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What Does It Take to Become a Savvy Crypto Trader?

Get Into Cryptocurrency Trading Today Day trading isn’t for everyone, as there is a lot to consider before jumping in, but it is an interesting field. You need a game plan. And if you thought forex was dynamic, then cryptocurrencies have added some fascinating dimension into the industry.


Get Into Cryptocurrency Trading Today

Day trading isn’t for everyone, as there is a lot to consider before jumping in, but it is an interesting field. You need a game plan. And if you thought forex was dynamic, then cryptocurrencies have added some fascinating dimension into the industry.

Most forex brokers are now accepting cryptos, especially Bitcoin, for currency trading. 

Cryptos are a higher-risk trading tool, as they are pretty new, compared to fiat currencies. But once you get the hang of it, trading cryptos is fairly easy. So, should you jump in and start trading your hard-mined coins? Well, I think you should check out this guide first before you do that. 

What Is Crypto Trading?

Crypto trading involves buying and selling your coins through a crypto exchange platform, or speculating on currency price movement through a Contract for Difference (CFD) trading account.

Just like in forex, CFDs trading allows you to speculate on price movement before buying a specific coin. In short, you can go short (sell) if you believe that a crypto coin will fall in value, or go long (buy) if there is a possibility of a rise in the value of the underlying coins. 

So, what drives the prices of these crypto coins?

Like most trading markets, Crypto markets are also driven by supply and demand. The only difference is that cryptocurrency markets are decentralized and are usually free of political and economic factors. Here are some key driving factors:  

•    Media coverage: Usually, when a currency is mentioned in the news, what follows is an influx of traders focusing on that coin. This often triggers a rise in value. Savvy investors might want to profit from the coin, making other investors panic and engage in a rush sell, which might lead to a drop in value. 

•    Simultaneous volatility: The cryptocurrency market is associated with sharp rises and deep falls in prices. Interestingly, multiple cryptocurrencies tend to fluctuate in tandem. 

•    Coin idiosyncrasies: Different coins may also be influenced by their unique factors. For instance, if a big investor supports one of the cryptocurrency, it will likely gain in value. 

•    Integration: The extent to which a coin integrates into other popular infrastructure like e-commerce payment systems might make them more desirable. 

Typically, Cryptocurrency trading is ideal for investors who don’t mind trading with high-risk, high reward instruments. While there are several strategies that traders use to make their investment decisions, the two common ones are chart analysis and speculation. 

•    Speculation is when an investor thinks the price of a coin will rise or fall as a result of a specific event. It could be any of the above listed influential factors – for instance, a positive news story. 

•    Chart analysis is a strategy that involves studying historical price movements of a specific coin and then trying to predict how it will turn out. In most cases, a trade would monitor the price changes every few minutes, or even seconds. 

How Does Crypto Market work?

As mentioned above, crypto markets are decentralized. What this means is that they are not backed or issued by a central body such as a government. They also exist as a shared digital record of owners. Nevertheless, cryptocurrencies can be bought or sold through exchanges. 

What Else Should I Know Before Trading?

Now that we have touched on influential factors and the main strategies that traders use let’s also discuss the mental element of trading.

1. Accept Losses
As mentioned above, cryptocurrencies trading is a highly volatile activity. Some cryptocurrencies might not go as you planned. In short, you should be able to admit losses when they occur. Just take them as part of trading.

Even the pro traders have made wild losses in some of their trades. 
What you don’t want to do is chase losses. Some investors may be tempted to try to recover their losses by taking high risks. 

2. Volatility
Perhaps volatility is the one thing that differential real-world assets and crypto-assets. Here, volatility is when the value of an asset rises or falls rapidly.

It can be a great success for a trader who is selling at a hiked price, but it can also be a great failure for the person who bought a coin just before the sharp drop in value. 

In the cryptocurrency market, it is not uncommon for the price of a coin to move up or down by more than 10 – 50% on a given day.

