How to make money on the cryptocurrency exchange?

How to make money on the cryptocurrency exchange?

How to make money on the cryptocurrency exchange?

There are three types of making money on exchanges. The first type is long-term investments in the spot market. The second type is short-term speculation. The third type is leverage trade. An investor's return is directly related to risk. The more short-term the transaction, the more money it can potentially make. This is especially true in the case of leverage trading in the futures market. But the risk of going into the red, or being completely liquidated on the transaction is appropriate.

After registering on the exchange and verifying the account, the user will have access to one of the types of trading. In the case of the spot market, you just need to select the required cryptocurrency coin in relation to a currency pair or another coin, and indicate the required amount for purchase. After that, the transaction will be displayed and you can observe the current gain or loss.

Strategies for making money

We recommend using grids of 10 or more levels to increase profitability. To do this, you need to set limit orders for price reductions. Thus, if the price goes down, the user account will automatically buy additional coins. This allows the cost of the total investment to be averaged. Thus, the investor's portfolio grows, and if the price rises, the profitability will come not from one transaction that was made initially but from all support levels where the coin was additionally bought.

Also, futures trading is available. However, we are not recommended for beginners to use it, as there is too great a chance of losing all funds. The main function of leverage is to accelerate the result. Thus, if an investor places $10 on a BTC/USDT pair with a leverage of x100, he will receive an income of $1000. The higher the leverage, the greater this amount. It works the other way too. If the asset price falls by at least 1% with x100 leverage, the transaction will be liquidated, causing the client to lose $10. Also, the higher the leverage, the higher the transaction fee, since it is assigned not from the amount of the margin, but from the amount of the leverage.

It is best for beginners to use simple strategies in the spot market, where there is practically no risk of losing funds if they do not fix a loss but additionally buy on drawdowns. In the futures market, we do not recommend beginners to use leverage above x3. Using levels with leverages does not make sense, since all positions will be liquidated in case of a large drawdown.

How to exchange cryptocurrency

You need to use an online cryptocurrency exchanger to transfer funds. CryptoExchanger provides online exchange services for the most famous coins. In this case, the exchange rate is automatically fixed based on the market asset price. For example, you can exchange dash for ethereum (ETH) automatically within 5-30 minutes. The exchanger also displays the current status of the application, so that the user can monitor the transaction process.

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