Location of Trade: Key terms for new investors in CRIPTO currency
As the world of cryptocurrency continues to develop, new investors enter the game. However, with a wide range of options available and a quick pace of innovation, it can be irresistible to move on the landscape complex. Spot trading is a critical concept that is crucial to understanding new investors before entering the market.
What is a video store?
Spot trading is a type of financial transaction in which an investor buys or sells a crypto currency at its current market price at a particular exchange or platform. The goal is to benefit from the market fluctuation, whether it is an increase or a fall.
In the video store, basically buys and sells crypto currencies such as Bitcoin (BTC), Ethereum (ETH) or others at its current market price. You can use your own means of buying or selling these currencies, but prepare for potential losses if the market goes against you.
Key terms to understand
In order to succeed in the video store, new investors must understand several key concepts:
- Market Order : The market order is an electronic instruction to perform surgery at the current market price. You can make market orders via the Internet or through your hallway.
- Price and Question offer : Offer prices are minimal prices you are willing to buy a crypto currency, while the prices for the maximum price for which you are willing to sell.
- Freedom : The connection refers to the possibility of control of higher position with smaller quantities of capital. In the video store, Leverage allows you to increase profit or reduce losses.
- Risk-Compensation ratio : This relationship determines how much risk is willing to download for any possible reward. A greater relationship with risk renewal means greater exposure, but also greater potential gain.
Types of trade Spot
There are several types of trade spot, which include:
- Purchase of Sales : These operations include the purchase and sale of a crypto currency at the same price.
- Dimensioning of the position : This implies awarding a certain amount of capital to one store or active.
- Ljuka trade : This type of trade involves the maintenance positions in the period shorter than the standard investment.
Popular Exchange
Some popular trade traders on site include:
- Binance : One of the greatest and good exchange of reputations, which offers influence, margin trade and advanced tools.
- COINBASE : a leading exchange in the United States, known for a simple interface from use and low rates.
- Bitmex : A popular exchange that offers advanced functions of influence and trade.
Tips for new investors
To begin with with a crypto currency trade:
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- Select a good reputation platform : Explore and select a well -established exchange or platform that adapts to your needs.
- Start Small : Start with limited quantities of capital and gradually increase as you gain experience and trust.
- Use appropriate risk management techniques
: Establish clear relationships and risk rewards and restrict exposure to reduce potential losses.
Conclusion
Spot trading is an exciting and potentially lucrative way of investing in cryptocurrency, but requires a careful understanding of the market and its mechanics. Dominating key concepts such as market order, supply and ask for prices, influence and relationship with risk rewards, new investors can move with confidence with the complexity of the trade video. Remember to educate yourself, choose a good platform for reputation, start a small and use appropriate risk management techniques to guarantee a successful CRIPTO currency store.
Liability release : Investing cryptocurrencies involves risks, including the market volatility, regulatory changes and security problems.