Has the Coronavirus closed and you feel like increase your cryptocurrency trading? There are a lot of tips for traders, the golden rules of cryptocurrencies and so on out there.
This article is not an attempt to bring them all together here. It's very difficult to give recommendations that work on all occasions, but we wanted to offer some general rules that will help merchants navigate the sea of cryptocurrency trading.
So, if you are one of those looking to participate in the action while the Commerce is active, be sure to use these 5 tips to get the most out of your exchange.
Consider the types of exchange order
You probably know that limit orders are orders that you can place below or above a market price for a (long) buy or (short) sale, respectively. In addition to limit orders, there are also market orders.
Market orders they are your basic stock purchases. The difference between the market and the limit orders lies in the moment in which the purchase or sale is made. When you place a market order, buy or sell something immediately at the price determined by the market.
But if you really want to start trading like a pro, you will have to be good at placing limit orders. With limit orders, you can select a maximum purchase price for an asset or a minimum sale price. This will allow you to play the market instead of being subject to the ups and downs that occur in cryptocurrencies.
Choose exchange pairs
Veteran traders know that the volatility of a cryptocurrency pair like DASH / BTC is generally greater than the volatility of a Bitcoin / fiat pair. The general nature of exchanging for a Bitcoin pairing implies less risk, but less profit. Remember that the style of trading in this type of pairs can be completely different.
The first pair that beginners usually opt for is BTC / USD. With this knowledge, exchanges are applied to this exchange pair with the highest commissions that can get away with it. For example, if you want to buy BTC with fiat at PaxfulYou will have options that are up to 30% higher than the current market price.
The next time you decide to buy cryptocurrency, try buying alternative currencies with fiat or web money, and then trade your alts for BTC. In the end, you will pay surprisingly lower rates than you would pay for the direct purchase of cash from BTC. This type of webmoney to altcoin exchange chain can save you up to 6%, mainly because the exchanges take advantage of the popularity of Bitcoin.
Use commercial margin affiliate programs
Despite the fact that margin trading is the riskiest, it is also an extremely profitable form of cryptocurrency trading. To put it simply, margin trading is a form of trading in which you exchange an additional amount of someone's borrowed money by tapping into the money they already have.
Even veteran traders can face huge losses in margin transactions. However, if you are good at regular cryptocurrency trading, you can start to test margin for small amounts cryptocurrency and take advantage of available affiliate programs. Some crypto exchanges like PrimeXBT offer a percentage for second tier partners and even demo accounts where you can learn to trade on margin without any financial risk.
Try API trading
An API is a application programming interface or a program that allows applications to interact with each other. You can imagine APIs as messengers that accept requests and inform the system about them, and then return responses to it.
A trading API, as its name implies, allows you to interact with the trading system or, more precisely, execute transactions directly on the exchange. This is especially useful for traders using algorithmic models in their trading systems: they need prices that are updated in real time, as well as the ability to execute transactions (manually or automatically) as soon as their model emits a suitable signal.
Some cryptocurrency exchanges, such as Kraken and PrimeXBT, They offer their customers trade APIs that support direct tariff feeds and direct trade. APIs have already become an integral part of the arsenal of professional cryptocurrency traders, and their rise in popularity is indicative of the evolution of the trading industry.
Trade in better conditions with subaccounts
Subaccounts are useful for those who work with many clients, or those in charge of large business operations and who want to use different business strategies at the same time. But if we go beyond that, subaccounts can be used as a referral program to help the owner of a main account increase their trading volume and allow them to trade on favorable terms. If you know someone who operates at a high rate on exchanges that provide subsidiary accounts, ask them to get you one and you will be able to trade more favorable commissions.
You won't have to worry too much about privacy, as your account will have its own API key that will control your assets. Some exchanges like HitBTC and PrimeXBT offer benefits like Calculating the Amount You Pay in Trading Quotas Masterfully and Combined Subaccounts. Also, only master accounts must undergo KYC procedures on these exchanges.
If you are new to the subaccounts idea, you should know that they have exactly the same rights and opportunities on the blockchain as regular accounts; they have their own passwords and passwords, their own addresses, etc. The difference is that they can only be created by a primary account owner on an exchange. The main draw of subsidiary accounts is cryptocurrency trading with assets divided from one main account, which can then be transferred back without having to jump through the usual loops. This makes it especially suitable for institutional and corporate clients.
If you've read this far, you really want to know how to minimize risk, improve your trading skills, save on commissions, and generate more profit while trading. Here there is some additional tips on safety:
- Divide large sums into parts and only exchange one part after receiving payment for another. This reduces the probability of losing large amounts.
- Create unique complex passwords for each site. If an exchange is hacked, scammers will test your compromised password on other similar sites.
- Check your payment details at each stage. Beware of malicious software that can memorize Bitcoin addresses on clipboard.
- Google services and exchanges on independent sites like monitors and cryptocurrency exchange forums so you have a good idea of the reputation of an exchange.
These tips are important, but the best tip of all is simply using attention, determination, and critical analysis.