How to Trade Cryptocurrency and Be Profitable (CFD Trading Guide)

how to trade cryptocurrency and be profitable 
welcome back to crypto smooth in this video we   will discuss about cryptocurrency trading and 
how do you profit from crypto volatility but   before starting the video be sure to smash the 
like button and subscribe to never miss sound   on any of our videos what is cryptocurrency 
trading cryptocurrency trading is the act of   speculating on cryptocurrency price movements 
via a cfd trading account or buying and selling   the underlying coins via an exchange cfd's trading 
are derivatives which enable you to speculate on   cryptocurrency price movements without taking 
ownership of the underlying coins you can go   long buy if you think a cryptocurrency will rise 
in value or short sell if you think it will fall   both are leveraged products meaning you 
only need to put up a small deposit known   as margin to gain full exposure to the underlying 
market your profit or loss are still calculated   according to the full size of your position so 
leveraging will magnify both profits and losses   buying and selling cryptocurrencies via an 
exchange when you buy cryptocurrencies via   an exchange you purchase the coins themselves 
you need to create an exchange account put up   the full value of the asset to open a position and 
store the cryptocurrency tokens in your own wallet   until you're ready to sell exchanges bring their 
own steep learning curve as you'll need to get to   grips with the technology involved and learn 
how to make sense of the data many exchanges   also have limits on how much you can deposit 
while accounts can be very expensive to maintain   how do cryptocurrency markets work cryptocurrency 
markets are decentralized which means they are not   issued or backed by a central authority such as 
a government instead they run across a network of   computers however cryptocurrencies can be bought 
and sold via exchanges and stored in wallets   unlike traditional currencies cryptocurrencies 
exist only as a shared digital record of ownership   stored on a blockchain when a user wants to 
sell cryptocurrency units to another user   they send it to the user's digital wallet 
the transaction isn't considered final until   it has been verified and added to the blockchain 
through a process called mining this is also how   new cryptocurrency tokens are usually created 
how does cryptocurrency trading work with ig   you can trade cryptocurrencies via a cfd account 
derivative products that enable you to speculate   on whether your chosen cryptocurrency will rise 
or fall in value prices are quoted in traditional   currencies such as the us dollar and you never 
take ownership of the cryptocurrency itself   cfds are leveraged products which means you can 
open a position for just a fraction of the full   value of the trade although leveraged products 
can magnify your profits they can also magnify   losses if the market moves against you what is the 
spread in cryptocurrency trading the spread is the   difference between the buy and sell prices quoted 
for a cryptocurrency like many financial markets   when you open a position on a cryptocurrency 
market you'll be presented with two prices if   you want to open a long position you trade at the 
buy price which is slightly above the market price   if you want to open a short position you trade 
at the sale price slightly below the market   price what is a lot in cryptocurrency trading 
cryptocurrencies are often traded in lots batches   of cryptocurrency tokens used to standardize 
the size of trades as cryptocurrencies are   very volatile lots tend to be very small most are 
just one unit of the base cryptocurrency however   some cryptocurrencies are traded in bigger 
lots what is leverage in cryptocurrency trading   leverage is the means of gaining exposure to large 
amounts of cryptocurrency without having to pay   the full value of your trade up front instead 
you put down a small deposit known as margin   when you close a leveraged position your profit 
or loss is based on the full size of the trade   while leverage will magnify your profits 
it also brings the risk of amplified losses   including losses that can exceed your margin on an 
individual trade leverage trading therefore makes   it extremely important to learn how to manage your 
risk what is the margin in cryptocurrency trading   margin is a key part of leveraged trading it is 
the term used to describe the initial deposit you   put up to open and maintain a leveraged position 
when you are trading cryptocurrencies on margin   remember that your margin requirement 
will change depending on your broker   and how large your trade size is margin is usually 
expressed as a percentage of the full position   a trade on bitcoin btc for instance might 
require 15 of the total value of the position   to be paid for it to be opened so instead of 
depositing 5 000 you'll only need to deposit 750   what is a pip in cryptocurrency trading pips are 
the units used to measure movement in the price   of a cryptocurrency and refer to a one-digit 
movement in the price at a specific level   generally valuable cryptocurrencies are traded 
at the dollar level so a move from a price to   190 to 191 dollars for example would mean that the 
cryptocurrency has moved up a single pip however   some lower value cryptocurrencies are traded at 
different scales where a pip can be a cent or even   a fraction of a cent it's important to read the 
details of your chosen trading platform to ensure   you understand the level at which price movements 
will be measured before you place a trade   how do you profit from crypto volatility the 
cryptocurrency industry is now valued at more   than 1.9 trillion dollars bitcoin alone has a 
market cap of more than one trillion dollars   yet it is still one of the most volatile assets 
to invest in however the recent rally has seen   many investors overlook bitcoin's traditional 
volatility concerns as they continue to buy   it but based on the historical performance of the 
cryptocurrency market many would argue that buying   and holding for the long term may not be the 
best strategy there are alternative investment   strategies that traders can use to profit from the 
inevitable volatility of the cryptocurrency market   although bitcoin continues to demonstrate signs of 
high volatility the recent bull run is an example   of how some of its rallies can really pay off 
bitcoin surged from a price of eighteen thousand   dollars to a new historical high of about sixty 
one thousand seven hundred forty nine dollars   before pulling back to the current level of 
fifty nine thousand one hundred fifty dollars   this performance demonstrates that the 
pioneer cryptocurrency can deliver significant   short-term profits but you can 
never bet on it in the long term   bitcoin tends to experience rallies after positive 
developments in the cryptocurrency industry   the current rally is partly driven by 
online payments platform paypal inc   paypal incx pypl financial moved to embrace crypto 
late last year the company also launched a crypto   checkout service this earlier week this ties 
in well with several other financial services   companies and government agencies around the world 
that have taken the same steps it also appears to   be benefiting from a growing phenomenon that is 
a potential safe haven option for young investors   this has boosted its popularity with other markets 
suffering from adverse effects of coven 19.   over the past eight months bitcoin has 
outperformed gold the traditional safe   haven asset thank you guys for watching 
if you want more videos like this make   sure to like the video and hit the subscribe 
button and we'll see you in the next video you

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