What is TradeCoin? How to trade coins effectively for newbies

What is TradeCoin? What are the forms & terms of trading coins? Effective coin trading experience for beginners is here!

Blockchain technology has continuously evolved and every year makes a new step in the financial markets. At the same time, their niche markets are also gradually growing stronger.

If in 2017, BTC peaked at $20,000, but mainly traders bought and sold on regular exchanges.

Now, the trading of other coins (or trade coins) has expanded more strongly, from form and scale, from manual to automatic, from centralized to decentralized.

Along with the strong increase in the price of Bitcoin, trading coins has become a lucrative profession for traders. So what is Trade coin? How to start trading coins? What should newbies pay attention to when participating in trading coins?

What is Tradecoin?

Trade coin is the buying and selling of coins or tokens on the cryptocurrency market, some of the most commonly traded coins are: BTC, ETH, XRP, ADA, LINK, DOT, etc.

There are thousands of coins in circulation in the market. You can buy it from:

• Centralized Exchange (CEX): Exchanges are managed by a 3rd party, every coin/token you deposit into your account on the exchange is managed and controlled by that 3rd party.
• Decentralized exchange (DEX): Exchanges are built and operate in a decentralized manner on the Blockchain platform, allowing the purchase and sale to take place peer-to-peer on the Blockchain network without going through any any intermediary.
• From participating in the ICO, IDO, IEO, … of the project.
• From Exchanger aka Crypto asset traders.

The ultimate purpose of trading coins is similar to other financial transactions, which is to make a profit. So how to trade coins? Let’s go from form to method!

03 simple steps to trade coins for newbies

Step 1: Prepare

First, you need to prepare:

• Bank account to be able to make USDT/BTC/ETH purchases directly on P2P exchanges, or buy and sell through OTC intermediaries…
• Cold wallets store coins if you want to store them in your wallet for safety.
• Identity verified accounts on exchanges that support trade coins such as: Binance, FTX, etc.

Step 2: Buy coins

You can buy coins directly from Euro, or buy USDT first and wait for the right price to buy coins later.

Step 3: Conduct the transaction

Once you have everything prepared, you are ready to trade.

However, before trading, you should fully equip yourself with technical analysis indicators, as well as review guidelines on risk management and loss prevention to create a strategy. trade that is right for you.

Classification of forms of trading coins

Spot Trading

Spot Trading is a transaction that pays and receives coins immediately, which you can withdraw to your personal wallet, and are completely owned by you.

To put it simply, this form is like trading, buy a coin (import) and wait for it to increase in price, then sell (discharge) to make a profit.

And when the price has decreased in the short term, the value of that coin decreases, you still do not lose completely, unless that coin goes to 0.

Margin Trading 

Margin Trading is a method of trading using funds provided by a third party, which simply means that you mortgage existing assets (here coins) to borrow more money for trading. .

In margin trading, we will have 2 main types of orders: Long & Short, specifically:

Long Margin: That is to buy margin, now you will be able to buy more coins with a larger amount than the total assets that you mortgage on the exchange, specifically.

• You predict an upcoming coin will increase in price, you use margin to borrow more money, buy more coins, when the price increases you will make more profit.
• Conversely, if that coin does not increase in price but decreases in price, you will lose more, if the loss is too high compared to the value of the initial collateral coin, the exchange will liquidate all coins, you will lose. the entire initial collateral coin.

Short Margin: An order to sell margin, also known as a short sale, specifically:

• If you predict an upcoming coin’s price drop, you can make a profit by mortgaging an asset (here may be another coin) to borrow that coin and sell it at the current price, then Wait for that coin to decrease in price, you buy back the borrowed coin to pay the floor, the remaining amount is the profit you earn.
• On the contrary, if that coin does not decrease in price but increases in price, you have to buy back that coin to pay the floor at a more expensive price, you will suffer a loss, if the loss is too high compared to the value of the initial collateral coin. then the exchange will liquidate all mortgage coins, you will lose all of the original collateral coins.

The similarity between spot trading and margin trading is that it will be paid immediately and receive the coins immediately, but for margin, you cannot withdraw that amount of coins to your personal wallet, the coins are only on the account. your exchange (ie the exchange that holds the coins).

Long – Short Margin order on Trade coin exchange

Derivative

Derivative is a financial transaction contract between two or more parties, based on the future value of an underlying asset. Derivatives themselves have no intrinsic value.

That is, you trade on the value of another coin/token, not directly owning it. Profits are generated based on the spread and price movements of that underlying asset.

In derivatives trading, there are four basic types of contracts:

• Forward Contract: An agreement to trade between two parties at a specified time in the future. With the price determined and agreed by both parties at the present time.
• Futures Contracts: The form of forward contracts (Forwards) has been standardized and listed on official exchanges.
• Options Trading: A contract in which one party has the right to require the other party to fulfill its obligation to buy or sell an amount of the underlying asset. At a specified price at the contract for a certain period of time in the future.
• Swap: An agreement between two parties A & B. In which, they exchange the cash flow of party A’s financial instrument with the cash flow of party B’s financial instrument for a certain period of time.

