Arbitrage trading can be described as the simultaneous purchase and sale of an asset in order to profit from discrepancies in its price. In other words, arbitrage traders will purchase an asset in one market, and then sell that same asset at a higher price in another market. In the context of the cryptocurrency market, arbitrage trading might resemble something like this:
Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.
The first thing you need to do before you invest in a crypto is to analyze its trading volumes. As a rule, always go for cryptos that have high daily trading volumes, unless there are some big upcoming news about a low volume crypto. High volumes signal to a Crypto’s liquidity, and the presence of an active community. The problem with low volume cryptos is that in most cases, they lack a strong community backing them, and they can easily get delisted from exchanges, leading to losses.
So I decided to take a peek at github, here's what I saw 11,200 repositories for bitcoin vs 3,563 for ethereum. **for non technical folks - repositories are where developers are storing code for projects** However, you have to note that Bitcoin was released in January 2009 and Ethereum was released in July 2015. Total volume isn't the best measure, let's take a look at the languages used.
Finally, always check, double check and triple check while trading – a simple tip that even seasoned crypto holders forget. When setting up buy or sell orders, make sure your numbers add up, as even the smallest of typos can see you lose an eye-watering amount. Also, when dealing with an exchange, make sure you’re sending coins to the correct address.
Let’s say a trader has bought Bitcoin for almost $20,000 in December 2017. The current price of this crypto is around $7,000-$8,000. It is evident that he has made a mistake purchasing Bitcoin at its tops. Why do many beginner traders do those mistakes? The main reason for this is lack of knowledge and some typical emotions that make them buying when the price grows.
All the same, you should be careful where you put your money. Many HYIPs out there are simply scams. You might end up losing all your investment. Before you put money in any program, it is advisable to gather as much information as possible to know whether the company pays. As for this company, we strongly recommend that you get more information about it from a reliable HYIP monitor, before you take that bold step invest.
It’s important to realise that you need to do your own research and come up with your own strategy for cryptocurrency trading. If you are short on time and want to play it safe; the easiest cause of action is to simply diversify into several different coins and then wait a year or more. However, if you want to maximise profits you should learn how to swing trade cryptocurrency.
We’ve come a long ways in our path to becoming crypto traders, but there are still some very important things to learn. So far, we’ve learned how to do a fundamental analysis of a cryptocurrency, and that it’s important to do this so that we fully understand them before investing. But as traders, we need to understand what kinds of things tell us when should buy or sell. We need to understand technical analysis.
Watch out for odd Altcoins and ICOs. The market is tricky enough with the major coins, it is even trickier with odd alt coins and ICOs. Yes, sometimes you can buy these low and see insane gains. In fact, getting it right is the best bet in crypto. The problem is, almost all the odd coins down the list and ICOs will spend the majority of their life being near worthless. Then, you may see a short time span in which these coins preform well. You would think that you would be able to take profits then, but so many people do not. After that one event these can end up in the graveyard. Yeah, you could make it big on low cost alts and ICOs… but I’ve seen more than a few people lose money. Be careful bottom fishing, Bitcoin might not make you rich, but it is a way less risky bet than coins further down the list.
The crypto market is a ‘giving’ mechanism, not a taking mechanismAugust 9, 2015How simple it is for amateur traders to hit the buy button, without even the slightest hint of an insight into the hidden forces that impose their will on the movement of price throughout each and every segment of this market. How simple it is to adopt such basic view of the digital currency markets
Market orders allow us to exchange any amount of coin right away at the current market price. Orders are filled using the best available price in the exchange’s order book. For example, if you placed a market buy order for $100, it would buy from the lowest priced sell order(s) until you had used that $100. The advantage is that this transaction is always completed immediately; the disadvantage is that we don’t know exactly what price we are going to get.
The Verge (XVG) technology revolves around providing an incredibly safe, private, and fast digital payment transactions – on an everyday basis. It offers all individuals and businesses a fast, efficient, and a decentralized option to make and receive direct payments in an average 5-second window per transaction. It runs on open-source technology, it is not a private company, and it isn’t funded by pre-mined coins. This is one of the reasons why people are so excited about it, all of its development, marketing, and other endeavors are completely done by the community – for the community.
Bitbuy.ca is a Canadian owned and operated digital currency platform. Originally founded as InstaBT in 2013, the company’s mission is to provide convenient, dependable and secure access to Bitcoin and other digital currencies. Customer service, ease of use, and quick turnaround times for deposits and withdrawals are pillars of this platform. They cater to beginners as well as experienced traders, and are one of Canada’s quickest growing buy/sell platforms. A great choice for users looking to buy and hold crypto, or users looking for a reliable on-ramp to turn their fiat into crypto quickly and easily.
No, the successful trader is not me. I’ve gotten lucky a few times and I’m still refining and trying out strategies; on the other hand, I’m part of communities of people who trade on a daily basis to grow their portfolios, and while some of the results can be attributed to luck, a majority of it is based on fundamentals, good habits, and experience.