How To Trade Cryptocurrency

Cryptocurrency trading is a relatively young but already popular area. It attracts many people who want to earn a good and stable income. Cryptocurrency trading in India is actively gaining momentum. We can observe that new users register on the platforms daily, explore the available tools, learn the basics of trading and begin making their first transactions.

A crypto trader is a trader whose primary goal is to profit from short-term price changes in the cryptocurrency markets. A crypto trader can only work with one coin, for example, Bitcoin, and trade one pair — BTCUSD (or BTCEUR). It can also focus on a few coins and trade pairs, such as Bitcoin and Ethereum, paired with the US dollar or Euro.

You may have heard the term «altcoin», which refers to alternative cryptocurrencies. This includes all cryptocurrencies released after Bitcoin (for example, Ripple, Stellar Lumens, Monero, Polkadot, Solana, Uniswap, etc.) Some crypto traders may work exclusively with altcoins, ignoring the leading cryptocurrencies. None of the above options are «right» or «wrong». It all depends on your strategy, risk tolerance and financial goals.

What Is Cryptocurrency Trading?

Crypto trading involves buying and selling digital currencies on crypto exchanges to profit. It is based on trading principles in financial markets but focuses on digital assets. Traders and investors use various strategies and tools to predict cryptocurrency price movements and make buy or sell decisions, which is utterly different from mining.

Unlike traditional financial markets, cryptocurrencies operate based on blockchain technology, which provides decentralization and transparency. This means that crypto trading is carried out without the participation of intermediaries, such as banks or government organizations.

To buy and sell cryptocurrencies, traders can use different types of orders:

• market;
• limit;
• deferred.

Like trading the stock market, you can use technical and fundamental analysis to predict price movements and make decisions based on the data.

Initially, you need to set up interaction with the trading platform. To do this, pay attention to the following order:

• Create an account. Register an account if the chosen crypto exchange meets your requirements (regarding reputation, security, commission level, availability of trading tools, etc.). Next, go through identity verification to gain access to all the necessary tools.
• Link your card or cryptocurrency wallet to top up your balance on the exchange. This is easy to do since global and Ukrainian cryptocurrency exchanges cooperate with popular banks, which allows you to top up your trading account in just a few seconds.
• Learn the basics of cryptocurrencies and the specifics of digital coins to understand how the market works. Check out current news and trends.

Usually, registering and linking a card is quick and takes at most 5 minutes. Trading platforms provide access to various analytical data, which allows you to form your own opinion about current trends and the situation in the crypto market.

Best Cryptocurrency Trading Platform

Are you looking for the best platform to trade cryptocurrency in India? In this case, pay attention to the Binany website. The trading platform began operating in 2019 and offers favourable conditions to its Indian clients. It is perfect for beginners and experienced traders.

Binany.com offers Indian clients the opportunity to trade various commodities:

• cryptocurrencies (all popular types available);
• shares of various global companies;
• foreign currencies;
• binary options.

Select suitable currency pairs and create trades. Traders can receive up to 90% profit from each successful operation here.

You can quickly and easily log in to Binany. The site operates legally in India, so the official website is available 24/7 without interruptions or blocking. Registration on the site is simple and fast. Creating an account, topping up your balance, and starting trading will take up to five minutes.

Beginners and experienced brokers use this platform’s services with great pleasure. They receive everything they need to create transactions and earn up to 90% profit successfully. The website’s and mobile application’s user-friendly interface allows new clients to get comfortable and quickly understand the range of tools provided. You can also contact technical support specialists anytime and receive qualified assistance and answers to your questions.

Types Of Cryptocurrency Trading

Many people want to understand the world of trading. Therefore, the following question often arises: how do you learn cryptocurrency trading? Anyone can start trading cryptocurrency, and studying for a long time is unnecessary. You can master the basics of this area and begin making transactions, gradually gaining additional experience and knowledge.

In the global world of financial markets, trading is divided into types based on the time during which the position (transaction) is held. Thus, there are six generally accepted types of crypto trading (styles):

• High-frequency trading – trades last a fraction of a second. In addition to a stable cash flow, you get a lot of free time. This is a fairy tale, but remember that fairy tales are surprisingly rare in real life.
• Scalping. The time to hold a position is calculated in seconds and several minutes. People who use this type of trading are called scalpers. Scalpers catch tiny impulses caused by various factors. If you love the thrill of extreme situations, then scalping is for you. The adrenaline rush from fast trading is essential in deciding to make a living from scalping.
• Day trading. This type of trading is also called intraday trading or intraday trading. As the name implies, all transactions occur within one trading session. Positions are held no longer than the duration of the trading session. The day trader goes home with no open trades.
• Swing trading. The position is held for more than one day. Usually — from several days to several months. There are no precise time frames here. Among the advantages of this type of trading are higher profits and low fatigue due to enough time between the beginning and completion of a transaction; you can trade from a PC and smartphone.
• Medium-term trading. This method is for traders who catch long fluctuations. «Mid-term» traders hold their positions for many weeks and months. You do not need high-precision terminals for this type of trading, and commissions do not influence the final result. You have a lot of free time and ample opportunities to choose markets.
• Long-term investing. This type of buy-and-hold trading is most suitable for the stock market. A striking example is Warren Buffett, one of the wealthiest people on the planet. The peculiarity of this type of trading is that a person receives income not only from the growth in the value of cryptocurrency but also from the fact that the company pays dividends.

