To start cryptocurrency trading to make money, you need to know some of the basic fundamental tricks about trading. There have some cryptocurrency basic trading tools that you should know before start crypto trading. In my opinion about starting digital currency trading, you should learn advanced cryptocurrency trading tricks to avoid losing your assert. In this section, I will give you a cryptocurrency trading guide. This guide will help you to make money with cryptocurrency trading.
Cryptocurrency Trading Guide Step By Step
Here are I discuss different things to start digital currency trading to make a profit. In addition, I mention the use of different basic trading tools in this article. This extensive cryptocurrency trading guide helps you to make a disposition to invest in the cryptocurrency world.
In this article, I want to introduce some of the basic economics of cryptocurrency. Many of them are exceptional in the digital market. Also in some cases, you see abstracted from the general stoke market. Here I am going to explore some factors that change the crypto market behavior.
- Supply & Demand
- Market Sentiment
- Mining Difficulty
Cryptocurrency Supply & Demand
One of the most important cryptocurrency price factors is supply and demand. It makes a vital role to affect digital currency prices. The best example is Bitcoin because BTC supply is limited. At this moment, the Bitcoin circulating supply is only 17,417,600 BTC out of 21 million. So when you compare it with its peers, you understand the current BTC amount is very low.
So, this low supply and public popularity make extra demand on the market, that’s why the BTC surge in price. Therefore, supply and demand is an important factor of cryptocurrency price.
As per the utility issue, how is the popularity of a token or a cryptocurrency among the user? Moreover, what are the utility and use-case? It depends on cryptocurrency value on the aspect of usefulness. If it is seam too useful on the flock then it might be bought wisely. For instant, Ethereum is a useful decentralized application and allows people to build blockchain technology for a short app store.
A number of people believe It is a very useful medium of exchange. For this reason, Ehtereum is very popular and they gave a high value on it. Cryptocurrency trading guide token utility needs to understand.
Cryptocurrency Market Sentiment
It is sure as a digital currency investor, you will stop between multiple positions at a high trading frequency. So I think you should research well before starting a trading position on the market sentiment.
Read every day to get updates from the digital market to make any crypto investment. Current crypto news gives you a clear cryptocurrency market idea. Without understanding cryptocurrency market sentiment any investment fall in ruin.
One of the Crypto factors is mining difficulties. To add a block on the blockchain to get reworded. This reward is depended on the previous person how easy solves cryptographic mathematical solving.
Therefore, a high mining problem indicates the market supply is low and the price is high. On the other hand, fewer mining issues mean a lot of crypto supply as a result the market price is low.
Risks Factors of Cryptocurrency Trading
There have huge risks factors of cryptocurrency trading. Even cryptocurrency has huge advantages and many countries are issued legally in their region. It should be aware as a wise digital currency investor, there have involved risk.
Recently 2018 we have seen a breakdown of Bitcoin and ALT coin price. In many cases, cryptocurrencies are used for traditional bil, internet payment, and purchases. We have just pointed out some of the major risks of cryptocurrency trading.
Risk 1: Cryptocurrency Market Volatility
The price of digital currency declines sharply in 2018 that is well known to all. In January 2018 it already lost 80% of the value as per MVIS CryptoCompare Index.
That is really worse than the dot-com crash that happened in 2000. Old crypto investments are well known in history. The price has gone 78% down and binge historically in the crypto market.
One the cryptocurrency world Bitcoin price hike of $20,189 on December 16, 2017 — has barely broken $7,000 since April 2018. Not only for Bitcoin it happened to all other alt-coins. We have seen the crypto market several times.
- 2011: For the first time Mt. Gox hack and the result is a 95% loss of crypto markets.
- 2013: Perhaps another banking matter Cyprus saw 52% wiped off the value.
- 2014: Another time 2nd Mt. Gox hack led to a 63% loss.
- 2018: Cryptocurrency regulation and several cause price down 80%.
So it is really risk to invest in cryptocurrency and have change to lose everything you invest. In this view, smoothly I want to remember you as other crypto expert say You should never invest more than you can afford to lose.
Risk 2: Cryptocurrency Regulatory Issues
One of the top issues in the cryptocurrency market is government Interference and legalization. Two factors are the major issue in 2018. One is regulation and another is legality.
Digital currency is now asserted on the market. Govt: and bank are not properly formed a coherent fiscal policy for them. As a result, there has a lot of risk for taxation, trading rules, or even outright legality could change overnight.
So, it is more risk than the ordinary asset classes.
Risk 3: Number Of Altcoins
In the cryptocurrency market number of ALT-coin is available. But the difficulty is to understand actuality in which coin is stable or realistic. Investors are involved in risk from the random ALT-coin investment. On the existing crypto market, there are 1800 to 2100 random tokens or coins. It is not possible to figure out mainstream or potential coin selection.
A few of them are real-world examples. The interesting thing is most of the coin prices increase by speculating. However, still there have a lot of potentials to invest in the ALT-coin. As per CoinMarketCap Fifteen dominant market capital is about $1 billion and 60 have a market cap of approximately $100 million.
If you read a different coin white paper you might see a lack of activities. Many ALT-coins have dropped their value to zero. Every weak even every day new coins are entering into the crypto market and they are competing with each other. This is one of the risks involved. Moreover, there are many subjects that relatively involve those are below.
Consumer Protection: Honestly, the digital currency does have not any safeguard, insurance, or legalization.
Market Manipulation: Behind the crypto market a group of big investors is manipulating the market.
Exiting the Markets: A number of projects exiting from the market.
Cryptocurrency Scams: A new technology, there have many scammers involve on the platform.
Cryptocurrency Trading Tools
If you want to trade you should know about cryptocurrency trading tools. To analyze and research the crypto market, there have some tools that are most important. However, these tools give you deep insight to understand the cryptocurrency market to trade wisely. So read on.
The cryptocurrency market is always fluctuating with random news. So, where do you get the real and instant news? Well, I am going to execute this thing in this section. The Coinmarketcal cryptocurrency trading guide makes you a professional trader.
Coinmarketcal is one of the evidence-based crypto communities that is a fully free and far-fetched authentic news source. It will help to hold, buy and sell cryptocurrency or ALT-coin and give you a deep insight strategy for your coins. Personally, I use and make money by rumor and news from Coinmarketcal.
2. Crypto Portfolio tool
All the cryptocurrency trading guides assist you to pick the winning project with your own investment. So, the question is how you can manage this investment?
Some basic things you should know. For example, the number of units of the coin you have, and the total value calculation. Also, you need to know the current parentage of profit/loss. So, you need a portfolio tool. For example,
You should have an analytics tool that can help you to understand the coin’s strength. This tool also helps to understand bullish/bearish sentiment and other info. On the web, there are many sources of tools that can help you. Personally, I prefer Tradingview that is really awesome for the trader. This cryptocurrency trading guide analysis tool is really important.
Finally, I will continue with other resources that are helpful to trade cryptocurrency in the near future. In this cryptocurrency trading guide, I only mention a few of the trading elements.