Crypto trading and investment have become the most popular option for making money on the Internet. The market of digital assets stands out by its increased price volatility. Open a Coinmarketcap resource and look at crypto assets in the list. You will see that cryptocurrency prices live do not stand still and show slight fluctuations all the time. Those price movements open wide opportunities for investors and traders to receive income.
Trading implies buying and selling digital assets to receive a profit from price changes. Cryptocurrency trading implies using strategies:
- arbitrage – trading on several exchanges simultaneously or opening parallel positions within the same exchange;
- daily trading – opening and closing positions within 24 hours;
- scalping – short traders that open and close within 30 minutes;
- position trading (the period between opening and closing positions may last up to several months);
- swing trading (positions can be closed in one day or up to a couple of weeks).
These are the most common strategies to follow in crypto trading. Unprepared users may face many difficulties when using strategies for trading. They require deep knowledge of the market and detailed analysis of assets, technical research, and evaluation of external factors that can affect crypto prices.
Where Can I Practice Cryptocurrency Trading?
WhiteBIT is the biggest crypto exchange in Europe, offering over 400 pairs for trading and the possibility to deposit and withdraw fiat currencies. On WhiteBIT, you will find cryptocurrency prices live and crypto charts to evaluate the price indicators and patterns.
The crypto exchange allows practising demo trading using demo tokens. In this case, a user does not have to deposit money into the account. Demo trading allows one to investigate all possible pitfalls of trading strategies and see how it works. Many advanced users come up with their own startegies, adding new details in existing strategies. Demo trading allows understanding if it works right and which details need to be improved before using on real markets.