One of the advanced investment tools in the modern world is cryptocurrency. Exchange trading of these assets is related to the risk zone and requires compliance with a number of rules. To succeed in this type of activity, it is suggested to find out more information on Velminatex.
Trading rules
The main platforms where cryptocurrency is sold and bought are specialized exchanges. They operate exclusively online, offering their services online. To gain access to the platform and conduct transactions, it is recommended to follow these rules:
- Determine a reliable exchange. It must be registered and licensed, operate for a certain period of time and earn a reputation among users. It is worth considering that there have already been cases of exchange collapses, which led to the loss of traders’ funds.
- Register on the exchange and gain access to direct trading. This means that all orders are sent directly to the platform, signals for buying and selling orders are executed instantly, there are no delays or slippage.
- Transferring funds to the trader’s exchange account and withdrawing them must be done in different ways. Usually, fiat and cryptocurrency wallets are used for this.
- Only the trader can manage the funds, the broker or the exchange do not have the right to decide which assets will be purchased and in what volume.
- To trade, you will need an intermediary called a broker. He takes a commission for the execution of transactions, and transfers them directly to the exchange.
Tips
The first thing to remember is that exchange trading of any assets is a high-risk area. The price of tokens can change quickly, the rise or fall can take significant amounts, which leads to significant losses if the trader makes a mistake in assessing the situation.
Therefore, it is imperative to use stops, that is, specify in the application the selling price above the purchase level and below it. The first option is called take profit and is used to make a profit, the second stop loss is necessary to minimize losses. The reverse transaction will be executed automatically when the specified indicator is reached.
Continuous analysis of events in and around the market is important. In addition to studying the charts of cryptocurrency prices, their technical analysis, it is necessary to understand the economic and political situation, know the news, statements of politicians and financial figures. These factors can also have a significant impact on the value of cryptocurrencies.
It is not recommended to invest in one type of token, or bet large amounts if you have little experience. It is worth studying the analysis of experienced experts, getting information from different sources.
