The Cryptocurrency Trading Industry is the driving force behind the Blockchain Technology. This is where the valuation of the Blockchain is determined. Outside utilizing blockchain technology, if there’s no value attached to cryptocurrencies then people won’t be attracted to it. What makes gold, diamond and crude oil attractive is because it holds value.
Cryptocurrencies are attractive mainly because it holds value and their value can be determined through trading on cryptocurrency exchanges.
Same way the value of Gold, Diamond and Crude Oil are not static but fluctuates up and down. Cryptocurrencies do not have a static value, we can see this with the price of top cryptocurrencies like Bitcoin and Ethereum. In February 2014 Bitcoin price was around $400 but as at February 2019 Bitcoin price is is hovering around $9300 – $10,400.
In this article we take you on a walk through the world of cryptocurrency trading. it’s going to be in depth and well detailed make sure you take time out to read this article.
Where can I trade cryptocurrencies?
People have been asking me this question, where can I trade cryptocurrencies?
Just like stocks are traded on the stock market or stock exchange. Cryptocurrency are traded on Cryptocurrency Exchange. For more information on Cryptocurrency Exchange click here.
How do I trade cryptocurrencies?
As simple as this question is, trading cryptocurrencies is quite complex and mostly depends on the individual. Every cryptocurrency trader has his or her own technique on going about crypto trading. The bad news is no one can actually teach you how to trade cryptocurrencies but the good news is you can teach yourself how to trade cryptocurrencies.
In order to educate yourself on how to go about cryptocurrency trading, you need to take note of the following features and terminologies
Cryptocurrency Trading Charts
In the trading interface on exchanges one important feature is the trading chart. This is a graphical representation of the trading history of a particular cryptocurrency.
what are Trading pairs in cryptocurrency?
A trading pair tells you which currencies are being traded against each other. The first currency of the pair is the one that you are trying to buy or sell. Your trades would then be denominated using the second currency.
For example, CUR/BTC is a trading pair where CUR is the first currency while BTC is the second currency. This means that you can buy CUR using your BTC balance.
When placing an order in Order Entry, you can buy CUR by specifying the amount in Order Quantity. This amount could either be in CUR or in BTC. However, the Price per CUR field (in Limit and Stop Orders) below should only be in BTC since that is the second currency of the trading pair.
what is a limit order and market order?
While a market order will buy or sell coins and tokens immediately for the going rate, a limit order is for those who are willing to be more patient to get the best price.
What is trading volume?
Trading volume is the amount of activity that is surrounding a coin or a token. This metric will allow you to see how popular an asset is and how frequently it is changing hands. It’s a ledger of the buying and selling activity surrounding each coin or token, and it can be very useful for planning your trades.