One way of profiting by way of investing is through Cryptocurrencies Trading. As a result of doing this form of electronic trading, there is always a huge possibility of big gains.
We accept cash and cryptocurrency from our users. As a result, they can make trading transactions using the different type of funds available on their balance.
The Exchange mode is perfect for those who want to buy or sell cryptocurrency, but:
– are using this type of platform for the very first time in their life and are not yet familiar with all of its features;
– are not interested in Trading and just want to invest in Bitcoin or other cryptocurrencies because they believe that in several years these cryptocurrencies will increase in value;
– do not want to understand the details of the process, but think that they can predict changes in currency rates and want to earn profits.
Cryptocurrency, created by a former employee of Google Charles Li, is already accepted by companies in the field of electronics, clothing, games, and advertising. The main characteristic of the Litecoin network is its ability to process a higher transaction volume compared to its counterpart, bitcoin. Another advantage is a large pool of coins, it is planned that in the course of history about 84 million Litecoins will be created, which is four times the number of coins in Bitcoin blockchain. Theoretically, this should allow Litecoin not to turn into an overly accessible currency, which could lead to its devaluation, but also protect it from becoming too complex to generate.
If bitcoin is “digital gold”, then ether is certainly silver. This currency boasts the second-largest market capitalization. The main difference between the rival platforms of bitcoin and the ethereum lies in their purpose and capabilities. Thanks to the technology of smart contracts, the ethereum allows you to create not only currency but decentralized applications, which attracts large technology players such as Intel and Microsoft to the project. Platforms for buying Ethereum provide an opportunity for those wishing to purchase a reliable cryptocurrency online. Participants in a transaction are not required to open a cryptocurrency purse since the exchange itself provides its users with a personal wallet for each virtual coin.
Bitcoin Cash appeared as a result of the division of the bitcoin registry. On its second day of trading, it has tripled in price and is now third in market capitalization among digital currencies. The aim of a new version of Bitcoin is to speed up the process of transactions on the network. During the split, every owner of bitcoin was entitled to receive Bitcoin Cash on a one-for-one ratio for free. The protocol update was supported by the majority of members of the bitcoin community, as well as some exchanges. The presence of two different bitcoins should not be a problem for private investors. Given that Bitcoin and Bitcoin Cash have different characteristics, their price will start moving independently quickly.
The main distinguishing feature of Dash is the Darksend algorithm. In order to make transactions anonymous, special servers called Masternodes collect and execute several transactions at once. As a result, it becomes extremely difficult to track whose coins are transferred and for whom. Thanks to the mechanism of intermixing payments, Dash is the most confidential cryptocurrency today. Another key feature of Dash is the hashing algorithm X11 which allows users with less powerful equipment to compete with those who use specialized equipment for mining.
Altcoin Cardano (ADA) is a cryptocurrency that operates on a specially designed blockchain platform using a special protocol and the principles of scientific philosophy. The developers of the project originally performed the deconstruction of the basic concept of cryptocurrency, integrated into the Proof-of-Stake system, incorporated their own algorithm Ouroboros. In fact, they created the platform and Cardano (ADA) coins not according to the pattern of an existing project, but created their offspring from scratch. The IOHK developer company was the first to use the results of scientific research to implement useful findings in its project.
Metaverse is a decentralized open platform with intelligent features and digital identities. The platform is based on public block technology. The goal is to create the infrastructure of the “Value System” by combining digital assets and digital IDs and also to create a new economic model. The open-source project revolves around the use of Entropy tokens (ETP). It represents the rights and interests of Metaverse. The total issuance amount of ETP is 100 million, and the smallest unit of ETP is 0.00000001 ETP. The security of ETP is guaranteed by the ECDSA (Elliptic Curve Digital Signature Algorithm).
The main innovation behind IOTA is the Tangle, a revolutionary new blockless distributed ledger which is scalable, lightweight and for the first time ever makes it possible to transfer value without any fees. Contrary to today’s Blockchains, a consensus is no-longer decoupled but instead is an intrinsic part of the system, leading to a decentralized and self-regulating peer-to-peer network. The purpose of its development was to revise the functionality of the blockchain with the help of an additional protocol MAM (Masked Authenticated Messaging) and Flash channels. IOTA transactions are free, regardless of their size, the transaction confirmation time is short, the number of simultaneously processed transactions is unlimited, and the system itself is easily scalable.
