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What is “Trade Coin”
For those who have invested in Bitcoin, Ethereum, Ripple, Monero, Litecoin, the word “Trade Coin” or “Surf” maybe not so strange to them. These words all describe the act of buying and selling cryptocurrencies for the profits when the market swings. In detail, you need to buy some Bitcoins when the rate is low, and sell them when the rate is higher. Trade coin is used for the coin that has wide-range and rapid rate swings. The rate changes dramatically every day, even every minute.
To Trade Coin effectively, you need a lot of experiences, the skills of reading the rate chart, and a good intuition, assertiveness and luck as well. At present, most of the coins are affected by Bitcoin, thus, to know the trend of a coin’s rate, you must watch the Bitcoin’s rate first.
You should also note that you should only choose the coin that has been published to Exchanges. And, normally Exchanges just allow trading trusted coins. You can see the list of official coins in here: https://coinmarketcap.com/
The Bitfines exchange
Terminologies using in Trade coin:
– Dump: significant decrease.
– Pump: significant increase/
– Stop loss (SL): Cut the loss. When you buy some coins, but it keeps decreasing and shows no sign of stop, you should Stop loss. Accepting a little loss is better than losing all the money.
– Take profit (TP): Take the profit. When you feel your profit is big enough, you sell it.
– Support level: the point that the rate will rise back.
– Resistance level: the point that the rate will fall back.
– Volume: The amount of your transaction.
– Long: buy coins (use for margin)
– Short: sell coins (use for margin)
– Margin: The kind of “Trade coin” using a lever. Normally, the lever is 2.5 time, which means the Trade will lend you 1.5 times of your money. For example, you have 1 BTC, when you trade in Margin, you have 2.5 BTC to trade.
The Poloniex exchange
Some experiences when Trade coin
In fact, I am far from a professional Trader, so the following are just my viewpoints and experiences that I have gained:
– If your budget is low, you should choose low valued coins to trade. If you trade Bitcoin, the profit will very tiny. When you have more than 1 BTC, you are ready to trade BTC.
– For the high valued Coins like ETH, DASH, XMR, their rate will be along with BTC.
– Low valued coins will be negatively affected by BTC. For example, if BTC is decreasing, low valued coins will increase. And if BTC is increasing, low valued coins will decrease.
– When there is bad news concerning to Bitcoin, investors often change their investment to Ethereum, DASH coin, and Monero Coin, which means these coins’ value will rise. This is a psychology trick.
– Newcomers should try to invest in trash coins first (low valued coins). Use a small budget to earn experiences.
– Practice makes it perfect. You will be smarter after every failure, so go ahead.
To become a professional Trader is not a simple thing. It will take you years to achieve this.
Above is all of my article of “What is Trade coin? How to Trade Coin? The introduction of the “Trade Coin” concepts.”. Thank for your reading. Hopefully, you have found useful information in my article and can make the best decisions. Please follow me for more cryptocurrency articles.