After acquiring your first bitcoins, you will want to exchange your digital asset for another token or try to quickly make money on one of the many crypto-burgers. Although you do not need to be an expert to start cryptocurrency trading, some want to know the basics of starting.
Acquaintance with the reputation of a cryptocurrency trading platform and registration on the stock exchange
Cryptocurrency trading has become very popular these days, and there are a huge number of people who exchange digital assets daily to make more money. At first, there were only a few trustworthy sites that were available for people who wanted to exchange cryptocurrency. But today there are a huge number of respected exchanges in most countries.
To start trading, you need a verified account on one of the many global digital asset exchanges. Beginners should be aware that most sites require the user to verify their identity for fiat currency, some companies also adhere to this rule for withdrawing large amounts of digital currencies.
If you are new to crypto-trading, then you should explore the many exchanges that allow people in your region to exchange digital assets. Be sure to make sure that the selected site is respected. About most cryptobirds, you can find reviews where people describe their experience of interacting with one or another platform. After going through the verification process on the stock exchange, most traders prefer to keep a non-custodial wallet for long-term storage of assets elsewhere. If a trader is going to wrap assets on a cryptocurrency platform to earn a couple of hundred quick dollars, keeping funds on the exchange for some time will be the perfect solution. But most experienced players know, and newbies should remember: “If you don’t keep your private keys, you don’t own a cryptocurrency.”
Sites, wallets, applications
After the trader is verified on the exchange, he needs some funds to start trading. If you already own popular currencies like BTC, ETN or BCH, you can deposit funds in the Wallet section of the selected exchange. Some exchanges allow you to buy cryptocurrency and sell coins using fiat money. This is a good way to feel the exchange toolbar and user profile.
New traders should study how two-factor authentication is activated on the platform and review all available options. Most exchanges will have several sections similar to something like “Markets”, “Wallets”, “Tinctures and Profiles” and the “Orders” section. Selecting the “Markets” option takes the user to the exchange and shows all cryptocurrencies and trading pairs available for transactions on this platform.
The “Wallets” section shows all the wallets available on the exchange, here you can deposit, withdraw and store your digital assets supported by the site. Usually, in the “Wallets” area, users find the expected deposit and withdrawals, which can be checked for confirmation. Traditionally, most exchanges have a confirmation period when the trader must wait for a certain number of confirmations in order to start trading in cryptocurrency.
"Settings and Profile" is an area where the user can configure settings such as two-factor authentication, user information, email address, and other important account information. This includes information like passwords, API keys, interface settings, and so on. The "Settings and Profile" section also shows whether the account is verified or not, and withdrawal limits. In the "Orders" area, users will find the orders they have placed, outstanding or completed.
Sometimes applications are partially fulfilled, this is a natural case that arises if you offer cryptocurrency at a certain price, and there is a shortage of coins at a price you set. In these cases, the exchange may fulfill part of your order. As a rule, in these cases, if more coins appear at the same price, the exchange fulfills the remainder of the order. In the "Orders" section you can find the history of transactions, all purchases and all sales that have been completed on your account.
Placing applications on a cryptocurrency exchange, whether buying or selling, is quite intuitive. For example, if you want to buy 10 ETH on the exchange for US dollars, this is usually the limit type of the order (default) or conditional order. A limit order is an ordinary sale or purchase, and a conditional must meet certain conditions in order to be fulfilled. Most beginners choose a limit order for the first few crypto transactions. In the “quantity” window you would enter the 10 ETH or the amount of cryptocurrency you want to buy or sell. After that, the price at which you want to sell ETN is selected, and the limit order consists of several options. The user can sell the asset at the current price of the "offer", which is the highest price on the market, which they are willing to pay for this coin. Then there is the price of "demand", which shows the lowest price that the market is willing to pay for the coin. The last option is the “last” price, which is actually the price of the last executed deal. Of course, the user can set the price the way they want, but usually beginners choose between these three options.
After setting the type, quantity and rate, the exchange will show the total amount of the transaction, including the exchange commission for exchanging. After confirming that everything looks correct, the trader can also set the “action time”, which by default is set to “correct before cancellation” and can be replaced with a specific time frame.
The Markets page should show you all the choices available for orders, including current market orders, user history and trading history. This page most likely contains a depth chart, which is a graphic representation of the current book of market orders, a recorded log of the book of orders and a custom trading chart that shows the cryptocurrency characteristics. Order books and a set of charts in different time periods give the trader some insight into current market sentiment and can show whether the market trend is bearish or bullish.
Charts, tools and indicators
With charts showing trends, certain instruments available on the exchange can help a trader to better predict short-term and long-term movements of cryptocurrencies. After getting acquainted with the exchange and a few simple transactions, you may want to learn about some technical indicators and graphical tools. For example, the Relative Strength Index (RSI) measures the strength and speed of market rate volatility. The RSI gives traders some insight into the oversold or overbought market. The RSI indicator sister is a stochastic indicator that measures the current market dynamics and collects data on the support and resistance levels of digital assets. Another relative of these two indicators is Moving Average Convergence / Discrepancy (MAC). This particular indicator consists of two exponential moving averages and is also used to track market dynamics. These three indicators often also add to the charts and track their movement in the appropriate directions.
The next piece of knowledge about market dynamics indicators is moving averages and all of their types in graphs, such as "exponential moving averages" (EMA) and "simple moving averages" (SMA). Moving averages collect data over a number of time periods to smooth the visual appearance of long-term and short-term trends. Moving averages can be set for all types of trade statistics data points, creating average trendlines, most traders consider moving averages for 50, 100 and 200-day periods. Indicators of market dynamics and moving average trends are separate basic concepts of technical analysis, which use many more tools like Bollinger lines, ATR lines and trailing stops, fractals, medians and Fibonacci levels.