Crypto trading essentials
The cryptocurrency fever continues. “Digital gold” is still an attractive investment object, and trading is one of the most popular ways to make money on crypto money. In the current article, we will discuss crypto exchange rates.
Your earnings depend on several factors such as:
- The amount of working capital. The more it is, the higher the trading income is.
- The ability to trade. Buying any coin and waiting for it to grow is stupid. You need to analyze the market, buy, and sell on time.
- The market situation.
The proper selection of currency is the most important and crucial moment as your earnings directly depend on it. Choosing a token always starts with market analysis. An investor should pay attention to the following factors:
- How popular the coin is.
- Practical benefits. Blockchain enthusiasts are interested in crypto coins along with investors in terms of getting practical benefits out of them, for example, it is convenient to pay with crypto in online stores.
- Exchange convenience. If a currency is not traded on exchanges and it is difficult to convert it into fiat, there will be no massive demand for it, which means that you should not expect a rise in its value.
- Information field. If it is often written about a coin in the media, it grows in price.
- Capitalization. The higher it is, the more difficult it is for the stock “bulls” to influence quotes.
- Turnover. It makes no sense to buy a crypto coin, which daily turnover is only a few thousand US dollars.
How to trade cryptocurrency?
As a rule, each experienced trader has his own strategies, but if we summarize and highlight the most widely used ones, we get the following list:
We use short-time exchange rate movements, in other words, we do not open long time orders as the latter remain open for a few hours, minutes or even seconds. Being a classic active trading strategy it mitigates the risks associated with increased volatility of digital currencies.
We buy crypto on one site and sell it on another one but at a higher price. Popular tokens are traded almost on all the crypto exchanges. Their rates on different sites often vary. The method looks simple, but it has its pitfalls such as:
- Commissions of exchanges.
- Transaction fees.
If you choose arbitration, calculate the additional costs in advance.
Formation of a crypto portfolio
We buy several tokens, both popular crypto-coins, and little-known but promising altcoins, and we are waiting for their growth.
This is a long-term investment method and one of the riskiest. But the risk is reduced due to the fact that there are different altcoins in the portfolio. If one token falls in price, the other can grow decently and compensate for losses.
“Buy and hold”
We buy online currency and store it in the wallet until it becomes more expensive.
The method is risky, but promising. When choosing a digital asset, attention should be paid not to “overheated” crypts, but to underestimated altcoins.
Trading Bitcoins or other altcoins on the exchange without relevant education and knowledge will be very difficult for successful results in this area. The main rule of money management is diversification, in other words, you can’t “put all your eggs in one basket.” Finally, industry experts do not recommend holding only one asset and trading a large amount (credit card, debt, real estate sales for investment purposes, etc.).
Most active cryptocurrencies
There are more than 1.7 thousand digital currencies in the world today with more than 600 active cryptocurrencies, and the market value of 30 coins is over $ 1 billion.
When choosing options for investing in cryptocurrency in 2020, many analysts and popular members of the crypto community-recommended paying attention to the assets with a high capitalization and a good history.
Bitcoin is the most widespread among them. In the context of the pandemic and the financial crisis of 2020, the BTC exchange rate has shown stability. Due to the departure of altcoins from the market, Bitcoin continues to augment its positions as it accumulates investments from deceased projects.
Ethereum holds second place in the ranking of the most popular coins. The project developers are getting ready to transfer the cryptocurrency to the PoS algorithm. The changes will make ETH more sustainable and more manageable. According to crypto experts, ETC position allows this cryptocurrency with the smart contract technology to “dictate the terms to the market,” which makes it similar to Bitcoin. The independence of the project has a positive impact on the stability of its digital asset price.
The market capitalization of Ripple’s cryptocurrency startup puts it in third place in the ranking.
The growth of users` number of the XRP-based technical solutions has a positive effect on the demand level for cryptocurrency, thus, new partners regularly join Ripple.
Best places to buy and sell cryptocurrency
While planning to buy cryptocurrency a user understands the inherent risks of such operations either in terms of possible decrease in the price of coins or existing large amounts of scammers on the market who want to bask in inattentive or too gullible investors.
