Trading option in crypto market.
Hello lovely people of Hive community. Hopefully you will be enjoying your life with good health and spirit. Friends, trading is not an easy job. Things become more challenging if you are involved in crypto trading which is one of the most volatile trading market.
We often see majority of people who join crypto market with a wish of big return ended their campaign at huge dip. One of the main reason of this is lack of knowledge, poor selection of coin etc. There are couple of trading options available in crypto market like spot trading, margin trading, future trading, range trading, high frequency trading and dollar cost average. Keep in mind that all of trading is risky.
Spot trading is the most easy one. You can purchase or buying coin any time depending upon your self. Main advantage of stop trading is its easiness.
Margin Trading is more risky than spot trading. In margin trading you have to take some laverage which is risky. Although taking laverage may give you big profit but there is possibility it will eat all your asset if the price of coin observed dip.
Like Margin trading, future trading is also very risky. It is based on assumption which required indepth knowledge of the market, and know how about the financial news and upcoming events. Not a good choice for the beginners.
Range trading is based on experienced analysts, who give out support and resistance levels each day. Support and resistance are the basic foundational concept in technical analysis. It is all based upon demand and supply of coin. More demand means price and lower demands decrease the price of coin.
High frequency trading is algorithmic trading strategy used by quant traders. It required high skill to develop a bot which will tell you when to sale and purchase.
Last and least dollar cost averaging is an other way of trading. Dollar Cost average is based on practice of investing a fixed dollar amount on a regular basis. It is far better to invest in multiple installment instead of single trade. It decrease your buying cost and reduce the risk of loss.
You can select any option but for this in depth knowledge, doing technical analysis is must. It is important to remember choose those coins which have good used case. Another rule which need to follow is diversify your investment in multiple coins. What is your opinion my friends?
This is it for my today post. Wish you all a very happy, healthy and prosperous life ahead. Have a nice time.
Those of us who want to invest in crypto or any asset class need to get the first rule right and that is to keep the emotions out of trading.
Now trading is for those who want to study the markets . there are so many ways to study the markets.
Some go by technical analysis and others go by fundamental analysis.
So everyone needs to have their own strategy to trade as well as invest.
Nice post my friend. Enjoyed reading and learning from it
Trading options are financial derivatives that give traders the right but not the obligation to buy or sell a certain amount of an underlying asset at a predetermined price and time.
In the crypto market, trading options are used for speculative purposes and as a hedging tool to manage risk.
It involves a higher degree of risk compared to traditional trading, as the value of the options contract is derived from the price of the underlying asset and can be highly volatile.
It is important for traders to have a good understanding of options trading and to carefully consider the risks before entering into any options positions.
Posted Using LeoFinance Beta
Trading should be like this " different trading options in cryptocurrency market" at least use options not option I hope you will never mind it and try to understand what I am talking about my friend 💗