For instance, in early 2018, E-Coin, then a relatively new coin, moved up in value by over 4000% in a span of 24 hours. Sadly, the coin dropped back to where it started. 

3. Short Losses
The good thing with currency trading is that you can set a price at which you will exit your trade or a stop loss. Let’s say you bought your Bitcoin at $9000, and you want to prevent a sudden drop in its price.

What you will do is set yourself a stop loss of, let’s say, 10%. So, if the value of a Bitcoin drops below $8,000, the system will automatically sell your investment at $8,100.  

4. Targets
Besides taking care of losses, you should set some targets. Basically, you should have a rough expectation of how much return you expect from your trading. Most currency traders look for quick gains, which is usually less than 1% per trade.

This strategy might work for traders with a heavy bankroll. But savvy traders are unlikely to risk more than 1% of their total money on a single trade. So, if your total bankroll is $1000, then you should never place over $10 per trade. 

Where Can You Trade Cryptos?

If you have already absorbed most of the above information, you can look for a suitable crypto trading platform.

To choose the right platform, you have to understand your trading goals – for instance, do you want to trade short terms or long term? You should also consider the reputation of the trading platform, Security features, insurance fund, commissions and spread, trading fees, and asset prices. 

With that said, there are a few better places you may want to give priority, such as the largest crypto exchange platform, Binance. Other notable platforms are Coinbase, Bitpanda, eToro, Coinmama, OKEx, Bitmex, Huobi, Bitfinex, and Kraken. 

Trading Cryptos via an Exchange

To trade cryptocurrencies through an exchange, you need an exchange account. Exchange platforms bring their own learning curve that you need to get comfortable with to make sense of the data.

Some may limit you on how much you can deposit. If you are a complete beginner in the crypto space, you can use a CFD broker account. This way, you can trade against a specified value without actually buying the coins. 

But before trading real money, try a demo account. Luckily, most crypto trading brokers offer free demo accounts, which let you test their interface, tools, and other features by playing with money. 


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Forex Trading Knowledge Questions and Answers

Forex Trading Knowledge Questions and Answers

Forex Trading Knowledge Questions and Answers

What Is A Demo Account?

Demo accounts enable new investors to test their ideas and learn how to use trading technologies without risk. Users can use the demo account to trade with simulated money and see what their returns would be if they traded with real money. Demo accounts are often used in schools and universities to teach investing and compete in trading competitions.

Demo accounts are commonly used by stock traders, currency exchange traders, and commodities dealers, but not by long-term investors. A demo account is less effective since the longer it takes to produce earnings from an investment, the more time it takes away from compounding real money.

 

How Does A Demo Account Work?

Using demo accounts, investors can practice trading on a platform without putting their own money at risk. You will not be exposed to the dangers associated with live trading platforms on a demo account. As a result, you can learn how platforms work without putting your money at danger.

A demo account guarantees that you will not lose money, but it also guarantees that you will not make money. To reduce risk when trading on the real market, traders must learn discipline and establish techniques.

How to Open A Demo Account?

In general, opening a demo trading account is pretty simple. Choose a Broker – Most brokers provide demo trading interfaces to help you become acquainted with the features and create techniques. Choose which broker to use initially.

Registration is necessary, and you must provide your personal information. Name, address, and financial information will be requested. Your identification will almost certainly have to be validated as well.

Once you’ve decided on a broker, you can install MetaTrader4. Once you have decided on a broker, you will require a trading platform. MetaTrader 4 and MetaTrader 5 are the most popular trading platforms.

You will obtain login details after registering with a trading program. You will be able to open an account.

How Long Do Demo Accounts Last?

Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.

Why Is It Necessary to Open A Demo Account?

Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.

What Are Advantages of A Demo Accounts?

Demo accounts are an excellent method to learn about various trading tactics and software. Paper trading is a lot safer way for a beginner investor to make technical mistakes than real trading. Investors can benefit from the customised trading software provided by each firm.

A demo account lets you to test methods without risking any money, whether you are a novice or an experienced trader. Trading on a demo account allows the trader to test the approach before trading with real money.

