Today, the bitcoin exchange rate is changing daily. The fluctuations reach 10-20% or even 50% at times. Therefore, bitcoin trading is an excellent opportunity to earn daily on the difference in rates. In this article, we will discuss how to trade bitcoins on the exchange in Russia.
Weigh your resources
Bitcoin’s high volatility makes trading quite risky. 90% of newbies who come to this market hoping to make quick money lose their money and quit trading. Try to avoid their mistakes and prepare yourself.
Before trading bitcoins on an exchange, study its mechanisms with a practice account. Many deals offer versions with a virtual balance. As soon as you gain enough practice, you can start buying crypto-assets.
Buying and selling currencies through an exchanger is a slightly more manageable task. Short artificial rate hikes provoked by other traders are eliminated, and the transaction is faster.
Know the asset
The first commandment of a successful trader: know what you are buying and selling. Read some literature and articles about Bitcoin, listen to lectures on technical and fundamental analysis, and study the experience of investors and traders. Remember: it is not enough for you to analyze the bitcoin price fluctuations chart; you must be able to predict them and choose the right moment to buy.
Choose a Bitcoin trading floor
Exchanges
On exchanges, you interact with other traders to buy or sell cryptocurrency. It’s like an automated bulletin board: some individuals put up offers with a specific price, while others purchase the designated terms. Due to this, the exchange rate is constantly changing, and they earn commissions from transactions.
Cryptocurrency exchanges mean the exchange of one cryptocurrency for another; fiat exchanges mean exchanging crypto-assets for real money. There are also peer-to-peer exchanges, where users publish ads for exchanging cryptocurrencies.
Examples of popular exchanges today: are Coinbase Pro, Huobi, and Kraken.
The interface of exchanges can be complex for newcomers because it contains many data about quotes. In addition, on sales, you must verify your identity to participate in the auction; you will not be able to remain anonymous.
A significant disadvantage of stock exchanges is that they are often exposed to hacker attacks, resulting in traders losing their money. In 2020, when many office workers began using less secure home computers, the global economy lost $1 trillion to hackers. Cryptocurrency theft remains one of the most popular cybercrimes.
Exchangers
An exchanger works centrally: you send the desired amount in fiat currency and receive the equivalent amount in cryptocurrency or vice versa. The exchange rate is based on the quotations at the international exchanges
An exchanger implies that you buy currency there directly; the competition between exchangers is quite high. This is why exchangers often offer more favorable rates than exchanges, especially for popular crypto-assets. However, be vigilant: too expensive a purchase price may indicate the unscrupulousness of the exchanger.
The interfaces of exchangers are more straightforward, and buying and selling currencies on them is fast because you do not need to wait for another trader to be interested in your offer.
You can use exchangers while remaining anonymous: you only need an e-mail address and a wallet address to register.
Selection Criteria
Protection
Hackers have already targeted many cryptocurrency sites. Ensure they have card verification, two-factor authentication, and other security methods. Do your research on a marketplace’s reputation: If someone has already lost money on it due to fraud attacks, your funds will also be at risk.
Some exchanges are not available in some countries. Choosing an international business with the broadest possible range of potential contractors is better.
Experienced traders do not recommend keeping large amounts of money on exchanges, only what you need for a quick sale or exchange. Firstly, this tactic will secure your main stock of funds, and secondly, the withdrawal of funds from the exchange account to the card involves the payment of commissions.
Reviews
Learn about the site’s reputation, cases of hacking, fraudulent management, and support can be found from the reviews of those who have already used its services. It is best to choose large exchangers and famous exchangers. Mine.com, for example, has been operating for five years and processes over 5,000 exchange requests daily. Technical support runs like clockwork – you will get quick advice or help at any time.
Marketplace Registration
Before trading bitcoins on the exchange, you must create a verified account. Many exchangers require uploading documents and confirming your identity.
To use the exchanger, you only need to provide your name, contact information (e-mail, less often phone number), and a password.
In any case, it is better to connect the two-factor authentication to protect your account immediately. To trade, you will need to add a payment method: it may be a cryptocurrency wallet, bank account or card, e-wallet, or other payment instruments.
Don’t make hasty decisions
No one will give you a universal recipe for correctly trading bitcoins. However, some proven rules will help you not get broke at the very start and possibly succeed in the future.
1. Allocate your assets so that you always keep some of them in reserve (usually about one-third).
2. Carefully monitor exchange rates, both on exchanges and in exchangers. Over time, you will find a good and convenient pool of sites and develop your trading tactics.
3. Do not rely solely on the news. Many factors determine Bitcoin price. Technical and fundamental analysis are used to take them all into account.
4. In brief, the technical one is based on the history of rate fluctuations. If the price changed in the past under similar conditions, it is assumed that it will behave similarly in the future.
5. Fundamental analysis takes into account a maximum of factors affecting the market condition. These include macroeconomic changes, economic conditions in general, and the need of individual industries. As a rule, fundamental analysis is made by experts.
6. In their actions, traders can either combine both approaches or choose one. If you neglect analytics, you will not be able to distinguish the artificial inflation in the asset’s value from the growth of the rate, supported by actual events.