Qtum (read Quantum) is a Chinese hybrid platform that connects existing block circuits to a virtual machine like Ethereum. This is a platform that allows developers to create applications and smart contracts on the current blockchain technology. The purpose of the platform is to change the way that application databases are stored. Instead of a centralized method of storing the database on a single server, applications running on the Qtum platform will be stored in the database as transactions on the blockchain.
Ripple is a unique kind of digital currency that was launched in 2012. It serves as a tool for instant conversion of any currency into another without a central exchange. Because of this significant characteristic, an internal coin called XRP can’t be used for retail purchases. Absolutely every member of the Ripple system can create its own «exchange office» for goods, services or currency. Transactions in Ripple are made on a consensus basis, so there is no need for arbitration as the system transfers funds only between users who trust each other. All transactions of the Ripple system can be reversed, which is a valuable advantage which differentiates Ripple from other cryptocurrencies.
EOS is the operating system based on blockchain consensus, which provides access to databases and user accounts, planning, authentication and communication for Internet applications in order to significantly improve the efficiency of intellectual business development. It uses parallel data processing, which ensures the scaling of blocking up to millions of users and millions of transactions per second. The cost of EOS began to grow during the second stage of the crowdsale, pulling up to the current value of the tokens at this stage and amounted to the peak of $ 5.35/EOS (the second stage of the ICO EOS ended with a price of $ 6.10/EOS). The capitalization of EOS at the moment is $ 790 million, which makes it possible to occupy the 9th place in the top of the cryptocurrency market.
Ethereum Classic (ETC) is a block-based cryptographic platform for developing decentralized applications based on open-source smart contracts. It is a decentralized Turing-complete virtual machine, the Virtual Machine of the Etherium (EVM), which can execute programs on public nodes of the network. Ethereum Classic provides the currency “Ether” (Classic Ether, ETC), which can be transferred from one network member to another and used to pay for calculations made by public nodes of the network, as well as the ability to create your own digital assets (tokens) on the Ethereum Classic. Ether, paid for the calculations made, is called Gas. It serves not only to pay for the calculations but also prevents DDOS attacks on the network.
The first in the world and the most popular virtual currency on the market. Although it’s legal status may vary in different countries, bitcoin transactions are allowed in Japan, Canada, USA, Singapore, some countries of Europe, Australia, etc. The inability to counterfeit the Bitcoin and its complete decentralization have become undoubted advantages of this currency. Today the reputation of Bitcoin has become so strong that it is now accepted by large retailers, including Amazon, Subway and even Victoria’s Secret. If you still want to invest in bitcoins, you can buy this currency on one of the crypto exchanges.
The price will often go up or down according to what is happening in the news. For example, a big exchange getting hacked or a government announcing draconian legislation may make the price go down, whilst exciting new start-ups getting funded, established businesses integrating Bitcoin or friendly regulations being announced may all make the price rise. Trading the news directly is very difficult to do as your main strategy – because it’s difficult to always hear the news first and react instantly. Most of the time, the market will already have moved before you get there – although if you are an obsessive news junky who is always logged into an exchange website or app then you may be able to get their first often enough for it to be worthwhile. Another method is to capitalize on corrections. Often the market will over-react to big news stories as people get caught up in the moment or jump on the bandwagon without really thinking things through properly. Because of this a 20% fall, for example, will often be followed immediately by a 5-10% rise as the market corrects this over-reaction. This provides an additional way to trade the news and make a profit.
Fundamental analysis may be more familiar to stock market investors, but can also be used as a Bitcoin trading strategy. All it means is that you look at the fundamental data which affects the price – number of wallets, number of active wallets, number of transactions per day, volume traded on exchanges, volume reported by retailers who accept BTC, and so on. You then use this data to estimate what you think Bitcoin should be worth right now. You can then decide whether you think it is currently undervalued or overvalued (and how confident you are in that assessment) and then buy or sell accordingly.
There are many tools to help you profit, and minimize your losses. Two you should learn about are limit orders (which execute a trade at a certain price, whether you are there or not) and stop-losses, which can be used to lock in profits when the price changes direction after moving in your favor. You will also learn to read the market by keeping track of different indicators. Technical analysis is an extremely complex discipline, but you can start to understand the underlying trends and forces that shape the market by learning about volumes, moving averages of different kinds, and different patterns that emerge in the charts.
Is a way of profiting from downward movements in price? Usually you would need to buy chosen cryptocurrency to profit, selling them at a higher price and pocketing the difference. If you want to profit from the price falling, you have to own Bitcoins in the first place. You sell them and buy back at a lower price. This is the simplest way of shorting, but it only works if you have Bitcoins in your account.