Even though many traders begin with equities, commodities and Forex can be profitable. The same strategies, however, may not be applicable in all three asset groups. A demo account allows experienced traders to experiment with several asset classes.

 

The Differences Between Demo & Live Accounts

A forex demo account is distinct from a genuine account in that it is utilised as a training account for traders to practise trading without putting real money at risk. Real accounts, on the other hand, use actual money, and traders put their own money at risk. A demo account enables users to trade with fictitious money in order to imitate the earnings they would receive if they traded with real money. Demo accounts are often used in colleges and institutions to teach investing and compete in trading competitions.

However, studies have shown that even if a person has obtained extensive trading expertise through the use of virtual accounts, things may turn out differently when real money is involved. Because you are not putting anything at risk  is more accessible when dealing with virtual money than when trading with actual money.

Can I have Multiple Forex Demo Accounts?

You may be able to open up to five demo accounts depending on the broker. Some, however, provide up to 19 demo accounts. There is no way to predict how many demo accounts are available at any particular time. All brokers do not limit the number of demo accounts.

If your broker has a demo account limit, you can contact their customer service via email or live chat to request more demo accounts.

There are brokers who will only allow you to open one account of each type per email address.

As a result, you are not able to establish any additional accounts until you give them with another email address or open a new account. Traders do not benefit from this practise because it requires them to spend their resources on opening new accounts rather than allowing them to open as many as they like.

In most circumstances, you won’t need more than five accounts, and depending on your plan, one may enough.

In any case, you should practise on a demo account until you are really proficient.

Is A Demo Trading Account Free?

Demo platforms are usually free. There is no risk of losing money because you will not be dealing with real money. As a result, there are no deposits, withdrawals, or training fees involved.

 

How to Choose Forex Accounts?

Different accounts have different settings. Before you open a trading account, you should answer the following questions:

How much money do you want to put down? You should keep in mind that trading with money you cannot afford to lose is not a good idea.

What is your level of risk tolerance? If you are a cautious trader, you can open a micro account and trade micro-lots. However, if you wish to trade more aggressively, you should open a regular account.

Do you require any specialised equipment? Many forex brokers provide their best trading tools to its professional clients, which may include cutting-edge news analysis or access to a diverse set of indicators.

Once you’ve determined what kind of trader you are, your trading objectives, and your risk tolerance, you’ll be able to choose which account is best for you.

Can I Take Money Out of a Demo Account?

Unfortunately, the answer is no. Demo accounts are only for practise purposes. You do not deposit anything because the account is not funded with real money.

As a result, any profits you would have made would be ineligible for withdrawal.

Forex Trading Knowledge Questions and Answers

Forex Trading Knowledge Questions and Answers

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AvaTrade introducing 3 new crypto pairs

crypto trading with Avatrade

AvaTrade introducing 3 new crypto pairs – updating 3 others

AvaTrade has yet again improved their cryptocurrency trading offering.

AvaTrade is introducing three new cryptocurrency pairs: NEOUSD, EOSUSD & MIOTAUSD in addition to the 15 crypto assets already on offer.

These new pairs have been available since July 1st, 2019 and provide an excellent opportunity to diversify your clients’ portfolios and increase their exposure to this vibrant 24/7 market.

AssetTypical SpreadLeverageMarginMin Nominal Trade Size
NEOUSD1.5% Over-market2:0150%10
EOSUSD2% Over-market2:0150%10
MIOTAUSD1.5% Over-market2:0150%10

To unify their cryptocurrency instrument labels, They are relabeling their existing Ethereum, Ripple & Litecoin instruments, by replacing the existing instruments with new USD labelled ones:

AssetOld SymbolNew Symbol
RIPPLEXRPXRPUSD
ETHEREUMETHETHUSD
LITECOINLTC_MiniLTCUSD

These new pairs have also been available since July 1st,

The trading conditions for each one is identical to those of the older respective assets they replace.

Effective immediately, new positions are only available on the new pairs.

