The principle in cryptocurrency trading is generally to buy coins at a low price then sell them when the price rises.
If the price of coins you buy goes down, you have to hold it for some time in the hope that coin prices go up and can be sold to make a profit.
But if you sell it cheaper than the purchase price, of course it will result in a loss.
Topic: The principle of trading - page 3. (Read 492 times)
Some of the principle of trading crypto includes setting long term goals, knowing about risk tolerance, controling ones emotions, handling the basic first, diversifying your investments link and never leverage your assets.
it is only work for those who do not have a product to back up their project or a newly project.
but it is not work for them who have a ton of experience on cryptocurrency and an unique idea.
for example,
look at CARDANO'ADA',how many coins are in total right now ?
approximately around 25,927,070,538 ADA on circulation right now,and every coin is around 2300 Satoshi.
and compare it with NEM'XEM'
its supply around 8,999,999,999 XEM on circulation and every coin is around 3300 Satoshi.
based on that,we could see that ADA has a lot of coin on circulation compared to XEM.
approximately around 3:1 .
but why the price did not show us its value based on its supply ? that is why i said it's only work for those projects.
but it is not work for them who have a ton of experience on cryptocurrency and an unique idea.
for example,
look at CARDANO'ADA',how many coins are in total right now ?
approximately around 25,927,070,538 ADA on circulation right now,and every coin is around 2300 Satoshi.
and compare it with NEM'XEM'
its supply around 8,999,999,999 XEM on circulation and every coin is around 3300 Satoshi.
based on that,we could see that ADA has a lot of coin on circulation compared to XEM.
approximately around 3:1 .
but why the price did not show us its value based on its supply ? that is why i said it's only work for those projects.
The most basic business rule in the cryptocurrency market is the surfing principle. This means that you will be buying low-priced coin and then wait for the price to sell and get the desired return. Demand for supply and demand in the cryptocurrency market is one of the things you would be interested in to choose when to buy and sell accordingly.
The principle of trading crypto is normal as trading other crypto currency, it works with the law of demand and supply, when there is less supply or scarcity of a coin or token , it will cause a shot up in the price if the demand for the coin is high. When there is more supply of coin than the demand , there will be a downtrend in price. Always make sure you check that this principle are in place before making a trade.
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