With true short selling, you effectively borrow Bitcoins, sell them, and buy them back at a lower price before returning them to the lender – keeping the difference in price. This is carried out in various different ways (you may or may not actually be borrowing Bitcoins from the exchange or another user), but the effect is the same. You can also leverage your short sells in the same way that you would leverage a long position.
All of the methods described above are long or medium term strategies. They will probably take many months or years to generate a good return for you, and you can easily end up taking losses or making minimal profits for many months on end. A faster paced way to either make or loss yourself a lot of cryptocurrency you have is day trading – buying and selling on the basis of short-term price movements, over the course of minutes, hours or days rather than months or years. The most common strategy for day trading is ‘swing trading’. This method uses a range of technical indicators (see the section below on technical analysis) to look for the turning points in short-term trends. You can then profit from the daily swings up and down in the price of chosen cryptocurrency, regardless of whether the long-term direction is up or down. This often involves looking for ‘support’ and ‘resistance’ levels. A support level is one where a downward price level is expected to meet resistance as buyers come into the market to pick up a perceived bargain, whilst a resistance level is one where an upward price move is expected to meet resistance of sellers taking a profit
Unlike ‘value’ investing on fundamentals, where you might hold your investment for months or years, day-trading involves profiting from the short-term movements of a stock or commodity. These can happen on a time scale as short as from minute-to-minute or even less, since the markets are driven by sentiment and herd mentality as well as by appreciation of the long-term value or potential. Cryptocurrency is still in its infancy and has a relatively small market cap, and comparatively small amounts of money (by expert day traders’ standards) put into or taken out of it can push the price significantly one way or another – only to have the effect amplified by other traders who want to get in on the next major movement. At times of low volumes this can be particularly pronounced. It can also leave the market vulnerable to outright manipulation by those who hold large amounts of fiat money or Bitcoins, and dump them on the exchanges at strategic points in order to profit shortly afterwards.
Scalping is a strategy is applied mostly within short trading timeframes. The trading profit earned is the difference between bid price buying and ask price selling. Scalping works well in a quiet market ,and for smaller amounts.
There are two techniques commonly used by day traders to increase their profits from market movements. Leverage, or margin trading, means borrowing money on a short-term basis to speculate on the price of Bitcoin. The loan is paid back when you exit the position. For example: The price of Bitcoin is $500. You borrow $5,000 to buy 10 Bitcoins. The price of Bitcoin rises to $550. You sell your 10 Bitcoins for a total of $5,500. You pay back the loan of $5,000, plus interest (say, $50). Profit: $450, on a price movement of $50. Of course, you can also lose a lot of money this way: if the price goes down instead of up, you will lose ten times the price movement. This is what makes margin trading so risky – it is potentially extremely profitable, but can also be very costly.
This is a more complicated strategy compared to day trading where the timeframe can be as long as from many days to months. To execute this trading strategy, you will have to consider many different factors and analyze the long-term market trends. In general, positions can be opened as soon as a trend is established, and closed when it breaks.
Most financial markets will have long-term price trends, in which the general direction of motion will be in one direction for months or years at a time. The price will go up and down all the time, of course, but a clear trend will remain. Some longer term traders will simply look for this long-term trend and trade in that direction. You do not even have to spot the point at which a trend turns and a new one begins in the opposite direction, as long as you don’t need to cash out any time soon. If an average trend takes 1 year to complete, then it really doesn’t matter if it takes you 5 months to be confident that it’s a new trend – you will still be right enough of the time to come out in profit (this is a gross over-simplification, of course, but is simply meant to illustrate my point).
You can start day trading on any crypto exchange that has adequate liquidity. Smaller exchanges will have lower volumes, and therefore a larger ‘spread’ of bids (buy price) and asks (selling price). That means the price must move further before you achieve profit, and trades may take longer to execute. Therefore, sign up with a large exchange where you can be sure that liquidity and speed of trading will be suitable. And, as ever, make sure the exchange is reputable. The Crypto Arena broker offers the opportunity to trade cryptocurrencies 24/7 (Bitcoin, Bitcoin Cash, Litecoin and Ethereum, Dash, Ripple, IOTA, Cardano, EOS, Ethereum Classic, Metaverse Entropy, Qtum) on exclusive terms that are not available for any crypto exchange. Stop wasting resources to prove that you have to be successful in each deal. Remember, that there is no trader who never loses. But with the help of our services your chances to win will be high as possible.