Category: Crypto Trading

What is crypto futures trading step by step guide

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crypto futures trading: Futures are a derivatives tool traders can find on crypto exchanges. Here we explain what they are and how futures work in the crypto market. Learn Crypto future trading step by step guide A beginner guide for Crypto future trading The Future Of Cryptocurrency And Trends 2024 How does crypto futures trading works in crypto market here is the few keys  Key Takeaways: A crypto futures trading contract is an agreement to buy or sell an asset at a specific time in the future. crypto Futures trading mainly serves three purposes: hedging, speculation, and arbitrage. Futures are available on major exchanges for various asset classes, including stocks, indices, interest rates, commodities, and cryptocurrencies. Every crypto futures trading contract has a minimum price fluctuation, also commonly known as a tick. The profit and loss of one contract is obtained by multiplying the dollar value of a one-tick move by the number of ticks the futures contract has moved since purchasing the contract. The multiplying effect from the contract size and tick movement can have a large impact on the profit and loss of a futures contract. Every futures contract expires on a certain date, and a crypto futures trader needs to manage contract expiration. What Are Crypto Futures? A crypto futures contract is an agreement to buy or sell an asset at a specific time in the future. It is mainly designed for market participants to mitigate the risk of future price changes in an asset. The original application of crypto futures contracts was seen in the transactions between farmers and merchants. Suppose a farmer knows in June that he will harvest a known amount of corn in the coming September. The farmer and the merchant come to an agreement on a future contract: the merchant pays the farmer an agreed-upon price, and the farmer must deliver a predetermined amount of corn to the merchant in September. By doing this, both the farmer and the merchant can reduce their price risk through implementing the futures-type contract. In addition to hedging price risk, futures also allow market participants and traders to profit from speculation and arbitrage. Before diving deep into futures’ functions and trading strategies, however, let’s go over the nuts and bolts of a futures contract first. Clickable Box Sol Swap SLP ICO is live BUY This 1000x Coin Buy SLP Now / Specifications of a Crypto Futures trading Contract A futures contract must clearly specify the exact nature of the agreement, and it generally covers the following key terms: Underlying Asset and Contract Size Futures are available on major exchanges for various asset classes, including stocks, indices, interest rates, commodities, and cryptocurrencies. The contract size specifies the amount of the asset to be delivered. For example, in a crude oil futures contract, the contract size might be barrels of crude oil. Settlement Procedure A futures contract can be settled by physical delivery or by transferring cash positions. Physical delivery requires the actual underlying asset to be delivered upon the specified delivery date, while cash settlement involves transferring of the associated cash position. A contract also specifies where and when the buyer and the seller must settle the contract. Price and Position Limits Exchanges usually impose limits on futures’ daily price movement: Limit up and limit down are the maximum amounts a contract may increase or decrease in any single trading day. When markets hit the price limits, some may temporarily halt trading for a certain time or stop trading for the day altogether. Position limits are the maximum number of contracts that a market participant may hold. Join our Cryptoors Army Make 100x Notional Value The notional value of a contract refers to the product of the contract unit and the futures price. Contract Notional Value = Contract Unit × Contract Price Consider an S&P 500 futures contract trading at $3,000. The contract unit of this contract is $50 times 1 index point, where $50 is also known as a multiplier. The notional value of the contract, therefore, is: $3,000 × $50 = $150,000. The notional value can help gauge the hedge ratios versus other futures contracts or another risk position in a related underlying market. We further illustrate the use of hedge ratios in trading strategies: Hedge Ratio = Value at Risk/Contract Notional Value The hedge ratio is a risk management tool used to calculate the amount of exposure needed to be hedged in a portfolio. It is calculated as the value at risk (VaR) divided by the contract notional value. Value at risk (VaR) is, with a certain level of confidence, a statistical measure of the maximum potential loss of funds or portfolio over a given time period. For example, a VaR of $100,000 with a confidence level of 95% means there is a 95% probability that the maximum potential loss on the assets or portfolio will not exceed $100,000 over the given time period. The contract notional value represents the total value of the financial contract used to hedge the exposure. By dividing the VaR by the contract notional value, the hedge ratio calculates the amount of exposure needed to be hedged in order to limit the potential loss to the VaR level. For example, if the VaR is $100,000 and the contract notional value is $1 million, the hedge ratio would be 0.1, indicating that 10% of the exposure needs to be hedged. The hedge ratio can be a useful tool for managing risk in a portfolio, as it can help to identify the appropriate level of hedging required to limit potential losses. Join our Cryptoors Army Make 100x Minimum Price Fluctuation Every crypto futures trading contract has a minimum price fluctuation, also commonly known as a tick. It refers to the minimum increment of price movement possible in trading a futures contract. Take, for example, a bitcoin futures trading contract, where its minimum tick size equals $5. The dollar value of a one-tick move is calculated by multiplying the tick size

