The Basics of Cryptocurrency - Online Trading Platform

CRYPTOCURRENCY TRADING STRATEGY

Trading without a strategy is little more than gambling, so you should always have a plan for your money when investing. There are four notable ways to approach currency trading that can be defined as follows:

Day Trading

Fast paced trading that looks to get in and out of a trade within the same day. Trades can be a few minutes or a few hours long, but the aim is to take advantage of the price fluctuations that take place in the daily markets. This means lower profit per trade, but more frequent trades.

Position Trading

A more complex approach that requires a deeper understanding of medium-term influences on currency prices and the ability to ignore daily fluctuations to see though the overall position. Trades can last weeks and even months, so less trades, but significantly higher profits on each successful trade when compared to day trading.

Swing Trading

Also known as trend trading, the idea is that the trader rides the wave of the market in one direction, and then follows it as it turns the other way. The skill here is identifying new trends, the ‘swing’ as the market turns from up to down and vice-versa. Trades last days, possible a week or two, so fall in between day and position trading. Similarly, trade frequency and profitability per trade fall in the middle of the day and position trading approaches too.

Scalping

The final approach is often seen as part of day trading, but scalping is something different, with trades lasting minutes, sometimes even less. The aim is to take advantage of the difference between the bid and ask prices in a market, and make regular, small gains throughout the trading session. This method looks for the smallest profit per trade, but by far the highest frequency of trading.

ALL trading approaches have their advantages, and all equally have some disadvantages, the key to successful trading is to find the approach that suits you best. If you are impatient, perhaps the longer-term strategies will not suit you, but day trading and scalping would be more your style. Trading requires to you to take a good look at yourself as well as the markets, and then match your approach to your own personality.

THE SCALPING STRATEGY

The Scalping strategy is a "short trading timeframe" strategy. It's also popular because of the differences between the bid price buying and the asking price selling, as well as the trading profit earned while trading in this particular strategy. For a quiet market and for smaller amounts, the Scalping market is efficient.

Trading Choices

Whatever approach you decide, there are some things that every trader must include in every trade choice they make, this includes:

  • Choose an appropriate Trading Timeframe: Before you begin to trade, selecting a timeframe is crucial. AS a trader, you must establish your goals first, and then timeframes and so on will align with that. Using accurate analysis of the trading data which is available online, most cryptocurrency traders operate both hourly and daily timeframes.
  • Maintain detailed record - Logging: Traders must keep accurate records of all trades, even if there is a permanent record in the ledger. As a trader, it's critical to keep notes while trading in the market, as it can be used to assess your own performance, show your response to the market and trading pressure. This process is important in your journey to become a digital currency trader, understanding the market and your actions when trading enables you to improve, refine and adjust your approach. The trading log should always include your entry date, time, any stop loss, profit target and profit order in place.
  • Keep Tabs with market news: Political news is not everyone's favorite thing to stay up to date with, but any person in the trading or financial business should always be aware of this type of news. Because the political changes affect every market, it is really important to keep an eye on all developments as you trade.
  • Studying: No matter how busy you are, or how busy you get, studying should be part of every trader’s life. Whether it’s the latest news, articles on trading or refining your approach by examining your records and seeing where you could do better, trading is a journey of discovery that never ends. You will always have something to learn, something to discover that will help you be a better trader. Never stop improving.

Your Next Step

Our trading accounts give you the ability to start your trading journey with a low investment, building your confidence and profits as you go. But we also offer an alternative, our managed accounts allow our professional analysts to trade your account for you, growing it steadily, always with your risk profile in mind, giving you all the advantages of currency trading without the pressure.

Whichever approach you take, currency trading is one of the greatest opportunities to build wealth available today, and we know that your future is bright with currencies, your skills and TradeCX.

What is bitcoin

New Currency Bitcoin

Bitcoin was the first cryptocurrency, building on the original digital currencies of the 1990’s, DigiCash and Flooz.

While those two currencies never really gained traction, Bitcoin introduced the concept of the Blockchain, and with that advantage, Bitcoin has grown from its initial code launch in January 2009 to become a globally accepted currency today. Who created Bitcoin remains a mystery, officially the Bitcoin code was created and released by a man named Satoshi Nakamoto, but there is one problem with that. Its not a real person, it is a name used by whoever did create Bitcoin to help them remain anonymous.

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