In order to avoid fraudsters, it is worth buying and selling cryptocurrency in reliable exchange services that have been gaining credibility over the years such as Godex.io. According to the ratings in the recognized surveys, Godex.io is one of the best crypto exchange services on the market nowadays, working with any amounts without limits. It neither works with third parties, nor uses incomprehensible exchange schemes or any hidden fees ensuring transparency of transactions. In order to minimize the risks of crypto market fluctuations and financial losses Godex.io provides the customers with the fixed rate during the transaction proceeding until its completion.
Therefore, the decision on when to buy or sell coins is in the sole responsibility of each investor.
Cryptocurrency rates how to check
Сryptocurrency is an artificial payment system, equated to real money, with an official exchange rate. In simple terms, crypto exchange rate is the value of one cryptocurrency expressed in terms of another cryptocurrency or fiat money.
The factors for price movement forecasts which are standing behind the cryptocurrency rates are the following:
Media are effective means of manipulating the public mainly for short-term forecasts.
Opinion leaders often control the market through doubts, uncertainties, fears of missed opportunities but it is better to think for yourself and not always follow the majority.
New platforms, growing investor`s interest and the roll-out of innovative features have a positive impact on long-term rate growth.
Comparing the movements of different cryptocurrency rates, it is noticeable that some of them are in correlation with each other. Thus, many altcoins repeat the rise and fall of Bitcoin.
Political news can only warn about a short-term change in the exchange rate of a particular coin.
The business industry is striving to implement blockchain technologies into its infrastructure and the range of application of cryptocurrencies as a means of payment or investment is expanding.
So far, Bitcoin takes a leading position, but its technology has long been recognized as imperfect, the network will sooner or later reach a critical point, and then the coin will give way to more modern solutions.
Just one mistake in the code can deprive thousands of cryptocurrency owners of funds and lead to a market crash.
Resources with live cryptocurrency rates
Along with the crypto industry, websites accumulating statistical data, storing historical information, building charts, showing exchange rates live and influencing the market began to develop.
CoinMarketCap is the most quoted crypto resource and a free tool for cryptocurrency analysis. Both newcomers and old-timers of the industry know about it. The main page, by default, shows the rating of coins by capitalization, indicating prices, trading volumes per day, cryptocurrency rates live, the amount of currency in circulation, and other data.
CryptoCompare is a real portal about cryptocurrencies, which is not limited to charts and statistics, but also publishes articles, educational materials, collects news, maintains a forum, and allows tracking users’ personal investment portfolio. The data on the site includes reviews and ratings of crypto exchanges, wallets, ASICs, video cards, and ICO projects.
Godex.io exchange service brings forth the live tracking on actual rates, rate changes, the trading volume of (200+) crypto coins. For the purpose of ensuring the optimal rate for the customers, Godex.io interacts with top reliable crypto exchanges in order to bring forth the relevant trading essential features along with exchange rate comparisons.
Exchange cryptocurrency rates to consider
The price of cryptocurrencies is set on the basis of a floating exchange rate, which is regulated during direct trading on cryptocurrency exchanges. The formation of the crypto prices is determined by the following features:
- Decentralization of cryptocurrencies means that there are no direct regulators, such as central banks, that can influence the price of a currency, reduce its daily volatility, and also determine the base interest rates.
- Lack of a legal framework that prevents various speculations, since cryptocurrencies are still not legally described in most countries.
- Purchasing power parity may vary widely from country to country.
- The price of cryptocurrencies is provided by supply and demand on the exchange, just like ordinary money. However, classical national currencies stimulate demand (and, consequently, the price) for their currency also with regard to legislation.
- By tracking order books on major cryptocurrency exchanges, you can get a real picture of the short-term supply and demand trend, find out where and at what price stop-losses, and buy-ins are accumulated.
- The bulk of cryptocurrencies is a deflationary commodity by definition due to technical restrictions on coin issuance, which is not the case for national currencies.
Despite being pegged to real money like the US dollar or the euro, digital money is “valuable in itself.”