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How To Make Money With Ethereum

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Ether (ETH), the native cryptocurrency of the Ethereum blockchain, is not only one of the most popular cryptocurrencies available today, but it’s also become increasingly easy to make money with it. So, if you’re just getting started in the world of crypto investing, here are common tips and strategies for making money with ETH. ETH Lending What is ETH lending? How does lending help you make money with ETH? Well, instead of just storing it away in a crypto wallet (which doesn’t earn you any yields), you can lend it out instead to borrowers who are in need of cryptocurrency financing and generate yields from the interest. This method works similar to traditional forms of lending. The main difference is that ETH lending is done through decentralized platforms – eliminating the need for a middleman institution like a bank or credit union. How to start lending ETH? Clickable Box Sol Swap SLP ICO is live BUY This 1000x Coin Buy SLP Now / Getting started with ETH lending is relatively straightforward and doesn’t require much technical knowledge to get going. That said, it’s important to understand how the process works before getting involved. Here are just some basics on how you can begin: Research different platforms – there are several different decentralized platforms offering ETH loans. Do some research into each one so that you can compare terms and conditions before deciding which one is right for you. Choose your terms & conditions – each platform will offer its own unique set of terms & conditions when it comes to setting up an ETH loan agreement. This may include interest rates, loan amounts & repayment schedules. So, make sure that you know exactly what these are before agreeing to anything. Secure your collateral – before starting any loans, make sure that you have sufficient ETH reserved as collateral just in case something goes wrong during the process (i.e., if someone defaults on their loan). This will help protect your investments if something unexpected happens along the way and ensure that all parties involved are taken care of properly at all times. Monitor your contracts – even though most lending platforms come with built-in safeguards against losses (such as liquidation fees), it’s still important to keep an eye on your contracts throughout the duration of each term in order to minimize any potential losses due to late payments or defaults by other parties involved. Is lending ETH suited for you? ETH lending is a straightforward way to earn passive income with your ETH holdings. The process is simple: lend your ETH and earn interest payments later on – which is why it is, generally, perceived as suitable for beginners. However, it’s essential to review the terms and conditions of your preferred lending platform carefully. By doing so, you can be aware of any potential risks involved and protect yourself and your assets. What is ETH trading? Trading is, arguably, the most popular and lucrative way to make money with ETH. It involves buying and selling ETH, and taking advantage of its price fluctuations in the market to make a profit. How to start trading ETH? To make money with ETH by means of trading, you first need a platform from which to buy and sell this cryptocurrency. Some of today’s most popular platforms not only provide liquidity but also offer advanced features such as margin trading. That said, you must ensure you use a platform that provides optimum security and transparency. After setting up an account with your preferred platform, you’ll then need funds in order to buy and sell your preferred amount of ETH. Some cryptocurrency exchanges allow direct deposits via bank transfer while others require you to first purchase other cryptocurrencies before exchanging them for ETH on their platform. Once your funds are ready, you may choose to start engaging in short-term trades. This approach is more suited for day traders who speculate and take advantage of price movements within a single trading day or scalpers who wish to make frequent small profits from small price movements during the day. Is trading ETH suited for you? If you choose to make money with ETH through trading, it is important to be aware that this method can be risky and can result in significant losses. This is due to the fact that the crypto market is extremely volatile and can be very unpredictable at times.. Therefore, trading should only be considered by investors who are willing to assume a high level of financial risk. What is ETH trading? Trading is, arguably, the most popular and lucrative way to make money with ETH. It involves buying and selling ETH, and taking advantage of its price fluctuations in the market to make a profit. How to start trading ETH? To make money with ETH by means of trading, you first need a platform from which to buy and sell this cryptocurrency. Some of today’s most popular platforms not only provide liquidity but also offer advanced features such as margin trading. That said, you must ensure you use a platform that provides optimum security and transparency. After setting up an account with your preferred platform, you’ll then need funds in order to buy and sell your preferred amount of ETH. Some cryptocurrency exchanges allow direct deposits via bank transfer while others require you to first purchase other cryptocurrencies before exchanging them for ETH on their platform. Once your funds are ready, you may choose to start engaging in short-term trades. This approach is more suited for day traders who speculate and take advantage of price movements within a single trading day or scalpers who wish to make frequent small profits from small price movements during the day. Is trading ETH suited for you? If you choose to make money with ETH through trading, it is important to be aware that this method can be risky and can result in significant losses. This is due to the fact that the crypto market is

