Cryptocurrency has become one of the popular assets for financial investments in the modern world. Virtual money is traded on specialized exchanges and brings significant profits. To understand the whole process, it is suggested to study more information on https://velminatex.net/.
Trading rules
It is important to choose a reliable and proven trading platform. In modern history, there have already been cases of collapse of well-known exchanges, so choosing a reliable one will be the main condition. As for little-known platforms with a small number of clients, they should be avoided.
Among the rules that must be followed when trading cryptocurrency, it is worth considering:
- The exchange must have a license to conduct this type of activity.
- The trading platform must provide liquidity, that is, at any time tokens on it can be bought or sold at the price existing at a particular point in time.
- There should be no slippage in value, transactions must be executed instantly.
- It is necessary to get access to the platform, where cryptocurrency price charts will be displayed in real time, news and analytics will be provided.
- It is necessary to choose a reliable intermediary — a broker. He will take a commission for transactions, must send orders directly to the exchange. The broker has no right to dispose of the client’s funds. Only the trader decides when to buy and sell assets, at what price to do this, taking into account the market movement.
Also, the transfer of funds and withdrawal is carried out by the owner himself. He chooses the accounts, cards and wallets to which the transfer is made.
Tips
It is worth remembering that the cryptocurrency market is very volatile. There can be large fluctuations in the value of assets when the price changes by percentages, which can lead to large earnings or losses. To avoid risks, it is imperative to set stops, that is, specify a price below the purchase, upon reaching which the system itself will allow you to close the position. This is called a stop loss and allows you to avoid large losses.
To fix the profit, a similar method is used, it is called take profit, but the indicator is set at levels corresponding to the direction of the open position, that is, it is higher than the purchase price of the cryptocurrency.
It is necessary to decide on a strategy, analyze exchange fluctuations, set a goal and enter the transaction at favorable levels. You shouldn’t risk the entire deposit amount at once, or buy assets with leverage.
You need to study the recommendations of analysts and delve deeply into the process.