Advanced Crypto Trading
Trading cryptocurrencies is a complex process, one we wish to reveal for our readers in this advanced crypto trading guide. We propose an advanced process by which you, as a trader, ensure to get correct information. The process consists of a technical analysis & fundamental analysis, money management, trade centers, and tool platforms’ analysis. Make sure you understand our articles for the beginner before you proceed. These articles are,
Technical and Fundamental Analysis
Before you commence trading activities, it is important to analyze the market. There is two types of analysis, technical and fundamental (psychological) investigation processes.
The technical aspect of your market research adheres to price trends through statistical measuring of blockchain data. A trader takes price and volume values from different crypto trading platforms (exchanges and trade centers) and converts them into meaningful information. The information that you are trying to reach is trends, drops, and peaks. You can check out one of the chart tools available in picture below (Trading View).
Do properly do your technical research, you need tools available to you. Charts and softwares offer what you need, as you set your charts, indicators and other measurements of the market data.
On the side of fundamental analysis, this is where you get quality over quantity (in the case of technical analysis). You should mix up these two methods, by confirming your technical findings with what community says. Seek out forums and read fresh comments about what is going on in the market. News feeds also represent a great source of information about development, issues, and opportunities in the market.
All of these can impact cryptos, pushing its price up/down, depending on what is going on in the market.
Once you have fresh information regarding the market, make sure you have available funds. We recommend having funds in your bank account since most platforms accept bank transfers expressed in Wire or International transfers. You may also use your crypto wallets. Choose one wallet to transfer coins immediately after you find an adequate platform for trade.
Some might say that this is an obvious step to take, though preparation is rarely made. Thus, we do emphasize for you to calculate needed funds ahead of time to react fast should the situation in the market change. Choose one address and one source of funding so you can respond fast to these changes and avoid additional costs.
Platforms and Terms
Depending on your preferred payment method, you can now choose trading platforms. Since you have your own preference, it is easy to filter out exchanges that do not suit your needs. You already know what functions you need as well as what payment method should be available. We have done deep reviews of all the best crypto trading platforms, such as, Bitfinex review, BitMEX review, eToro review and more.
Make sure you read about trading functions’ terms, so you know the limitations set by the company. Leveraging might come under special terms and so can margin trading as well.
Choosing a Strategy
This step is probably the most crucial after the analysis in many terms. Choosing your path on how to deal with trends in the market makes a thin line between profit and loss. We made a guide on how to choose a proper strategy, which is crypto trading strategies.
There are several approaches that you can take, from day trading (swing trading and scalping) to more long-term trading strategy. This is where you should consult your results in the analysis section but also the platform that you wish to work with.
Market trends might show you the best strategy but trading platform might not offer the option to use it. Thus, combine analysis with platform’ terms to be sure you have the correct strategy.
At the same time as you are choosing your strategy, you should know a bit about crypto trading tools as well. This step can also be completed after you made the market analysis as well. These tools include charts, bots, API, and mobile apps, all bent on helping you extract data and analyze it.
Bots and API go even step further, by automatizing your trading operations and doing trade on your behalf. You can check out Haasonline’s API plans should you wish to employ them in your trading process.
If you are a starter, we do advise you to not blindly trust bots and APIs. Rather, use them to speed up deposit/finding process and make a quick market analysis. The decision itself and strategy used should come from you, not a computer program. To know more about these tools, follow this [link] to our guide them.
Once you have everything set and ready for use, you need to choose an instrument of trade. There are several of them available, them being CFDs, margin trading, and leveraging being the most prominent ones. Each has its own set of functions and markets. Make sure you use an instrument that is compatible with your market analysis results, tools, and set trading strategy.
To know more about these instruments and what platforms support them, go to our guide crypto trading instruments.
Execution of the Order
This step is fairly straightforward, as you log into the chosen platform, deposit funds and then release trade order. You do need to make sure market trends have not drastically changed once you are ready to make an order. So review the process at step one of this guide.
You should also follow up the funding process to be sure all your balances have transferred according to your plan.
Consideration of Results
It is important to reflect on the results once you close the trading order. We would recommend you to put all these steps into a word or excel file. Then, you can go back to them and compare planned profit with what you actually got.
If you made a loss, you need to know where it went wrong. Thus, list out your sequence of actions, chosen tools, and strategies alongside with market analysis results. You will find where it went wrong if you benchmark the results with data you have extracted.
In this advanced crypto trading guide, we proposed a step-by-step process for starters to sue when trading cryptos. It is important to conduct market analysis at the very beginning to set proper basis. After that step, traders should choose needed tools, platforms, and strategy in order to make profit form crypto trade.
We advise to always reflect on results, so your next order would be even more profitable than the last one.