These are the basics. The building blocks you need to understand and trade crypto currencies successfully online
We get into the real stuff where the action happens.
You now need to take on some more responsibility before risking your funds.
We’ve been through what’s and who’s. Now it’s time to learn when you can trade Bitcoin and digital currency. Actually, we touched on this briefly a little earlier.
Opinion varies greatly on this point. There are no established or well-recorded patterns. One tactic, to secure trading opportunities, is to set some sort of alert/notification for when a price crosses a certain threshold. Your trading strategy is the key factor here, as you will need to find the best method of notification suited to your trading plan.
Otherwise, you could focus on time-zones where the largest volume of trading happens. China has by far the largest and most liquid, markets in the world. China mines huge volumes of Bitcoin. Trading, however, is mostly done on OTC markets and not exchanges. So that time-zone would be one to watch. Otherwise, the United States and Europe have the remaining volume.
Of course, overall, it is best to take some time, watch the market and do your own research, looking for patterns.
When you do spot trading, you deposit your coin or FIAT to the exchange and “swap” the actual ownership of the asset. With a contract for difference or CFD margin trading, you are betting on whether the price will go up or go down and you do not own the underlying asset at any time. Margin trading therefore usually has an overnight charge which you need to take into account. In contrast, regular full order book exchanges rarely have custodial or time-based fees. There is also a psychological angle to consider as leveraged trading effectively creates a “debt” in order to secure a higher profit margin. CFD margin trading is probably not the best place to start for a beginner.