QUOTEX TRADING CRYPTOCURRENCIES
QUOTEX TRADING CRYPTOCURRENCIES is one way for a Quotex investor to profit from trading cryptocurrencies in the world with various types of digital currencies traded
STEP – STEPS TO TRADING CRYPTOCURRENCIES
1. Define cryptocurrency
If you want to become a crypto trader, the first thing you have to do is decide which cryptocurrency you will own.
Before choosing a cryptocurrency, you should first understand the trends in the market for the purposes of price speculation.
Well, so that the price estimate is not wrong, you should take advantage of the help of a broker.
Usually, he will encourage you to prioritize the type of digital currency that is experiencing a decline in value. With that, the purchase price will be cheaper.
However, before owning cryptocurrency, you also need to be registered in an exchange forum.
Day Trading advises beginners to use Bitmex. This application is practical and quite friendly for new players in the world of crypto trading
2. Enter funds in the account
Furthermore, to become a crypto trader, you must enter funds on the exchange forum account.
These funds will later be used for the purposes of buying and selling cryptocurrencies in the market.
Usually, you need to verify your identity before entering the bank account data that will be used.
However, you don’t need to worry, all verification needs are important for the security of your account.
3. Buying cryptocurrency
The final step is to buy the cryptocurrencies available in the market.
As Glints has already explained, the best crypto trading strategy is to buy an asset when the price goes down and sell it when the price goes up.
Keep in mind, though, that you can buy or sell cryptocurrencies on a broker’s demo account.
However, this cannot be done through an exchange account.
In fact, crypto trading is more about price speculation and not owning the coins.
BEST TIPS TRADING CRYPTOCURRENCIES ON QUOTEX
- Learn first the possible risks that can be present
- Have a neat portfolio diversification
- Don’t involve emotions, like fear or FOMO
- Always have a plan B
- Follow the strategies of more experienced traders
- Choose a trusted trading platform
Make sure the security of your data and assets is qualified
Weaknesses of Crypto Trading
1. Very High Risk
The value of Bitcoin and other coins can go up by hundreds of percent indefinitely. However, the risk of decline in value is also unlimited. It is possible that investors or traders who made a profit yesterday could lose out due to buying and selling crypto assets.
This is different from investing in the capital market such as stocks or equity mutual funds. On the Indonesia Stock Exchange, the maximum limit for stock declines in a day is 7 percent and will immediately activate the auto rejection system. If the decline occurs for days, the Exchange authority can also apply a temporary trading suspension (suspension) so that the losses of stock investors or equity mutual funds can be limited.
2. No Fundamentals to Analyze
Cryptocurrencies like Bitcoin, Ethereum, Ripple, Tether, and Doge are not currencies like rupiah or US dollars. Because, even though it is called a coin or money, this crypto is not a currency that has a fundamental basis such as the economic condition of a country, reference interest rates, and other macroeconomic data.
Crypto assets also cannot be analyzed in terms of fundamentals such as shares of issuers whose companies have income, business operations, profits and dividends. As for mutual funds, you can see the contents of their portfolios listed in the fund fact sheet. Therefore, it is very difficult to predict and analyze the valuation or fair value of Bitcoin and other coins.
3. No Authority Body
As mentioned earlier, crypto assets exist due to blockchain technology which enables all transaction data to be automated. Since everything is governed by the blockchain system, there is no longer any human authority that makes the rules or can restrict trade. This means that there is also no investor protection or customer service, which listens to public complaints if anything happens to the crypto asset.