My own thoughts about "Crypto Trading" - Written by @nachomolina
My own thoughts
"There are multiple options that the cryptocurrency offers as a virtual asset since it has been selected to trade securities securely, quickly and effectively in the framework of blockchain negotiations from which it is expected to obtain a return on investment with its respective profit margin."
Through a smart contract it is possible to invest while maintaining anonymity and avoiding the annoying protocols commonly seen in banking transactions when working with fiat money. The amount invested will remain blocked until the negotiation is completed and both parties reach consensus.
The cryptocurrency has diverse properties that make it adaptable to the needs of the client, among them is its equivalent value in organic money, as there may also be support in some other type of asset, such as: Gold, silver, gems, among others .
"There are exchanges that allow you to store cryptography and at the same time exchange them for some other equivalent par."
We find bitcoin as the most valuable cryptocurrency on the market and with which the most substantial operations are carried out, also the ERC-20s that operate under the Ethereum blockchain.
Some Stablecoin like the Tether, whose value is anchored at 1 USD, like the DAI; Others, like Gold, are backed by gold.
These are just some of the most renowned crypto assets today and each one has been created under a specific protocol according to their performance. In general, they can all be negotiable on blockchain and have their equivalent pairs, each with a financial behavior that will depend on supply and demand.
"It should be noted that the functionality of the exchanges is very wide and there may be the collection of commissions per operation, the variability of the rates is according to the type of crypto and the criteria handled by the exchange. Therefore, accumulating crypto is a good option, but it is by trading with them that the greatest profit is actually made."
"Fluctuation is one of the most interesting properties of cryptocurrency, an effect that occurs constantly according to the mobility of the market."
It should be noted that these movements associated with buying and selling comply with certain patterns that are usually repeated over time, becoming a reason for study for many, given that this is where the profit margins are generated for any investment in the short, medium or long term.
According to the aforementioned, it could be inferred that the purpose of the cryptocurrency is not only limited to the accumulation of encryption for the payment of products or services offered in the blockchain, but it is also understood that its greatest benefit is achieved when Trade between pairs taking advantage of the ups and downs of the market to obtain a percentage of profits for each exchange.
"Crypto Trading is the action of buying or selling cryptocurrencies in the market with the sole objective of making profit from such transactions."
It consists of taking advantage of the low prices of some crypto to buy and then when the price of said cryptocurrency rises, proceed to sell it.
To make a truly effective trading, you must follow a certain crypto to try to predict the behavior of the market, it should be noted that these changes do not occur randomly, but correspond to a historical trace that is woven over time.
The technical analysis is achieved from the interpretation of the charts, by which we consult the registry of the crypto in the past and try to elucidate the future of it. These records are given by the group of users who make life in the virtual market, to which are added a series of human aspects, associated with psychological aspects, communication, emotions and impulsiveness.
"This set of characteristics originate investment cycles with a high probability of being repeated as a function of time."
"This creates the "trend", bullish or bearish behavior, which represents the point of greatest interest in trading because it is preserved for a certain period of time in which the most important decisions governing the destination of the investment."
In my personal opinion, trading is a good option when working with crypto, but its handling must be done with total caution so as not to obtain unfavorable results.
The more money we put into play there will also be the possibility that we will lose significant amounts, I think we should venture into trading betting small amounts while gaining enough investment experience.
In the same way, a small profit margin for daily operations can represent a lot of monthly money, therefore I think it could be seen more as a possible long-term investment.
"The study of patterns or graphical indicators should be our main function to go towards financial success, in particular, it is better to do few well-founded and low-risk operations, than to do many without having the proper technical focus."
My final thoughts
In this way I conclude that to trade you must have a lot of concentration and mental peace to make the best decisions, I see that it strongly links the emotional factor, so it is very easy to make mistakes that can seriously affect us, therefore at the beginning our objective should be gain solid knowledge.
"When you start your own business at the beginning it seems to be something very difficult, but over time you gain experience and soon you will see it as something comfortable and sustainable, so is Crypto Trading."
Note: "I decided to share this post again and some content modifications and markdown, to adapt it to the English language in the most correct way. I hope you can have this content. These are my own thoughts expressed in the simplest possible way with the intention that it can be useful to the largest number of users of the platform. Thank you!".
|Regards, I hope you enjoyed reading.|