Tag: 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 Earn Passive Income Through Crypto Investments ?

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Earn Passive Income with crypto

Earn passive income through crypto trading is a recent trend visible among traders. This is mainly due to the simplicity of these techniques and the low requirement of an initial investment. If you, too, are looking forward to increasing your passive income using crypto coins, keep reading to know how you can do so. 10 Tips to Earn passive income through crypto investments Below are a few tips that can be extremely helpful if you want to scale up your income passively through crypto investments: 1. Varying types of lending In crypto trading platforms, coins are often used as collateral while borrowing money. The interest rate is usually high, so lenders can make sufficient money by lending coins. However, this involves high risk as it becomes a problem if the borrower fails to repay the amount. This technique is hard and requires a lot of funding. Being a long-term commitment, crypto traders must study the risks carefully before opting for this passive income technique. Clickable Box Sol Swap SLP ICO is live BUY This 1000x Coin Buy SLP Now / There are several types of lending techniques available in the crypto world. These are: Centralised: In this exchange platform, a third party is usually involved in monitoring the trade. Hence, there is comparatively less lending risk as you can easily approach the third party if anything goes wrong. Decentralised: No third party is involved; hence, a lender can directly borrow money from the blockchain. A smart contract automates the interest rates. Peer-to-peer: This lending takes place directly between lenders and borrowers. Hence, lenders decide the interest rates and the amount they want to lend to a borrower. Margin: Here, traders use the borrowed money in trading and repay the loan using the money they earn from that trade. 2. Using various dividend tokens Dividend tokens are one of the cryptocurrencies in the limelight recently. The main reason for its popularity is that several companies share these tokens back. Additionally, they offer a specific amount to the person purchasing these coins quarterly. This can be a lucrative source of passive income worth exploring. 3. Installing a lightning node A lightning node facilitates cheap and instant transactions of top cryptocurrencies such as Bitcoin. Individuals running these nodes to facilitate micropayments using these coins receive a commission whenever a transaction occurs through their nodes. You can use this technique to generate passive income even if these commissions are small. 4. Using proof-of-stake mechanism This type of consensus mechanism in a blockchain chooses traders with the highest number of coins as the vendor for that coin. This vendor has the power to authorise a transaction in crypto and, in return, can receive a commission. Thus it is a low-investment passive income technique you can benefit from. 5. Opening an interest-bearing digital asset account In crypto trading, traders can leverage money using their stablecoins. Like savings accounts, crypto traders can deposit their coins and earn interest. However, you must know there is an initial ‘lock-up’ period before you cannot access those coins. Again, this technique does not require substantial funds and only involves minimal risk. Join our Cryptoors Army Make 100x 6. Investing in the liquidity pool Maintaining liquidity is essential in crypto trading to avoid sudden changes in the price of a coin. Traders generally lock their crypto coins in a smart contract to earn a commission from other traders investing in that coin. This process is referred to as ‘yield-farming’. Although the process is complicated, it has gained quite popularity in recent years. Individuals looking forward to using this technique must research thoroughly to avoid risks and gain maximum benefit. 7. Using the buy-and-hold technique Earn Passive Income In this method, you can buy a coin of your choice when the price drops and sell it at a high profit. However, this is risky since if the price does not rise as expected and you encounter a fakeout, you might also suffer from heavy losses. The buy-and-hold technique is a long-term commitment and requires high funding. Hence you must study the indicator charts carefully before investing. 8. Using master nodes Earn Passive Income There are several nodes in a blockchain for a few specific coins that verify new transactions for that particular coin. These are referred to as master nodes. These nodes also play a key role in monitoring a particular blockchain. Individuals verifying these nodes can receive a great amount of money that can serve as an authentic source to earn passive income. However, you must be the largest holder of the currency for that coin to leverage money. 9. Benefitting from the affiliate market It is a popular passive income method among crypto traders as it is easy Earn Passive Income, risk-free and does not require any investment. You can easily generate a unique link and post it on social media, your blog or any website. When a trader uses your link to purchase a coin, you will receive a commission. A marked advantage of this method is that you can earn money lifelong without added effort. 10. Opting for cloud-mining Setting up an online cloud-mining platform is easy and time-saving Earn Passive Income. Miners can easily rent cloud computing power at cheap rates. This is advantageous as they can use this platform to mine more than ten cryptos without paying maintenance fees. For a larger group of people, cloud mining is beneficial and more profitable since it is easily accessible and affordable. Cloud mining saves the burden of directly installing any related hardware and, at the same time, allows users to mine cryptos remotely. Drawbacks of passive income through crypto investments If you want to earn passive income through cryptocurrencies, you must remember that to earn passive income this techniques have several drawbacks. These are: Difficult to use: A few abovementioned techniques can seem complicated to some traders. Hence, there are chances to make mistakes while using them as a source of passive income. Involves risks: Several techniques listed

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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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