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How to trade Long And Short – Earn $1000 per day with crypto

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In the crypto market, making profitable investments can feel like navigating through a fog. Many investment strategies rush head-on into volatility, bringing you significant risk. But one popular approach to investing safely is the long/short trading strategy. By taking advantage of bullish and bearish market conditions, this strategy is immune to market direction. But what is this strategy and why is it gaining popularity? What is Long/Short in Trading? In trading, long and short refer to a trader’s position in an asset or security. Long means the trader has bought an asset, expecting a rise in its price. If the asset’s price does increase, the trader can sell it at a profit. On the other hand, a “short” position means that a trader has sold an asset, expecting the price to fall. If its price does decrease, the trader can buy back at a lower price, making a profit. This is a popular investment strategy used by hedge funds. In a long-short equity hedge fund, the fund manager simultaneously buys long positions in some stocks and short positions in others. The goal of a long short fund is to generate profits regardless of whether the overall market is trending up or down. Read more:  Cryptocurrency trading Clickable Box Sol Swap SLP ICO is live BUY This 1000x Coin Buy SLP Now / What is Long and Short in Crypto Trading? In crypto trading strategies, long and short positions are used in the same context as traditional markets. You long an asset when you expect the price to rise, and short when the price may go down. But there are some crucial differences in how this process is implemented. Firstly, the crypto market is much more volatile than the stock markets. This means your potential gains and losses from longs and shorts are much higher when trading crypto. Second, there are no brokers in the crypto ecosystem. This requires exchanges to provide other methods for shorting. Long VS Short Trading As mentioned above, choosing between long and short trades depends on the asset you are considering. If you believe your token of choice is going to go up, you can buy it and hold it. Otherwise, if its position in the market seems too high, you can short it. Choosing a long-short strategy is based on reducing risk and the impact of overall market movements. If you isolate your portfolio against market trends, your profits are based purely on relative performance. Join our Cryptoors Army Make 100x How To Long and Short Crypto? Longing crypto requires you to buy tokens from any exchange. On a centralized exchange, this means creating an account with the provider and adding funds. But decentralized exchanges need you to create and connect a crypto wallet with the platform. There are two ways to borrow tokens for short positions. On a centralized exchange, this provision is provided directly by the platform. However, decentralized exchanges do not have any service providers. Instead, tokens can be borrowed using liquidity pools or other DeFi applications. What are Some Crypto Long Short Trading Strategies? Here are some popular crypto long-short trading strategies. Market-neutral strategy: In this strategy, you take both long and short positions in similar crypto tokens or indexes. The idea is to eliminate the impact of the overall market on your portfolio and rely on the relative performance of assets. Pair trading strategy: In this strategy, you select two correlated tokens and take a long position in one and a short position in the other. The aim is to profit from the price difference between the two. Event-driven strategy: This strategy involves taking long and short positions based on specific events that are likely to impact the market. This includes regulatory changes, hard forks, or other major news. Trend-following strategy: In this strategy, you take long and short positions based on the direction of the trend. For example, if the market is in an uptrend, you take long positions, and if it’s in a downtrend, you take short positions. Long and Short Crypto Example Here’s an example of how a long/short strategy might work: Let’s say you are a crypto fund manager. You believe that ETH will rise in the coming months, while the BTC price will fall. You will choose to purchase long positions in ETH and short positions in BTC. If your predictions are correct and the ETH price rises and the BTC stock price falls, the fund will generate profits in both positions. The long/short strategy allows you to take advantage of both bullish and bearish market conditions. Additionally, this strategy allows you to manage risk by hedging your positions. For example, if the overall market experiences a downturn, your short positions may offset losses in the long positions. Read more: how to make 100x profit with shit coins Conclusion While there are many different hedge fund strategies you can use, the crypto long-short strategy is one of the simplest and most effective. It involves analysing crypto projects and determining whether to take long or short positions in them. If you want to eliminate the impact of the overall market, this strategy can be good for you. However, you must ensure that you do extensive research before trading/investing in the crypto markets. Join our Cryptoors Army Make 100x

