If you’re reading this article you have likely heard many stories about people that have earned fortunes on cryptocurrency trading and now you want to become one of them or at least understand what cryptocurrency trading is all about.
Well, it has to be said that most of the tools and principles of cryptocurrency trading are transferring from the classic stock market and thus Forex – soon there will be many solutions and tools for cryptocurrency trading. However, this is not the main thing you need to know. If you really want to get proficient in trading it is better for you to sign up for a blockchain course you can find on howtotoken.com, it would be the best idea for you as a beginner. If you want to get a brief information what you are going to face there read below.
The Main Trading Terms
Each participant of the exchanges daily faces such terms as:
- Closed deals report
- Stock trade value
- Sell, buy orders
Schedules are used to trace a currency rates within the last several weeks (hours, days, the period displayed can be customized). As a rule, the difference on schedules is clearly demonstrated with Japanese candlesticks. Your chances to earn or suffer losses while trading completely depend on your ability to analyze these candlesticks.
The Japanese candlesticks have several features:
- The body defining current state of a course. If at the time of opening of the auction the rate of cryptocurrency was low, and to closing of the auction it has increased this candle is called bull.
- The shadow indicating a maximum and minimum price at a stage of the auction.
Closed deals report is about the list of purchases and sales that were made during the given period. This is a data to analyze for you when you become more sophisticated trader.
Stock trade value refers to the sum of the deals made on the stock market. It is very important information that allows you to analyze activity on a specified cryptocurrency market.
Sell, buy orders form blotter. This professional term defines the list in which requests of all users for purchase/sale of cryptocurrency are collected. Within a blotter it is possible to choose the most attractive offer and to make the transaction, thereby having slightly modified the current rate.
How to Choose the Right Trading Strategy
The first thing you need to do in order to get to the choice of trading strategy is to learn more about cryptocurrency trading. It is better to pass the specialized courses, otherwise you won’t be able to make optimal decisions.
However, to start from, you can try the simplest strategy which is all about trying to predict the price change for this hour. Sometimes when the price rises or falls you can see that it is a trend that is going to last for a long period of time and you can bet on it making a sell or buy order.
This is a low risk way of trading if you close the order at the moment you start suffering losses and there is no margin trading implemented on it.