Similar to stock trading, cryptocurrency trading is an efficient way to earn money from buying and selling assets. The difference is the increased risk when dealing with crypto coins. The cryptocurrency market is still very young and unstable.many factors influence live crypto prices Drive up and down every day.
To trade in cryptocurrencies, you need to understand some basics about the market.
- How are live crypto prices formed?
- What is trading volume?
- What are uppercase letters?
- How do trading strategies work?
- Which cryptocurrency exchange should I choose?
Let’s talk about trading volume.
What does trading volume mean in crypto?
If you look at the crypto rankings on the Coinmarketcap resource, you can see the categories of assets arranged in the order in which they can be manipulated. That is, sort by trading volume, price, or market capitalization.
Trading volume is the total number of cryptocurrencies traded across all platforms (usually measured over the last 24 hours). For example, opening a cryptocurrency exchange such as WhiteBIT will show the trading volume of the assets traded on this platform. Volume indicators can be displayed in dollar equivalents or number of asset units.
For example, the BTC – USDT pair is traded on the WhiteBIT exchange. The pair’s total volume reached 84,885 on the last day (24 hours).
Trading volume is a key indicator that underlies indicators such as liquidity, trends, and more. In fact, trading volume indicators determine the liquidity of an asset. Liquidity indicates how easy it is to sell or buy an asset at its current price. The higher the liquidity, the better. Suppose you want to sell BTC. There will always be buyers. Therefore, Bitcoin will always have liquidity.
The higher the trading volume, the higher the liquidity, the less sensitive the asset is to market fluctuations, and the higher the stability.
How to invest in cryptocurrencies?
Choose a liquid asset with sufficient market capitalization and use one of the large and reliable cryptocurrency exchanges such as WhiteBIT. Then apply a crypto converter to quickly buy coins at current prices. WhiteBIT allows you to invest in cryptocurrencies using fiat currency. Simply select the fiat currency you have and the assets you want. After that, pay your commission and the coins will arrive in your account within minutes.
Is cryptocurrency trading difficult to understand?
It is important to realize that trading cryptocurrencies does not resemble gambling. To succeed in this field, it is not enough to rely on luck alone. Trading cryptocurrencies involves a great deal of effort, including:
- Comprehensive market and price chart analysis.
- Fundamental research on external factors that affect cryptocurrency prices.
- Assessment of investor sentiment.
- crisis management.
- Familiarize yourself with cryptocurrency trading strategies.
- Implementing diversification tactics.
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