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.
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
Second: Fundamental Analysis