Cryptocurrency trading is constantly changing as new coins are released, and new ways to trade them are introduced. Even for experienced traders, crypto trading can often seem arcane and confusing. In order to profitably trade crypto, there’s a number of things you should know before getting started.
Professional analysts at Monfex have created a quick primer so you can read up on crypto trading, get educated, and start trading crypto today. And, once you’ve absorbed the key facts, you can head to the Monfex site, sign up for an account, and start trading with confidence.
Crypto Markets Don’t Close
Unlike traditional markets, crypto markets are available 24/7. That means that while trading volumes can change as countries wake up or go to sleep, there is never a pause in trading – you have to be ready to take advantage of swings and be aware when trends are not going your way and respond accordingly.
Cryptocurrencies are very volatile
While traditional markets like stocks or forex are relatively stable, cryptocurrencies can swing up or down by large amounts in a matter of minutes or hours. This volatility can be daunting for some, but for others, it represents an incredible opportunity.
However, lately, cryptocurrencies have been moderately stable, meaning that a crypto trader needs to be able to take advantage of both volatility and stability. One of the best ways to make money during a stable market is by using leverage, such as the 50x leverage offered by the Monfex trading platform.
Choosing a good broker is crucial
Choosing a good, reputable broker is very important. There are a few things to keep in mind when choosing a crypto broker: first, choose a broker you can trust. Platforms such as Monfex, with good, established reputations, are usually the best choices.
Then you should take a look at trading fees and leverage offered – marginal trading is one of the best ways to make a profit on crypto, and the more leverage and less fees a platform offers the bigger your profits will be. Finally, you may also want a broker with a large number of coin pairs to trade. For example, Monfex offers 12 coin pairs listing nearly all of the top altcoins for margin trading on both short and long positions.
Find the best places to get information
As with all trading, those with more information will be better positioned to make profitable trades than those who have less. As a result, figuring out which resources to rely on when making your trading ideas can be the difference between a win and a loss.
Trading platforms like Monfex offer a lot of help to their clients, from providing accurate and timely weekly news analysis to conducting a technical analysis to projecting market trends. Resources like the Monfex account on Tradingview.com are some of the best ways to get ideas for profitable trades, and Monfex analysts have great track records in projecting market trends.
Find a coin pair to trade and stick with it
Since there are so many different coins and different platforms offering different coin pairs to trade, it’s sometimes hard to settle on just one. However, choosing a single coin pair will limit your exposure to crypto in general, and allow you to learn the basics of crypto trading as you experience the ups and downs. Monfex is the ultimate cryptocurrency trading platform where you can easily trade 12 of the most popular and liquid cryptos in the world, such as Bitcoin, Ethereum and many more.
Crypto trends also tend to follow each other, and a slump or a rise in one coin can often signal changes in trends in others, such as Ethereum following Bitcoin. By following just one coin pair, you can test your trading ideas on only on the coin pair you’re trading now, but you can also see how you would have fared on other coin pairs as well.
Start learning Technical Analysis
Technical analysis is one of the key tools in crypto trading, and there are dozens if not hundreds of traders and analysts posting their own analyses every day, including Monfex. In fact, Monfex is an industry leader when it comes to high-quality technical analysis, and it has a proven track record to back that up!
Technical analysis is also more useful in crypto than fundamental analysis sometimes is because it is difficult to ascertain the value of a crypto token. In traditional securities trading, the value of equity depends on the future dividend that the issuer is expected to pay. For coins like Bitcoin, which don’t generate interest or earnings, it can be difficult to price. Technical analysis helps plug that gap by examining the psychology of the market, and can help you make good, accurate decisions.
These six tips will help you get ready to trade crypto, and start making profitable trades. By making sure that you’re following some basic principles, you can make informed decisions about the risk in trading crypto, and especially trading crypto on the margin. But, if your decisions work out, then you can also stand to make a lot of money. Join Monfex, the world’s premier marginal crypto trading platform, and start trading today.
Monfex is the ultimate cryptocurrency trading platform that offers to trade in perpetual (non-expiring) futures contracts on 12 of the most popular cryptocurrencies, thus ensuring high liquidity and ultra-low spreads! Monfex traders have the option to use up to 1:50 leverage, open both long and short positions, read high-quality articles published in the trading academy, and get insightful investment and trade ideas from Monfex on a daily basis.
Monfex’s Analytical Department: www.monfex.com
Official Telegram Channel: https://t.me/monfexofficial
Disclosure: This is a sponsored press release
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