Principles for trading cryptocurrencies
is widely spread type of trading on most well-known exchanges nowadays. Without any doubts the crypto exchange is not an exception. Buying cheap and then selling it for a higher price is the basic principle of classic trading.
From now onwards it should be said that for a trader who trades foreign exchange or securities market the move to the sphere of crypto trading going to be enough clear and simple to understand. Besides it, we need to mention that the crypto trading becoming a very popular among beginners. This is due to ease access and loads of trading platforms along with name of tokens (cryptocurrencies).
Let's review the crucial tools for traders for a quick introduction of the base principles of crypto exchanges.- Graphs
- An order to buy or sell
- History of executed orders, trading volume (market data)
Let's look at these components one by one. Our first financial tool is a graph or chart.
Most of the best trading software programs give the building graphs a high priority. So, for example, all software from S# have function to build graphs to capture the whole information of a current trade. Moreover, our free trading terminal S#.Terminal make it possible to trade right from the graph. So what do we mean by repeatedly saying the word graph?The chart(graph) - is a history of quotations of a crypto pair, the ratio of the rate of one crypto pair to another including the ratio of fiat money (dollar, euro, and others).
The most popular chart is Japanese candlesticks
, they provide maximum needed information and provide the ratio spread (the difference between the best sell (ask) and the bid (buy) that are relevant now on, the smaller the spread, the greater the liquidity of the given security)
A Japanese candlestick
is a type of price chart that's main because of its very informative and the view of price movement for the chosen period of time. It makes it simple to do technical analyse of trading strategies, adjust, and correct the trading robots were built by it. More detailed explanations about candles we will tell in new article.