WHAT YOU NEED TO KNOW BEFORE YOU START TRADING

Zug, Switzerland. – July 8th, 2022. For newcomers who are about to venture into the trading of digital currencies, it's crucial to acquire knowledge on how to get started. This short article will answer almost all the questions you may want to ask ranging from where to buy or sell to how to make profits and others.

WHAT IS CRYPTOCURRENCY TRADING?

It is an act of buying and selling cryptocurrency via an exchange.

 GETTING STARTED

A beginner can choose between any of these three already existing types of exchanges:

  1. Centralized exchanges (CEX) 

In the most traditional type of exchange, buyers and sellers are connected while the exchange serves as the middle man by holding the trader's coins. Once a seller places an order, it's the responsibility of the exchange to find a buyer and vice versa.

  1. Decentralized exchanges (DEX)

This type of exchange is based directly on the ideology behind cryptocurrency. No middle man is involved. The buyers and sellers simply come together and exchange their coins.

  1. Hybrid exchanges

Hybrid exchanges are presently under development. They are a future crypto trading marketplace. They aim to combine the functionalities of CEX and the high-security assurance of DEX together.

Lykke exchange is the only CEX that charges zero trading fees. The low buy-sell spreads make Lykke also stand out. 

FUNDING YOUR ACCOUNT.

After signing up for an exchange and completing the verification process, the next stage is funding your account. Most exchanges accept bank deposits. Lykke is the only crypto exchange covering bank deposit fees for its customers. Our customers can trade cryptocurrency absolutely for free. 

STYLES OF TRADING

Based on a beginner's interest and the knowledge she has, she can choose between the following styles of trading:

  • Position trading

The simple style of trading requires a lot of discipline. The easy explanation for this strategy is buying Bitcoin at $20,000 and then waiting for the price to pump for example to $100,000 before selling. Traders may have to wait for several months or years. All beginner traders pick usually pick this trading method.

  • Day trading

As the name implies, traders do not hold the position till the next day. They take profits at the end of the day and then hunt for another opportunity the next day.

  • Scalp trading

It's a swift style of trading to make constant profits irrespective of the amount. The trader needs to be more focused and concentrate on the price movement at all times.

  • Swing trading

Here, traders focus more on support and resistance. It may take several days or weeks before they reach the target. 

DECIDE ON WHICH CRYPTO TO BUY AND START TRADING 

Although several traders prefer to buy Bitcoin and Ethereum because of their market capitalization, recently many altcoins have been traded. To make the best decision, traders need to be well versed in the method of market analysis which includes Fundamental analysis and Technical analysis. At Lykke Exchange, you can trade both fiat currency as well as 20+ different cryptocurrencies. 

News and community sentiment are other factors to consider. A beginner crypto trader must keep track of community discussions and news events because this information impacts the market price of cryptocurrencies. A trader must take advantage of the power of information by staying active in communities and reading news on Lykke Blog and Lykke News.

Crypto trading automation has made it easy for beginners to trade effortlessly. Integrating these trading automation tools with the Lykke exchange may be one of the best decisions a day trader can make. The detailed Lykke API for Crypto and Forex trading is available here, or you can use the Lykke integration with Margin

Traders are encouraged to take profits whenever they are satisfied.

CONCLUSIONS

Some trading cryptocurrency benefits include volatility, privacy, 24-hour trading, asset variety, and ease of account creation. With Lykke, you can enjoy all these if you begin today.

Latest from Lykke.

Subscribe to our newsletter for the latest news, industry insights and product updates straight to your inbox.

5 Beginner-Friendly Crypto Trading Tips 

Zug, Switzerland. - July 14th, 2022. Considering the current market conditions, investing in cryptocurrencies could be a wise move to make before the trend reversal. Yet, when doing crypto, you should be well aware of the fact that there is a thin line between your investments soaring up to thousands of dollars and going to waste. 

Continue reading

7 Reasons Every Trader Should Learn To Read Candlestick Chart

Reading candlestick charts should be a component of your trading strategy if you engage in financial market trading. Candlesticks convey vital information about the market's price behavior that might influence the success of your trades on the trading floor.

Continue reading

WHAT YOU NEED TO KNOW BEFORE YOU START TRADING

For newcomers who are about to venture into the trading of digital currencies, it's crucial to acquire knowledge on how to get started. This short article will answer almost all the questions you may want to ask ranging from where to buy or sell to how to make profits and others.

Continue reading

Cardano: Everything You Need to Know before investing in it

Zug, Switzerland. June 30th, 2022. Cardano is one of the fastest-growing cryptocurrency projects in the world and has been that way since it was created in 2015. Founded by Charles Hoskinson, one of Ethereum’s co-founders, Cardano has grown to become a leader in blockchain technology for verifying transactions and building decentralized applications (dApps).

Continue reading

Dogecoin Explained: Everything you need to know about the meme coin

Introduction Dogecoin used to be one big joke.

Continue reading