There are various ways in which to profit from cryptocurrencies. In addition to investing long-term by becoming a holder of a crypto asset, you can also use another option, namely trading. But what exactly is trading in crypto?
Many people say that trading is the same as gambling. In fact, however, it is a different matter. A gambler depends on the only factor which is luck. Very different from gamblers, traders must be equipped with knowledge and considerations of profit and loss by analyzing trading risks (buying and selling) before making transactions. Trading is closely monitored by BAPPEBTI (Commodity Futures Trading Regulatory Agency).
Well, what about the phenomenon of trading in crypto? Come see the explanation below!
What is Crypto Trading?
In simple terms, crypto trading is an activity of buying and selling crypto in the short term and tends to be short. Crypto trading is almost the same as trading stocks or commodities. The difference is, that crypto trading has a high level of volatility and the market is always active 7×24 hours. Therefore, the value is also very volatile so you must always monitor the price movement. Most people think that trading is a quick way to make a profit and generate wealth. Not a few ordinary people are interested in learning to trade because of the huge profit potential. However, keep in mind that a successful trader must be accompanied by knowledge and understanding of the risks of trading.
How to Trade?
One of the keys to success in trading is having a strategy to minimize losses. Litedex has discussed trading strategies in the article Crypto Trading Strategy: Counter Trend Vs Follow the Trend. For those of you who are just starting out, here’s how to get started.
Choose the type of cryptocurrency
The first thing you have to do in starting trading is to do some research on the crypto asset you want to buy. As of July 18, 2022, there were 20,250 crypto assets on the social intelligence platform Coinmarketcap. Coinmarketcap divides the analysis results into various categories that describe the latest cryptocurrency market conditions. You can find various cryptocurrencies in Today’s Cryptocurrency Prices by the Market Cap menu. There are categories of Gainers & Losers, Trending, Most Visited, and Recently Added. As of July 18, 2022, Theta Fuel (TFUEL), ApeCoin (APE), and Ethereum Classic (ETC) managed to become the Top three Gainers assets. Then, French Connection Finance (FCF), Bitcoin (BTC), and Cult DAO (CULT) also became the top rank in the Most Visited category. Those with lower values, such as UNUS SED LEO (LEO), Fei USD (FEI), and eCash (XEC) are included in the Top Losers.
Setting up capital on a wallet account
You must have funds as capital to start trading crypto on the CEX or DEX exchange of your choice. You can top up according to the minimum value determined by the exchange and adjust it to the budget you have. Some exchanges that you can use to trade crypto are CEX such as LBank and Tokocrypto. Binance and Coinbase can also be used as CEX alternatives with the cheapest gas fees. If you want to try trading on DEX or decentralized exchanges, you can choose Pancakeswap on the BSC network because it has cheap gas fees and Sushiswap on the Ethereum network. You can also trade on Litedex.io on the BSC network in July 2022, you know!
Buying cryptocurrency assets
You have to be observant in choosing the right time to buy crypto assets. The crypto market is a global market that is always active for 24 hours so the price is very volatile. One of the tips for buying crypto assets that can be profitable is when the market price of the asset is down (dump). It would be nice for you to buy crypto assets that are being dumped with a small nominal first.
Doing crypto trading (buying and selling)
Because trading is an activity in the crypto market for a short time, the assets you use for trading are not stored in the long term like investments. Therefore, it is important to always keep an eye on price movements and read the most up-to-date news about your crypto assets. When the price is going up, you can sell it for a profit. Conversely, if the price is going down, you can buy it.
So, are you ready to start crypto trading? Remember to be careful in choosing coins or tokens and exchanges when trading. Continue to follow our articles so that you understand more about the world of cryptocurrencies. Don’t forget to visit the Litedex website, Instagram, Twitter, YouTube, and TikTok to keep getting updated information from us.