How To Start Trading Cryptocurrency

People interested in this type of earnings often ask the following question: How do you do crypto trading? Indeed, it is necessary to start investing personal funds only if you clearly understand what actions to perform in the future to get a positive result. To initially minimize the risk of losing your investments, pay attention to the following recommendations:

1. Develop a trading strategy and determine your goals and risk level. This strategy can involve long-term or short-term investing, trading based on news or technical analysis, or other approaches.
2. Monitor your balance to ensure that trades are completed within your available funds.
3. Start trading following your strategy. Remember that the cryptocurrency market is very volatile, so be prepared for unforeseen circumstances and remember to use stop-loss orders to manage risk.

As for how cryptocurrency trading works? Everything is simple here. You need:

1. Choose a reliable trading platform. Most brokers from India prefer the Binany platform because it is reliable, offers many exciting and practical tools, provides users with bonuses and offers a choice of financial transactions.
2. Go through the registration procedure. Creating an account usually takes a little time. A new client must provide a login and password, accept the membership terms, and complete registration.
3. Top up your game balance. Binany offers Indian brokers many popular and reliable payment systems and convenient transaction limits. Just choose the appropriate method and deposit money into your account.
4. Start trading. Select the appropriate currency pair, make your predictions and create trades. Binany offers its clients up to 90% profit on every trade.

Cryptocurrency Trading Strategy

People want an answer to the question: how to trade cryptocurrency and make profit? To get stable earnings in the cryptocurrency market, you must first decide on the strategy you will adhere to during trading. A crypto trading strategy will prevent you from being distracted by unnecessary news, economic data and market events that only interfere with a complete and correct analysis.

The five most popular cryptocurrency trading methods, which will be discussed below:

• Scalping.

This trading strategy allows traders to profit from fluctuations in the value of virtual currency at frequent intervals. It will enable you to make a small profit every day and accumulate an impressive amount over time.

Scalpers often use leverage to gain the ability to open as many trades as possible and tight stop losses to manage risk. During trading, 1-minute, 15-minute and 30-minute time frames are used.

• Day trading.

Intraday trading involves entering and exiting positions within one day. Just as in the previous case, making a profit is associated with fluctuations in the value of digital currency. Day traders differ from scalpers only in more extended time frames.

Day trading strategies are developed using technical analysis. But you must understand that intraday trading, like scalping, is a rather labour-intensive and risky strategy. It is not suitable for beginners and is intended for more experienced traders.

• Swing trading.

Trades using this strategy usually take more than one day but no longer than several weeks or months. Some traders call this strategy medium-term, as it falls between intraday and position trading strategies. The main advantage of swing trading is having more time to think about your decisions. This style of trading is usually recommended for beginning traders.

• Buy and hold.

The strategy allows traders to hold positions for extended periods, such as months or years. Traders using this strategy can ignore short-term changes in the value of cryptocurrencies and should analyze long-term trends.

When using a hold, traders typically focus on the daily, weekly, and monthly time frames. At the same time, fundamental analysis evaluates potential market price trends, considering factors such as market trends and historical patterns.

• Arbitration.

The practice of buying cryptocurrencies in one market and selling them in another to profit from the price difference is known as arbitrage trading. A trader makes money by taking advantage of the low price correlation of crypto assets offered on two or more exchanges.

For example, if the price of Bitcoin on Binance is $43,000 and on Coinbase it is $43,400, you can buy Bitcoin on Binance and transfer the digital currency to Coinbase to sell it at a higher price. The possibilities for cryptocurrency arbitrage are almost limitless since today, there are quite a large number of cryptocurrency exchanges operating.

Crypto Trading Is Legal In India?

Residents of India can trade cryptocurrencies freely. Choosing a suitable, reliable legal platform for this is essential. Many brokers from India prefer the Binany trading platform. The site began in 2019 and has gathered a considerable audience of regular customers. The site is registered abroad, meets all conditions and requirements, and accepts the national currency — the Indian rupee. Therefore, we can confidently say that Binany operates legally in the country and that cryptocurrency trading in India is legal.

Binany guarantees its clients anonymity, protection, and confidentiality. User data and financial savings are not available to third parties. The platform offers new clients a generous welcome bonus, allowing them to extend their trading time and receive significantly higher income.