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Diving into Cryptocurrency Trading A In-Depth Journey for Beginners

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What is crypto trading? The act of speculating on cryptocurrency price movements via a contract for difference (CFD) trading account, or buying and selling the underlying coins via an exchange is known as cryptocurrency or crypto trading. CFD trading is a type of derivative that allows you to bet on Bitcoin price changes without possessing the underlying currencies. For example, you can go long (buy) if you believe the value of a cryptocurrency will rise, or short (sell) if you believe the value will fall. Both are leveraged instruments, which means that you only need a little deposit, known as margin trading crypto, to have total exposure to the underlying market. However, because your profit or loss is still determined based on the total size of your investment, leveraging trading crypto magnifies both earnings and losses. Furthermore, cryptocurrency options are used by investors to reduce risk or increase market exposure. Crypto options trading refers to the “derivative” financial instrument that derives its value from the price of another asset — in this case, the underlying cryptocurrency. Before even thinking about venturing into crypto trading, it is important that one has a comprehensive understanding of the assets and technologies involved. Bitcoin is the soil from which thousands of other cryptocurrencies have grown. Clickable Box Sol Swap SLP ICO is live BUY This 1000x Coin Buy SLP Now / As with stocks and other financial markets, trading cryptocurrency can be complex, involving a variety of components and requiring knowledge. Bitcoin launched in 2009 as the first crypto asset and remains the largest cryptocurrency in terms of market capitalization and prevalence. Over the years, however, an entire industry of other digital assets has come into existence with the assets being tradable for profit. All other cryptocurrencies that are not BTC are known as altcoins, the largest of which is Ethereum This guide will explain crypto trading strategies and familiarize you with crypto trading platforms and applications, the components of a trade, the styles of trading and the role of technical and fundamental analysis in creating a comprehensive trading strategy. How to trade cryptocurrency for beginners Many different approaches exist in terms of how to trade cryptocurrencies. In order to start trading cryptocurrencies, one first needs adequate knowledge of the subject. It is also critical to know the associated risks and the laws that may apply based on one’s jurisdiction and decisions should be made accordingly. Sign up for a cryptocurrency exchange You’ll need to open an account with a crypto exchange unless you already own cryptocurrency. The best crypto brokerages on the market include Coinbase, eToro and Gemini. All three of these services have a straightforward user interface and a wide range of altcoins to pick from. To open an account with a crypto brokerage, you’ll need to supply personal identifying information just like you would with a stock brokerage. When creating an account, you’ll need to submit your address, date of birth, Social Security number (in the United States) and email address, among other things known as Know Your Customer (KYC) requirements. Fund your account You’ll need to connect your bank account once you’ve signed up with a crypto brokerage. Most cryptocurrency exchanges accept bank deposits via debit cards and wire transfers. Wire transfers are usually the most cost-effective way to fill your account and they’re accessible on Coinbase and Gemini. Pick a crypto to invest in The majority of cryptocurrency traders put their money into Bitcoin and Ether. However, trading utilizing technical indicators is possible because these cryptocurrencies move more predictably than smaller altcoins. Many cryptocurrency investors put a portion of their money into altcoins. Although riskier than large-market cap cryptos, small mid-market cap cryptos have more significant upside potential. Start trading You might try automatic crypto trading with software like Coinrule if you’re looking for a crypto trading strategy. Crypto trading bots implement a process designed to provide you with the most significant returns possible based on your investment objectives. You can make money rapidly, keep your coins, or diversify your portfolio with crypto automated trading, which can provide you with a conservative, neutral, or aggressive way. You might even explore trading cryptocurrency actively on some sites while automating trading on others. Store your cryptocurrency If you’re actively trading BTC, you’ll need to keep your funds on the exchange in order to access them. For example, you should purchase a Bitcoin wallet if you’re buying cryptocurrency to hold for the medium to long term. Software wallets and hardware wallets are two types of cryptocurrency wallets. Both are safe, but hardware wallets provide the most protection because they keep your cryptocurrency on a physical device that is not connected to the internet. Basics of cryptocurrency trading Bitcoin’s value is determined second-by-second and day-by-day by a market that never sleeps. As an autonomous digital asset whose value is determined by an open market, Bitcoin presents unique challenges around volatility that most currencies do not face. Thus, it is important for newcomers to have some literacy of how crypto-asset markets work so that they can safely navigate the markets, even intermittently, and get the most value out of their participation in the crypto trading economy. Bitcoin trading can range in scale and complexity from a simple transaction, such as cashing out to a fiat currency like the U.S. dollar, to using a variety of trading pairs to profitably ride the market in order to grow one’s investment portfolio. Of course, as a crypto trade increases in size and complexity, so does a trader’s risk exposure. First, let’s go over some basic concepts. Structure of a crypto trade A cryptocurrency trade consists of a buyer and a seller. Since there are two opposing sides to a trade — a purchase and a sale — someone is bound to gain more than the other. Hence, trading is inherently a zero-sum game: There is a winner and there is a loser. Having a basic understanding of how the cryptocurrency markets operate can help minimize potential

