Taking A Look At Cryptocurrency And Crypto Trading.

By Bitwolf on Altcoin Academy

Defining Cryptocurrency Trading

Crypto trading is a process or way of exchanging cryptocurrencies. Same as in forex, buying, and selling of cryptocurrency for another, like fiat currency to bitcoins or any altcoin. Many people consider crypto trading as considered as an alternative way to acquire crypto assets without needing to mine them. The rest view cryptocurrency trading as an act of gambling on cryptocurrency price movements or buying and selling the underlying coins through a crypto exchange.

Photo by André François McKenzie on Unsplash

Check Under The Hood Of The Crypto Market?

Cryptocurrency markets use decentralized control as opposed to centralized digital currency and systems. Cryptocurrency works through spread ledger technology, a blockchain, that serves as a public financial transaction database. You can buy and sell cryptocurrencies via crypto exchanges and deposited in ‘crypto wallets.’

Compared to regular currencies, cryptocurrencies exist only as a digital record of ownership, stored on a blockchain. When a user wants to transfer cryptocurrency units to another user, they send it to that user’s wallet. The transaction isn’t final until it has been verified and added to the blockchain through a process called mining. New tokens are made through this process.

How Does The Market Move?

Cryptocurrency markets movement is based on supply and demand. It might be decentralized, but free from government and economic concerns and control. There are a lot of factors which controls and impacts the cryptocurrency market. Below are some examples:

Circulating Supply

Best estimate number of tokens/coins that are circulating in the market, including those in the hands of the public.

Cryptocurrency Integration

A method which helps make the transaction secure and enables to create extra and new cryptocurrencies. This includes adding or incorporating different applications to improve efficiency and enhancement.

Market Cap

Defined as the circulating supply of tokens multiplied by the current price. The value of all coins that exist and how users see this to be progressing.

Press

It is considered as a significant factor in price changes. This is the way that cryptocurrency is represented in media, news, and social media and how much coverage is focused on it. And this includes essential events that are affecting the entire crypto market.

How Does CFD Trading On Cryptocurrencies Work?

The contract for difference (CFD) is a known type of derivative trading. It is a financial arrangement in which trades take place without ownership of the asset changing hands. The buyer and seller engage in a trade based only on the price actions of the share, not on the stock.

CFD trading allows you to gamble on the rising or falling cryptocurrency prices of fast-moving without taking ownership of the underlying coins. You can go “long” if you think a cryptocurrency will increase in value, or short if you think it will drop. Profit or loss are determined according to the entire size of your position so that leverage will increase both profits and losses. Both are leveraged products, meaning you only need to put up a small deposit called margin to gain access to the crypto market.

How Does Algotrading In Cryptocurrency Trading Work?

Bitwolf uses the full potential of algotrading in cryptocurrency trading, the trades in several crypto-to-fiat and crypto-to-crypto pairings. These pairs with low-risk profiles were selected according to factors such as substantial potential future gains, historical data, project behind the coin or token, stability, team managers, the blockchain framework, and more. This method reduces risk exposure even though the exposure is based on a short timeframe. They also implement and execute strategies in live when all the conditions are met, and substantial profit is confirmed to guarantee the highest returns for our investors with minimal risk.

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