Strategies To Make Money With CryptoTrading
Sign in

Strategies to Make Money with CryptoTrading

print Print email Email

The million-dollar question is figuring out when you should buy and sell. Unfortunately, there is no easy answer. Trying to figure out the direction that a cryptocurrency is going to take is difficult. There is no way you can be certain. You can learn the basics of analysis to help you out, visit here. These currencies will move because of certain factors.

An example is when a popular cryptocurrency ex-change announced that they would support Lite-coin, the price of litecoin jumped. These types of forces are what you need to watch if you plan on being successful with cryptocurrency trading. You have to stay plugged in, understand the way the currency works, and become familiar with their charts. Read more stragies to make money here 

Trading digital currencies on an exchange is a lot like trading forex. Your goal is to profit from the movement of a currency against another. You could be trading litecoin against USD or etherum again a different cryptocurrency.

If you are brand new to trading, trying to trade on Poloniex or a different exchange can get quite daunting. None of these exchanges have fantastic interfaces. Unlike stock trading or forex, there is no way to practice with pretend money, these exchanges don't offer that option currently.

Trade CFDs on eToro

It can get tricky if hold onto a lot of a single cryptocurrency. But it is possible to trade these digital currencies without owning any. When a CFD is traded, you speculate the price of an asset. CFDs are common.

CFDS have been a part of trading commodities, stocks, and other assets for a long time now. CFDs have started to pop up for cryptocurrencies. eToro is one of the first to offer CFDs.

They currently have Bitcoin and Ethereum. With a CFD, you have the choice of taking a long or short position. I thought the price will rise, you would open a long position, meaning buy. If you felt the opposite was true, you would go short, which means sell. This means that you are able to profit no matter the direction the asset takes.

You don't have to pay a large exchange fee when it comes to CFDs. There is typically a weekend hold-ing fee and you would pay a spread. The spread means the price difference between the sell and buys prices. You can also use Whaleclub. With eToro, you trade with fiat currency, like USD. With Whale-club, you trade only with a digital currency.

The only deposit choices you have is Bitcoin or Dash. The trading of the CFDs will work just like on eToro, the only difference is the base currency will be Bitcoin. You will have to get used to it, but the trading works much the same.

Buy and Hold

If you feel bullish about a digital currency, then holding it, and hoping that the price goes up, could give you a lot of returns. Holding is probably one of the best strategies for the new cryptocurrency user. Trading can become difficult and time-consuming. But anybody can buy some coins in only a few minutes. You need to remember, though, that there is always a risk, whether you're holding or trading.