Cryptocurrency trading basics

Successful trading of any asset has one formula: buy cheap, sell expensive. Cryptocurrencies are no exception.

If you ask Google how to buy bitcoin, we get a million ways, exchangers, sellers, fraudulent sellers. And it's safe to say that 90% of search results will lead to the maze of fraudulent schemes and scams.

Most cryptocurrency exchanges do not support trading in fiat (regular money. - DeCenter), so you have to enter already pre-purchased cryptocurrencies on the exchange. For convenience, we will work with the most common cryptocurrency - bitcoin.

Proper trading starts with knowledge. Knowledge of how, where and when it is best to invest. In the cryptocurrency market, it's worth adopting this as well. You choose a coin you are interested in, decide on position for purchase, set the approximate targets, when you reach them, you can fix profit, and start earning. There's nothing complicated, but it's just a matter of figuring out the practice. A great platform to help you get into trading and start making good money is bitcoinup.

The price moves according to special laws, which are drawn by human psychology. Some are afraid and sell, while the brave buy and wait for a chance to sell. For understanding, it is worth noting that the buyers on the stock exchange are called bulls, they push the price up, and the sellers - bears, they reduce the price.

Here is an example. We know that many projects now raise money not through traditional investment and issuance of securities, but through ICOs. And we also know that ICOs are usually based on Ethereum. To understand the dependence of psychology and the market, we can remember the situation in early summer 2017, when the ether rose almost 500% in just one month. That's what demand means. Developers announced support for an interesting feature, the community supported them. In turn, this favorable news had the strongest impact on the public, people began to frantically "jump" into the last wagon and push the price up, until they came to their senses at the $400 mark per ether. As soon as the market realizes that at the moment the price is unreasonably high for this asset, sellers do their business by selling all their coins. It's nothing short of human emotion that moves the market. They see a rush, hear the news - they run and take them at any price. As soon as someone loses a large share of the market, the society immediately catches up with the wave and rolls down to the reasonable limits. These limits are called support and resistance levels.

Despite the seeming simplicity, it is very easy to get confused and lose your temper in the market. Panic and greed are not an option! Only a sober calculation and a thorough plan. The rest is roulette.

- You should not sell apartments, cars, houses in order to have time to buy bitcoins. Also, be sure to remember that you have to work with a sum of no more than 30% of the deposit. Then you will live quietly and be able to survive the market ups and downs, being able to buy more if possible.