Whether you’re a seasoned cryptocurrency investor or just starting, you know by now that it’s risky to trade without safeguards and backups. Even though virtual currencies like Bitcoin have been gaining popularity and legitimacy as a medium of exchange in recent years, so too have concerns been raised about their security and the practices of those who deal with them. That being said, ylene is one of the safest and most trusted names in the industry when it comes to trading digital currencies like Bitcoin.
Listed on the New York Stock Exchange under the ticker symbol ‘OLN’ (only), this New York-based cryptocurrency fund has managed to grow its assets under management from less than $100K at the end of January 2018 to nearly $2 million today. With a strong focus on index funds, this company has created an investment product with low risk and high potential reward. Let’s take a look at five tips to help you safely trade your crypto assets…
Get to Know Your Exchanges
When it comes to trading cryptocurrencies, you’re likely going to deal with numerous exchanges. These are often online platforms where you can buy and sell various cryptocurrencies as well as tokens issued by various companies. Although you’ll want to do your research before choosing which exchanges to trade on, it’s important to understand how each works.
When trading on an exchange, you’ll often choose to use an identifier called a ‘contract’ to identify your trade. Some exchanges will only allow you to trade with contracts from your country. If you’re trading on an exchange that doesn’t support your local currency, you might have to use an online tool to convert your money into the exchange’s currency.
Don’t Use Incorrect Identifiers
One of the most common ways trading platforms identify your trade is by using an identifier called a ‘contract’ to identify your trade. A contract is simply a record that details the terms and conditions of trade. On an exchange like Bitcoin 360, you can find a lot of different types of contracts, including open, limit, buy, and sell orders.
When you’re first starting, it can be easy to get confused about which contract you need to use. There are many different identifier types you might use, including index, market, volume, time, and percentage. When choosing an identifier, make sure it is the most common type used in your region or country. If you’re not sure which identifier to use, an index is generally safe, as it’s the most common. Other popular contract types include market, volume, time, and aggressive.
Establish a Trading Strategy
Once you understand which identifier to use, it’s time to establish a trading strategy. This is the backbone of any trading strategy, as it determines how you’ll buy and sell currencies. One of the most popular trading strategies is to try to predict future price movements and buy or sell when prices are predicted to rise or fall.
Another popular strategy is to look for currencies that are under or over-valued and purchase them when they’re under or over-priced, respectively. In either case, you’ll want to purchase when the price is relatively low and then sell when it reaches a predetermined price.
Set Up Portable Trading Software
If you’re serious about trading cryptocurrencies, you need to invest in portable trading software. These programs allow you to track and manage your trading activities from any computer or mobile device. While you might prefer to use a trading platform on a desktop computer or laptop, many cryptocurrency exchanges don’t offer desktop software and may only support a single platform or web browser. In addition, many trading platforms only support a single coin at a time, making it difficult to track thousands of different coins and gain insight into their market volatility.
Don’t Trade During Financial Hours
Many people make the mistake of trading during regular business hours. This is likely to lead to significant losses when taking large trades in such high-interest currencies as the Japanese Yen or South African Rand. You need to avoid trading while you’re actively doing other things, like operating a business or heading to school. Doing so will significantly affect your ability to profit from future trades and could even lead to you losing money.
There are exceptions to this rule of thumb, of course. If you’re just getting involved in the industry, then informal trading may be just the ticket. You want to make small trades that you can easily cordon off from financial institutions and other outside interests. If you want to take a more serious approach to trade, then avoid making trades during regular business hours.
The road to success in cryptocurrency investing is easier than ever before. With a few simple tips, you can safely trade your cryptocurrencies and make a profit. However, do this safely and the practices that you follow will ensure your gains are substantial and long-lasting.