Ive traded stocks. Ive traded forex. Ive traded back rubs. And my business is online estate liquidations so one might say safely I have done some trading.
Im confused as heck though. Ive been wrapping my head around this crypto thing with the recent run up and the massive bubble pop still going on and looked into actually trading in it a bit. There is one super confusing thing that has me not pulling the trigger. The fact that you cant trade with USD. I understand the process. Buy Btc or Eth with USD. Transfer that coin to an exchange that offers many other alt coins for trade. Then pick a winner or loser and go with it.
The problem? How can you come out good in this type environment? Say you bought $1000 USD worth of Ethereum this morning at $1000/1. So you now own 1 Ethereum. You see ripple trending down burn half your etherium short selling ripple at $1.36. So now you own .5 etherium and 367 ripple. You buy out your short at $1.25 making 11 cents for a $40 increase but as we all know.........you are trading back for the current value in Etherium. Which has just gone down 9%. So what was worth $540 minutes ago......the $500 worth of 367 ripple plus the $40 profit you turned shorting it you are now putting back into etherium that is now priced at $920. If all things were considered equal then that is .58 etherium added to your point .5 you did not trade. So now you have a grand total of 1.08 etherium and you are up on the day..............on etherium at least? Except that is now worth $993.
And now I know the above doesnt exactly work this way as the value of one alt coin to the next is going up and down based on their value related to each other and not the USD..........but when the goal for me is USD I watch the tickers in USD value when I make decisions to buy or sell.
Point being how do you play this game when there is not one thing stable about any of the prices you are working with or sitting on currently?
Trading Cryptocurrencies can be fun and profitable but you need to know the basics.
I would suggest to invest gradually if you are new and keep in ming the risk factors. The rise and fall in the prices are unexpected but here is the chance to turn a nickel into dollar.
Try simple interfaces for trade so that your eyes focus on the trades rather then the complex information or figures which you can juggle with later on. Like on CEX or other platforms it is very simple to trade, you may try various type from simple trading to instant trade or simply buying a crypto currency to margin trading.
P.S Again please invest carefully and read the risk policy of platforms
If you have any questions please do ask.
Happy trading.
