Cryptocurrency trading explained and 8 common mistakes you should avoid

 In previouscryptocurrency to buy  articles, cryptocurrency to buy  we talked about cryptocurrency trading and its most popular online platforms, and now it's time to dig a little deeper into the explanation of cryptocurrency trading. First of all, trading is very different from betting, the latter is based on chance and probability while trading

 depends on examining the market and predicting changes in the values ​​of digital currencies, both  short and long term. In this article, we will explore trading in detail and  explain how professionals follow it, both through technical analysis and fundamental analysis. We will look at the types of

 trading and the types of orders by which traders sell and buy, as well as the most important part of the article dealing with the most important mistakes that beginners usually make. Note: This article is one in a series of articles published cryptocurrency to buy  about the winners.

What is cryptocurrency trading?

Cryptocurrency trading is one of today's most popular avenues of online profit, leading to tens of thousands of people around the world joining the Millionaires Club. An important feature of cryptocurrencies, volatility, is exploited in trading because these currencies are decentralized and their value is not tied to any asset of any kind and their prices change very quickly. This price change is the result of a change in supply and demand and global economic and political events,

 and here is the role of the trader  to anticipatecryptocurrency to buy   and guess the next move or change. For example, in the way that we will mention later in this article, the trader will know that the price of a digital currency will increase, so he will buy it and hold it until it increases, then sell it and take the price difference ascryptocurrency to buy  profit. For example, a digital currency worth $1000 and through market movements I learned that its price was going to rise, so I bought 10 currencies and waited for it  to rise to $10 50

 then sold it, so i made $50*10 or $500 from this trade. Of course, it is not the only type or form of cryptocurrency trading, but it is the dominant and most commonly used form by traders. Before moving on to the next topic, we need to make a good distinction between the process of trading

 cryptocurrency  and investing in these currencies. Trading involves buying at the lowest price and selling at the highest price i.e. treating currencies as mere instruments while investing means treating cryptocurrencies as held assets and increasing their long-term prices. Investors typically

 hold digital currencies for many years, which can last for decades, while the trader can keep selling and buying within seconds and minutes.I  cryptocurrency to buy  think the important question you have in mind now is: how do traders predict rising or falling cryptocurrency prices? The answer lies in the analysis of the analysis. .

Technical Analysis and Fundamental Analysis

First: Technical Analysis, Technical Analysis cryptocurrency to buy  Technical analysis is the most important analysis for you as a cryptocurrency trader, as it will allow you to predict cryptocurrency price changes and

 fluctuations, it depends on checking and forecasting previous price patterns of  digital currency  before repeating It does not specifically predict price, but rather a rise or fall in price and gives you the opportunity to take advantage of this change  to achieve more profits. Technical or technical

 analysis is not limited to cryptocurrency cryptocurrency to buy  trading but is widely used in all global financial markets. Technical analysis is also used to minimize risk as much as possible and can provide you with a predictive model of what will happen in the cryptocurrency market or otherwise.

Among the most important factors that are taken into account when performing a technical analysis:

1. Market Cycles

Financial markets such as cryptocurrencies have specific patterns, which some experts and economists have been able to identify, and these patterns continue to be repeated over and over again.

The reason for this repetition is that prices are mainly based on the actions of traders as well as variables in global events, especially those close to the financial and economic sector.

One cycle is divided into four basic stages: accumulation, mark up boom, distribution phase, and finally decline decline.

The stages of the ascent in market cycles are called bull market, while the stages of decline are called bear market, and we have addressed this in detail in the article technical analysis of digital currencies referred to as one of the series above.

2. Psychological Cycles

Psychological cycles are market type cycles butcryptocurrency to buy   focus more on the traders in the market, yes the traders or the people themselves, ultimately cryptocurrency to buy      they are  the ones who move the market and cryptocurrency to buy  determine its volatility intentionally or no. Psychological cycles describe  behaviors and behaviors that traders tend to exhibit at each stage of the market cycle, especially beginners, and understanding and anticipating these behaviors will allow you  to make more profits and expect

 more  market moves. precise. Of course, you have to leave your feelings at the door before entering the world of trading, but that does not prevent you from profiting from the actions of others and making profits. In general, the impact of feelings, emotions, and impulsiveness lead

 many people to make serious mistakes that they later regret. Among the feelings you should leave at the door is FOMO or the fear of cryptocurrency to buy  missing out, a feeling that causes many traders and investors a lot of losses. Buying without proper study just to avoid losing investments or trends can lead you to buy currencies at a high price and lose a lot of money instead of gaining it. Imitating Great Traders The tradition of traders, or as we say in English, whaling is one of the most important factors in the technical analysis  that traders do by knowing the upcoming movements of major traders

 controlled by the market. Yes, for example, currencies can go up if they are backed by influential people, as happened with Dogecoin when cryptocurrency to buy  Elon Musk backed them. conversely, their value could be reduced even if they received a blow from an adult whale, as happened with Bitcoin after Elon Musk announced that Tesla cars would not be available to buy bitcoin.Knowing or anticipating these big

 whale moves before they happen will make them wait for market and price swings correctly, which will make the trader a lot of money. Technical analysis is the means that most traders rely on to predict market movements.

Second: Fundamental Analysis

Fundamental analysis is a way to evaluate cryptocurrencies and is used  by investors to see if that digital currency is worth investing in. It is a set of methods aimed at cryptocurrency to buy determining whether the price of  digital currency is fair and appropriate to its true value, cryptocurrency to buy  obviously through many complex economic and financial factors. Basic analysis usuallycryptocurrency to buy   involves considering the actual interest and

 value of the asset, and in the case of cryptocurrencies here the value, use and future fate of each currency, i.e. say that it focuses more on the technology cryptocurrency to buy  itself than on  fluctuations and changes in market prices. As you now have in mind, although basic analysis is necessary in many other fields such as Forex, stock trading, etc., it is not widely used  in stock trading. cryptocurrency. So far,

 there are no clear rules or frameworks for cryptocurrency to buy  working to perform fundamental analysis of currency values ​​in the market, especially since the underlying analytical factors do not influence currency pricescryptocurrency to buy   in any way. cryptocurrencies. overview and  value of the technology rather than looking at price changes and market volatility.