When making forecasts for price movement, analysts use a huge number of tools. One of them is the trading volume indicator, which is an important part of technical analysis which is tracking the number of transactions made for a specific cryptocurrency over a selected period of time and monitoring the existing demand for the token and fixing its rise or fall. When analyzing a particular pricing model, it is expected that its completion will be accompanied by an increase in trading volume.
Exchange Pair How To Define It
All users join the market only after a fundamental analysis including consideration of several cryptocurrencies in order to select the asset that can result in the maximum profit.
First, you need to find out the most sought-after crypto trading pairs on most exchanges. As usual, we see a lot of orders with a particular coin to USD pair. If we talk about cryptocurrency pairs, then BTC/ETH, BTC/LTC, USDT/BTC, ETH/LTC are the most popular ones.
Via Godex.io you may find out the exchange rate of the more than 200+ crypto coins and their trading pairs. For example, you may easily check XMR to ETH exchange rate, XLM to ETH exchange rate or ETH to VET exchange rate comparing coin 1 and coin 2 in the trading pairs using the Godex calculator.
Exchange, for example, USDT or TRX to ETH, NAS to MCO, and many more without any risk and on favorable terms from Godex.io reliable partner platforms. You will find the most profitable USDT to ETH exchange rate, TRX to ETH exchange rate, and NAS to MCO exchange rates on Godex.io platform which are fixed until the conversion is completed protecting the customers from the unpredictable rate fluctuations.
Which cryptocurrency exchange has the best rates
Among a huge variety of existing crypto exchange platforms cryptocurrency exchange services like Godex.io with the fixed rates play a very significant role.
Such an exchange service guarantees the fixed rates which do not change during the whole duration of the transaction from the order creation until its full completion regardless of market fluctuations.
Which is the best Cryptocurrency exchange?
There are three adequate methods for purchasing and selling crypto such as:
- Payment systems like Payeer, PerfectMoney, Advcash;
- Online exchange services.
They all work online so that you do not need to get up from your computer and go somewhere. There is a fourth way which means dealing directly with the seller or the buyer. This method is dubious as firstly, it is impossible to conduct it online. The chance of fraud stubbornly tends to 100%. Secondly, it is inconvenient, you should go to a personal meeting.
Godex exchange service being an intermediary company helps people make transactions with virtual coins. This method of exchange is broadly preferred due to the high level of security. Godex.io gives its customers the following advantages which include:
- High operational speed.
- Ease of trading. No registration required.
- Profitable transactions without exchange limitations, a small commission, fixed coin rate.
Is it wise to invest in Cryptocurrency?
There is an opinion that digital money will soon replace fiat money but most probably this will not happen in the next 20-30 years. People will continue to receive income in fiat, companies will file reports and pay taxes in fiat. Yes, payment for services and goods in cryptocurrencies will gain momentum, especially in areas where the use of fiat creates problems. Therefore, the development of crypto processing systems is one of the trends of 2020 and the significant reasons for investing into cryptocurrencies are the following:
- Haters turn into active supporters. JP Morgan CEO Jamie Dimon in 2017 considered Bitcoin as a scam and now his company is creating its own crypto coin.
- Trading firms that are accepting cryptocurrencies as a means of payment grow in number. Here are some examples:
- Mastercard creates a debit card with Bitcoins;
- Fidelity is committed to offering crypto trading.
Is it a good time to buy crypto?
2020 brought an enormous number of events to humanity. The coronavirus pandemic led to the widespread quarantine, closure, and bankruptcy of many small and medium-sized businesses caused a collapse of global financial markets, which led to a crisis, job cuts, and other negative consequences.
At the moment, the situation in the financial markets is uncertain. The threats associated with the second wave of COVID-19 as well as the US presidential elections could negatively affect the quotes of risky assets and positively affect defensive assets. Uncertainties always put pressure on global financial markets and can bring losses to investors. This fact raises a completely logical question: is it worth investing in such a turbulent time?
In 2021/22, most members of the crypto community believe that the BTC value will rise to at least $ 50,000. If to speak about other altcoins, it is worth paying attention to the DeFi development, in which Ethereum plays a key role.
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Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.