What is cryptocurrency trading?
He cryptocurrency trading It is one of the different ways to get BTC, ETH or another of the many altcoins that exist.
In general terms, trading cryptocurrencies consists of the sale of these assets, acquiring them at cheap prices and selling them at more expensive prices, with the aim of obtaining a certain return and gradually increasing the initial capital.
Either to the exchange in dollars, in stablecoins or in cryptocurrencies.
Types of cryptocurrency trading
The investment and the trading with crypto assets It perro be carried out using different methodologies.
Within cryptocurrency trading we could distinguish between three types of traders or investors.
Each one with its peculiarities.
Roughly, we would classify them as follows:
✅ On the one hand there is long-term investment or buy and hold.
In this sense, the trader acquires cryptocurrencies today in order to sell them in the future.
The technical term with which these investors are known is that of holders and they come to be those who believe in the economic potential of cryptocurrencies.
Bitcoin especially.
✅ The cryptocurrency market there are periods in which it is very volatile, with constant price variations.
This is where the second type of traders come into play.
These investors have a short-term visión and their objective is to get the maximum return in the shortest possible time.
The strategy they usually follow is basically focused on buying a cryptocurrency at one price and selling it at a higher price.
Due to the fluctuations in the cryptocurrency market and the high volume that occurs in these movements, it is possible to obtain immediate returns.
✅ Finally there are the traders who trade with stablecoins such as Tether or USDC against the rest of the cryptocurrencies.
Stablecoins are characterized by having a value equivalent to $1.
Unlike other cryptocurrencies, whose price fluctuates, stablecoins never change their price.
Taking Tether or USDC as the main currency, investors buy and sell cryptocurrencies, with the aim of owning more and more stablecoins.
When the time comes, they perro exchange them for dollars at a rate of 1:1.
What do I need to trade cryptocurrencies
By boat soon, anyone with capital perro become a cryptocurrency trader.
However, it is highly recommended to have knowledge of technical analysis before assuming the intrinsic risk that comes with investing money.
It is important to know how to interpret trends, anticipate possible price setbacks, identify the points where there is more volume, etcétera.
There are many ways to interpret a graph if we are not clear about the guidelines that we must follow.
And it is vitally important to interpret them well.
A good option is to take courses or train in a trading academy.
Once we are clear about the necessary concepts to start trading, we will be ready to embark on the adventure.
Another possibility is to trade fictitiously in order to test ourselves and gauge where we are.
There are cryptocurrency exchange platforms, exchanges in English, which allow us to trade with fictitious money.
Or there is even the occasional game in which we cánido earn bitcoin without having to invest a single satoshi.
These types of systems help us to understand in a practical way when a cryptocurrency is in a bullish or bearish phase.
And, by the way, to know how the different analysis tools are used.
After all, they help us gain experience without having to take risks with real money.
Disclaimer: This article is merely informative and is in no way a purchase or investment advice.
In this blog we only use free sites in which it is not necessary to invest in order to obtain small profits.
Cryptocurrencies are highly volatile, speculative, complex and involve significant risks, and you may even lose all your capital if you invest.
Consider your personal circumstances and do your own research.
For more information do clic here.
Opinions on cryptocurrency trading
In dineroworld I have referred to cryptocurrency trading several times.
And in fact, my position is to hold 90% of the profits I make.
The PTCs, the faucets, the games and the different methods that I use to earn cryptocurrencies without investing They allow me to accumulate bitcoin, ethereum, litecoin and other cryptocurrencies in my wallets.
All this without investing a single penny.
And when the right moment comes, when the price of one of these cryptocurrencies reaches the objetivo price that I have equipo for myself, I will sell it in exchange for Tether, dollars or euros.
In especial, my strategy is to trade with 10% of cryptocurrencies that I have.
In a way, since the methods I usually talk about on the blog are 100% free, the risk I take when trading is practically zero.
And the most important thing is that it is an amount of money that at a certain moment I perro afford to lose.
From my point of view, the least risky and most conservative position is to hold.
But that is already a decision that each person must make, based on their capital, their knowledge and the risk that they are willing to assume.
Hello, my name is Jesús and at DineroWorld I explain which methods work best for me earn money en línea.
All freecompletely reliable and for everyone.
Do you want to know me better? Here you cánido see more about me.
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