and remain calm (emotions only hurt here). Besides, there is no need to swap horses in mid-stream and deviate from the chosen strategy. In this scenario, it is more likely to make losses, not profits.