Avatrade Clients will not be able to open new positions on the old assets, but those already open will remain unaffected until July 29th.

Existing positions on XRP, ETH and Litecoin-mini that remain open on July 29th will be automatically replaced with corresponding positions on the new pairs, , at the same opening price and at no cost to clients.

as any broker that values their clients would do , Avatrade makes sure that the clients will not be affected by the change.

Visit Avatrade NOW

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Neteller Launches Cryptocurrency Exchange Service

Neteller Launches Cryptocurrency Exchange Service

Neteller  one of the most known Digital fiat currency wallet provider , has started allowing its users to buy, sell, and hold cryptocurrencies including BTC, BCH, ETH, ETC, and LTC.

They do this on the large scale with a pilot in 10 countries and soon another 50 countries to join . They understand that if you do this effort it will only succeed if you can do this on a global scale.

Neteller and Cryptocurrencies

Neteller is a service which is operated by Paysafe Financial Services Ltd.,

paysafe

paysafe

founded in 1999, Paysafe Financial Services entered the market with the mission to provide an online alternative to the known traditional payment methods.

Most of the traders aiming us now neteller as one of the companies through which we made our deposits and if we had any profits also our withdrawals. A couple of years ago they left the Forex and Binary industry behind since the charge-back issue became just too expensive.

But as any companies knows, if you do not adept you die. The binary option market is all but dead and the Forex industry has moved also into the directions of the cryptocurrencies. thus, neteller understands that this is where the future is.

So Lasts week they announced that they are now offering a wallet with buy and sell cryptocurrency options.

As of today, Neteller users can buy, hold and sell cryptocurrencies via a recognized cryptocurrency exchange including bitcoin, bitcoin cash, ethereum, ethereum classic and litecoin, purchased using any one of 28 fiat currencies available in the Neteller wallet.

It may not seem so exciting but for many users that love this service it actually is. More and more currencies will be added making them an true exchange in the near future.

Now one is able to fund their neteller account through many different means (Mobile, Epay, Paysafecard, local bank deposits, and bitcoin)

We think that will make the threshold for many people, who would want to buy or sell cryptocurrencies, lower. This in return is a good thing for the overall acceptance of the cryptocurrencies in the mainstream of every day life.

Conditions for buying and selling cryptocurrencies through Neteller

The rates offered are somewhat in the lower middle of the current market making them go for the save route. The average market rates on the major cryptocurrency exchanges differ all in all not that much anyways, as this is not the main reason to choose to buy Bitcoin through Neteller

The minimum cryptocurrency purchase or sale amount is “approximately equal to 10 EUR,” the firm clarified, adding that the maximum amount depends on the transaction limits associated with each account.

When You open an account with Neteller you have to choose your default currency. This is of course for most people in accordance on their geographical locations, people in Britain will go for the pound most Europeans go for the euro and pretty much the rest of the work goes for the US Dollar, thou other currencies are available

The fee is 1.5 percent for purchasing and selling cryptocurrencies from wallets with EUR or USD as the default currency.

The fee rises to 3 percent for wallets with other default currencies.

Neteller  | Why is this a good move for neteller and one that we should expect from other online Payment providers as well ?

At this moment till last week Neteller users can pay, get paid on thousands of sites, and send money around the world through their system.

The company claims to have “millions of point-of-sale, ATM and online locations” for users to withdraw or spend their cash.

Last July 25, Paysafe ( which as you remember is the company that owns Neteller and Skrill)  announced that another digital wallet provider in its group, Skrill ( formerly known as moneybookers), started allowing customers to “instantly buy and sell cryptocurrencies, including bitcoin, bitcoin cash, ether and litecoin, using any one of the 40+ fiat currencies available in the Skrill wallet.”

We could now see that this was like their test run on this concept.

We do not know the numbers that Skrill produced since they offered this service but it must have been encouraging enough for Paysafe to include their flagship brand in this endevour.

We will see where this leads but we are hopeful that this is the next step in global acceptance to the cryptocurrency revolution. Let me know what you think

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