How to Work and Earn by Trading Crypto?
The market of digital assets opens a large number of earning opportunities for traders and investors. Since crypto rates are volatile, they may change many times a day, which is a chance for a trader to profit from the fluctuations of market trends.
What is Crypto Trading?
Cryptocurrency trading involves buying and selling digital assets using a trading platform. Unlike traditional markets, cryptocurrency trading operates 24/7, allowing for continuous trading opportunities. The value of cryptocurrencies can be highly volatile, leading to significant fluctuations in price and trading volume. Traders use technical analysis and fundamental analysis to identify trends and make informed trading decisions. Cryptocurrency trading is often associated with high risk due to the volatile nature of the market, but also offers the potential for high returns. Popular cryptocurrencies for trading include Bitcoin, Ethereum, and Litecoin, among others.
Cryptocurrency trading is not about guessing when the price will grow. It is all about thorough research of all the aspects that impact market prices:
- Investors sentiment
- Overall situation with economy
- Level of inflation
- Crisis, caused by different words, events, wars, etc.
- News background in the crypto industry
- Updates on large crypto exchanges
Based on these and other factors, crypto investors do the following types of research:
- fundamental (assessment of external factors that are out of the crypto space)
- technical (technology of a crypto project, its benefits, application, etc.)
- qualitative (based on the previous analyses, investors calculate indicators and understand when it is worth to buy and sell crypto).
How to Trade Cryptocurrency?
Based on the analysis of all the mentioned factors, traders get an understanding of what cryptocurrency trading they should pick. Some strategies are used for short trades that may last a couple of minutes. For example, scalping. Some techniques imply holding crypto longer, for example, swing strategy means you buy coins and hold them for a couple of weeks, and position trading implies you hold crypto for months and even years.
To conduct trades on time, users apply automated trading bots. Those are programs that open and close trading positions without human participation. For example, you buy ETH and set the bot program for selling ETH when its price exceeds 2000 dollars, and the bot does it for you.
If you want to trade crypto, pick reliable and trusted crypto exchanges, for example, the biggest European exchange WhiteBIT. It offers relevant cryptocurrency live prices, safety for traders, advanced trading tools, and the opportunity to practice using a demo account.