Because of the sheer volume of terminology and processes involved, it can be overwhelming for both beginners and experienced traders. To help you understand and trade the cryptocurrency market, we have broken it down into six easy steps.
Decide How You Would Like To Trade Different Crypto Coins:
You can trade cryptocurrencies using either CFDs to speculate on their prices or by using Telegram Crypto Groups in the hopes that they will increase in value.
Find Out How The Cryptocurrency Market Operates
The cryptocurrency market works in a completely different manner to other financial markets. It is important to understand how the system works and what terminology it uses before you begin trading.
The cryptocurrency market operates as a decentralized digital currency network. It is peer-to-peer transactions that are verified rather than through a central server. Through a process known as’mining, cryptocurrencies can be bought and sold.
Also, cryptocurrencies can be volatile. It is important to understand what will move the market – this could include ICOs or blockchain forks as well as breaking news and regulation.
Register For An Account:
You can trade on cryptocurrency instead of buying them. This allows you to be ready to open positions much quicker. A Multi wallet app and an account on an exchange are required.
Create A Trading Plan
A trading plan is essential for success, regardless of whether you are a trader or cryptocurrency trader. The market can be volatile and traders need to have a plan. The market can be both attractive and difficult to trade, so it is a double-edged weapon. Your trading plan should contain risk management tools as well as an outline about your goals, the cryptocurrency you wish to trade, and a method for entering and exiting trades (known as a trading strategy).
Select Your Cryptocurrency Trading Platform
Our trading platforms will allow you to trade cryptocurrency CFDs smarter and quicker with personalized alerts, interactive charts, and built-in risk management tools. Trades can be made via the IG trading platform by:
- Your web browser
- One of our mobile apps
- Third-party advanced platforms like MT4
Close, Monitor And Open Your First Position
You don’t need a digital wallet to trade cryptocurrencies. Once you open an account with IG, and have chosen your platform, you are ready to start trading cryptocurrencies immediately.
You can trade bitcoin, ether or litecoin and other different crypto coins. All you need is to open the deal ticket for the market you are interested in. Both a buy price and a sell cost will be displayed. The size of your trade will be displayed. Next, you can choose to buy or sell to open long positions. To protect your trade against unnecessary risks, you can add stops and limits to your trade after it reaches a certain level.
The ‘open positions section’ of the trading platform allows you to monitor your position’s profit and loss. Once you’ve decided to close your position you can place an identical trade in the opposite direction.