The main task of the exchange player is to determine the most profitable strategy. Options for earning on the stock exchange today are not limited to trading s and investing. It is possible only with the basic knowledge to find the most suitable option for yourself.
How to make money on the exchange
“Buy cheaper and sell more!” This expression should determine the behavior of a trader at the exchange. Beginners often forget this in a panic, acting in exactly the opposite way.
The algorithm of actions:
- Choose a reliable exchange. Namely, that one which is really large, with impressive volumes of trades and positive reviews.
- Select currency pairs – actually, the object of trading. The talk is about two currencies, on the exchange rate of which the trader earns. The pair can consist of both: traditional currency and a cryptocurrency, for example, bitcoin / dollar (on exchanges – BTC / USD). This also could be crypto-currencies, for example, bitcoin / etherium (BTC / ETH). Here some tips:
– If the trader plans to earn on the bitcoin rate against the dollar, he must choose the first pair.
– If he plans to trade only with crypto-currencies – opt for the second.
– Beginners are usually encouraged to take couples consisting of a cryptocurrency and a fiat currency. – To predict fluctuations of a rate in such pair is easier at the expense of the greater stability of fiat currencies.
- The pairs for trading should be chosen based on the following criteria:
– First, they must be in active operations, I e, there must be many offers of buying and selling on it. This indicates the demand for currency; therefore, the trader will not have to wait long for the buyer.
– Secondly, it is necessary to pay attention to fluctuations in the rate of the cryptocurrency or volatility. Strong fluctuations can provide a good income, but for beginners, they could mean the same losses because it is difficult to foresee them.
- Analyze the current situation in the market and act in accordance with it. For a newbie, it is reasonable to wait for the price of the currency to fall below the average level and buy it when it approaches the past minimum values. If the moment is missed, you can buy it as soon as the exchange rate has started to increase slightly and is still significantly below the average. With the sale, it is a little more difficult. If the currency does not have a pronounced upward trend, it can be sold when it approaches the maximum.
- Study trading tools, as they repeatedly increase the efficiency of trading. Take out a part of the earned funds on external purses.
It’s crucial to understand that the yield of crypto trading is as high as 100% per month and more – depending on the trader’s experience. Since for beginners, it rarely exceeds 50% per month.
Expectations are high: a trader can make a profit by playing on any currency. If one becomes unpromising for trading, choose another. A newcomer can lose money at the start because of wrong decisions. That’s why it’s recommended to start with small amounts to try waters on the exchange rather than make a profit.