Bitcoin on the exchange. Start trading

Bitcoin Exchange Now Open: Pinoy-owned Bitcoin Trading Website 2020 - Negosentro
Image Source: | Bitcoin on the exchange. Start trading | 2017 year. The information space is full of news about the adventures of cryptocurrencies. Bitcoin has fallen, Bitcoin has risen. Cryptocurrency was legalized, cryptocurrency was banned. Currency of the future, free money, soap bubble. Each one is an expert, but 9 out of 10 experts are couches. 

A brief history of cryptocurrency

Advanced humanity has been preoccupied with e-currency ideas from around the late 70s of the twentieth century.

The first cryptocurrency in 2009 was created by a mythical character (or group of characters), hiding behind the name Satoshi Nakamoto. The basis for the production of electronic cash called Bitcoin was the blockchain technology. A blockchain is a sequence of blocks containing information about all completed transactions. It is the digital code generated in the “format” of the blockchain that is the virtual currency unit.

Initially, the creators and geeks dedicated to the topic tested bitcoins, exchanging purely among themselves. And in 2010, an American programmer made the first real purchase for cryptocurrency. He was too lazy to tear his ass off the chair, and he promised 10,000 BTC to someone who would buy and bring him two pizzas. Translated into dollars at that time, it was worth $25, at the moment it is about $4 billion.

In 2011, the world’s first exchange was opened, on which it was possible to exchange bitcoins for state currency. And that means trading. She was called MtGox. Several scandalous events related to hacker attacks on the exchange, and the use of bitcoin for criminal purposes, significantly raised the exchange rate of bitcoin to the dollar. In 2013, the cost of 1 BTC overcame the mark of $ 1000.

In just a few years, an entire industry has grown around cryptocurrency. In addition to bitcoin, ether, lightcoin and other types of electronic cash appeared, several dozen large crypto-exchanges appeared (some of them collapsed right away), and the actual production of cryptocurrencies has become an attractive business for individuals and entire enterprises. And in the spring of 2017, Japan became the first country to legalize bitcoin at the state level.

How do bitcoins exist?

Cryptocurrency production is called mining. It consists of the fact that the computer performs calculations and generates code. It would seem something complicated here? I started the process, waited, and got the money. But it’s not so simple. Firstly, mining requires powerful equipment, in particular special graphics processors. Secondly, you need to provide 3 conditions – strong cooling, good Internet connection, and uninterrupted electricity in large volumes. Often, the costs of cooling and electricity are so high that they make mining unprofitable, and therefore many cryptocurrency miners base their capacities in countries with a cold climate and cheap tariffs.

But this, you probably know yourself. And what about the trade?

Start of trading

The most adequate tool for trading crypto is currency pairs. To start trading, for example, with a pair of USD / BTC, you need to go to the exchange, put a deposit on your account, enter a cheaper transaction, go out more expensive (or vice versa). Everything is as in regular trading. Depending on the level of the trader, 4 trading strategies can be used with the help of bitcoin signals

  • Scalping. Suitable for couples with a high spread (to recapture the size of the commission). The purchase is carried out using a limited order, followed by a quick sale. Profit is made due to the number of transactions.
  • Exchange Arbitration. A trader buys a certain amount of cryptocurrency for dollars, which he sells for another type of cryptocurrency, and again buys dollars. (Example chain: dollar-ether-bitcoin-dollar). With proper implementation, it brings up to 0.5% of the profit on one transaction. In fact, also scalping technique.
  • Trade volatility. The trader chooses a tool with high volatility, and using the skills of technical analysis, calculates risks, finds favorable entry and exit points for transactions. In principle, you can trade with any cryptocurrency, but the choice is best based on the rules. And remember: not all currency pairs are equally useful!
  • Margin trading. It gives the trader the opportunity to increase potential profit due to the agreed multiplier, the so-called. leverage. In fact, such exchange lending can benefit only very disciplined traders. Indeed, non-compliance with risks in margin trading threatens an almost instant margin call. First, you will be asked to replenish the deposit, and if the requirement is not fulfilled, they will close your account. On existing cryptocurrency exchanges, leverage of 1: 1 to 100: 1 is offered. This is a strong temptation and almost guaranteed death for a beginner.

Whatever type of trading you do, keep your transactions anonymous by mixing your BTCs immediately and make them untraceable with Coinomize. Coinomize sends you clean coins automatically after mixing.

Basic Cryptocurrency Trading Tips

  • Keep track of the top ten cryptocurrencies leading in terms of traded volume. It doesn’t matter if you are going to trade them or not. The first and main cryptocurrency has always been, and in the near future will be bitcoin. But if something goes wrong with him, you will always have other options.
  • During tool drawdowns – buy, but do not sell. If your money management and level of experience allow, you can use leverage.
  • Regularly withdraw part of the profit. This is necessary in order to ensure your profit from market surprises, as well as to feel real money.
  • Follow the news. Cryptocurrency is a very young industry, and all sorts of surprises are possible here. In a few trading days, bitcoin could fall by $ 1,000, and then rise by $ 1,500. In addition, cryptocurrencies do not have a unanimous legal status. For example, the Chinese government has banned cryptocurrencies, and Australia plans to release its own. Without knowing this, you may find yourself in a disadvantageous or unpredictable situation.
  • Always comply with risk management. Do not rearrange the stops and even better – use limit orders.