Cryptocurrency Trading

Cryptocurrency trading

What is crypto trading?

In this article of QuantVan academy we want to consider and learn more about Cryptocurrency Trading. Since cryptocurrency is getting more popular every day, it is crucial for investors to understand that crypto trading does not make you profit as fast and easily that most people think.

The most important step for beginners is to doing research in order to put their money in something more secure.

The good news is that we have embedded all the necessary steps you need to take as a crypto beginner in this article.

  • Cryptocurrencies are being traded 24/7.

Although trading volume differs during the day they bear a very low significance and that of course happens because different traders from different countries enter the market at different times.

  • Crypto market is very unstable.

It is very important for investors to know that crypto market is not stock or classic market and they are under the risk of skyrocket or fall down. Remember that huge price spikes cryptocurrencies experience on a regular basis is not always profitable.

In order to reduce the risk of facing devastating effect on your capital, you have to be aware of the crypto market.

unstable crypto market for buyer and seller

  • Find a broker for your cryptocurrency trading. There are many crypto companies but you should consider some important aspect as followed

1.Trust and Regulation:

If you are from a European country, the broker should be regulated by the CySEC which oversees all the broker’s activities and provide full deposit insurances up to 20 000 dollars. Investors from Australia should be looking for brokers with ASIC license.

2.Find a suitable broker:

A broker with the lowest fees possible cause the less you pay in fees the more you can earn. Most brokers charge an amount equal to a spread for opening a position.

A spread is the difference between what you pay for a cryptocurrency coin and what you get when you decide to sell it to the broker.

Apart from that, many brokers charge a swap when you stay in a position overnight. Such brokers are usually best for day cryptocurrency trading and brokers with no swaps are best for a long-term holding.

choosing the right broker for crypto market

3.  Your desired cryptocurrencies:

If a broker does not offer cryptocurrencies you want, do not create an account. Remember to check if the company you choose offers all cryptocurrencies you plan to trade.

4.  Leverage:

leverage is a very powerful tool when used by professionals, however, beginners should only use it with great caution or not at all. It helps you benefit from small price movements of cryptocurrencies. Fortunately, the cryptocurrency market is volatile enough to make a good profit even without it.

leberage, power tool in market

  • Select your cryptocurrency.

A very important step is selecting a digital coin with the highest potential. These are the most important general rules when determining a cryptocurrency’s potential. The cryptocurrency you select should meet at least 3 of these criteria:

    • Infrastructure (App development, Cloud storage, Virtual Private Networks, funding, etc.)
    • Technology (Quick transaction process, firm and easy to use UI that is easy to adopt, etc.)
    • Development team (Skilled and experienced, solid amount of developers, etc.)
    • Growing popularity (Rising demand for the cryptocurrency, more people using it, media coverage, etc.)
  • Determine the price.

in crypto trading You probably know the saying “buy low, sell high”. there might be situations when the value of a certain cryptocurrency with good technology, funding and media exposure keeps rising for a long time.

However, such investments are very risky for beginner traders because it is hard to determine how long the growth can last. We surely do not want to end up chasing highs and go with the excessive optimism.

  • What is the best way to approach crypto trades?

The greatest way to approach cryptocurrency market is to “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” Warren Buffett said. If you see people dumping coins for a relatively low price, it might be a good time to buy them.

being carefull in trading


  • Determine your target sell price.

once you are in a trade and the price goes up, you have to think about the best time to get out of the trade. The best time for leaving is when the prices are going too high and the investors are getting carried away.

One way to determine this moment is by asking yourself “Do I honestly believe the coin is worth more?”. If you currently find no more space for the cryptocurrency to grow, it is time to get out of the position.

  • What affects the price of cryptocurrencies?

There are many major influences that can drive the price of cryptocurrencies down or up. The main of them are as follows:

    • Government Regulations.
    • Media exposure and other influences.

There are also individuals who can influence the price of cryptocurrencies. Such people are usually extremely well-recognized in the field of finance and investing.

    • Wider Mainstream Acceptance, New firms backing up the project.

when big companies like Microsoft, Intel or others provide their name and finance, or Amazon, eBay or other huge international firm announce that from now on they will accept payments in Bitcoin, the prices go up.

    • Technological Changes and Innovations.

With every new technological change, there is a high chance that it might significantly affect the price of a cryptocurrency.

    • State of other markets.

cryptocurrencies react to other markets’ developments. In the past, cryptocurrencies tended to benefit from crashes of other markets. Gold and Japanese yen are no longer the only instruments categorized as the safe havens investments.Improvement in crypto market

To wrap everything up The cryptocurrency market is still relatively new and volatile and its trading is complex. You should, therefore, never stop learning.

QuantVan is an algorithmic trading platform for cryptocurrencies. you can read all contents which is related about cryptocurrency market, be aware of the newest news and increase your knowledge with Quantvan academy.