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A Comprehensive Guide To Understand Crypto Trading Charts

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How To Read Crypto Trading Charts As the global acceptance of cryptocurrencies expands, so does the curiosity and interest in crypto investments. Similar to how technical charts aid traditional traders in choosing equities and commodities, crypto charts are invaluable tools for making informed investment decisions in the realm of digital currencies. Understanding Crypto Charts: Unveiling Patterns and Opportunities Crypto charts, graphical representations of historical price, volumes, and time intervals, become the canvas upon which patterns of the past price movements of digital currencies are painted. These patterns serve as guides, enabling investors to identify potential investment opportunities. To delve into the art of reading a crypto chart, let’s explore the intricacies of the Japanese Candlestick chart. A Japanese Candlestick, a favored chart among crypto traders, employs color to convey significant information. A red candle signifies a closing price lower than the starting price within a specific time frame, indicating a decline. Conversely, a green candle represents a closing price higher than the starting price, signaling an increase. These candlestick charts, diverse in shape, color, and size, form various patterns, influencing traders in making strategic decisions. Clickable Box Sol Swap SLP ICO is live BUY This 1000x Coin Buy SLP Now / Identifying Bullish and Bearish Patterns: The Trader’s Palette Patterns on crypto charts can be categorized into two main types: Bullish Reversal Patterns and Bearish Reversal Patterns. For example, the Hammer Candle Pattern serves as a bullish reversal indicator, suggesting that a stock is approaching the bottom in a downtrend. The short body of the candle symbolizes the head of the hammer, while the longer wick implies sellers driving prices low, followed by strong buying pressure to conclude the session on a positive note. Validating the upward trend requires vigilant observation for a few days, coupled with an increase in trading volume. Conversely, the Shooting Star Candle Pattern is a bearish reversal signal, typically occurring at the peak of a rally. This pattern, characterized by a candle with a long upper wick and a small body, points to drive-by buyers encountering resistance. Exploring Technical Analysis Patterns: A Visual Symphony 1. Head and Shoulders Patterns: These reversal patterns can manifest at the peak or bottom of an ongoing trend, reflecting a battle between buyers and sellers that culminates in a pushback or pullback. 2. Wedge Patterns: Evident in the provided image, wedges emerge as trends settle, ultimately resulting in a breakout. Markets often sway sideways, creating a wedge until they decisively move in a firm direction.   Deciphering Support and Resistance: Key Elements in Crypto Chart Reading Understanding support and resistance is pivotal in navigating the intricacies of a crypto chart. Support levels denote a price level that the asset does not fall below for a fixed period. In contrast, resistance levels signify the price at which the asset is not anticipated to rise further. This level symbolizes the equilibrium point where sellers outnumber buyers in the market for a specific digital asset. Seasoned experts often recommend support and resistance levels to guide traders in making informed decisions when positioning themselves in the crypto market.

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