10 basic coin trading terms you need to know

Here are 10 basic trading coin terms to know for those who are just starting out in trading:

1. Dump: The price dropped sharply.
2. Pump: The price increased sharply.
3. Stop loss (SL): Stop loss when buying coins but for a certain time the price does not go up, instead, the price drops continuously, you feel it continues to decrease, you should stop loss. Accept losses and wait for the opportunity when it hits the bottom, then buy again, when the price increases, sell out to make a profit.
4. Take profit (TP): Take profit when you feel such a profit rate is suitable for you and maximum profit, safe.
5. Support: A place where when the price runs to can increase again, the demand to buy in that area is more than the demand to sell.
6. Resistance: A place where when the price runs up can fall again, where many investors tend to sell more than buy.
7. Volume: Transaction volume. If you buy, there will be sellers, when you finish buying and selling, it is called a successful transaction and counted as a Volume.
8. Long: Buy coin (for margin), you open a position and if the price goes up, you will make a profit.
9. Short: Sell coin (for margin), at the time the order is running, if the price drops, you will make a profit.
10. Margin: Is a form of Trade coin that uses leverage, usually 2.5 times, ie the exchange will lend you 2.5 times the amount you have. When you have 1 BTC that you trade in margin, you will have 2.5 BTC to trade.

Long – Sort Binance

Reputable coin trading platforms

Trade coin on Binance exchange

The first name will definitely be Binance, a crypto exchange founded in 2017 by Changpeng Zhao in China and trusted by many brothers in the coin trading community.

You can trade coins on Binance exchange through Binance Futures with leverage up to 125x.

Register an account and start trading coins on Binance at: Binance.com

Trade Coin interface on Binance exchange

Trade coin on OKEx exchange

OKex is a cryptocurrency exchange founded in January 2014 in China, by Star Xu and allows you to trade coins with quite high leverage up to 125x, helping you to increase your assets quickly. fast.

Register an account and start tradingcoins on OKEx at: https://www.okx.com/

Trade Coin interface on Okex exchange

Trade coin on Huobi exchange

Huobi is a cryptocurrency exchange with the largest trading volume in China. As of the time of writing, Huobi exchange is having the third largest trading volume in the world after Binance. Huobi offers pretty low leverage, 3x and 5x.

Đăng ký tài khoản và bắt đầu tradecoin trên Huobi tại: Huobi.com

Trade Coin interface on Huobi

Trade coin on FTX exchange

You must be no stranger to the FTX exchange, an exchange that specializes in providing derivative products related to cryptocurrencies such as: Spot (instant trading), Futures Contracts (future contracts), Option (Options), Leveraged Tokens (Margin) and OTC.

From July 25, 2021, FTX only allows you to trade margin with leverage ratio of 1x, 3x, 5x, 10x and 20x.

Register an account and trade coins on the FTX exchange at: FTX.COM

Trade Coin interface on FTX

Trade coin on Kucoin exchange

Kucoin exchange is also an exchange from China like Binance, the maximum leverage when trading margin is 10x and trading futures is 100x.

Register an account and trade coins on Kucoin exchange at: kucoin.com

Trade Coin interface on Kucoin exchange

05 effective ways to Trade Coin

Here are important notes in the trading process, as well as a bit of experience in how to trade coins that you need to pay attention to to minimize losses and increase your profit:

Have goals and knowledge

Determining goals: Setting goals is necessary, if you do not have a clear goal, the price will go up, you will not want to sell, when the price drops, you will regret it, and never know when to stop for the first process your private.

Identify the coin market: You should determine at what time the market is in order to have a reasonable investment strategy. The person who takes the initiative in the game is the one who always holds more wins.

Technical analysis: This is the basic knowledge in trading coins. Although there are many different schools of investment in investing

But basically technical analysis is a necessity, just like you go to high school, high school, college, and university.

They are the basis to help you make judgments through the analysis of specific numbers.

Capital allocation and risk management

Determining the level of investment capital: Crypto market is quite risky, of course, with large risks, the profit will also be high. When participating in investment, to ensure the investment will give you the most comfortable psychology to make an informed decision.

Determine the amount of investment you can spend without psychological impact and daily life is best for the investment process.

Reasonable division of capital: The investment certainly cannot be 100% profitable, so you can only optimize your capital to invest in many places and get maximum profit.

The division of capital into many different sources: long-term, short-term, medium-term investment will bring the best and continuous profit.

Avoid common mistakes in Trade coin

Mistake when choosing coin/token: The market has several thousand coins/token and they are born every day. Just like any other commodity, choosing the right coin at the right time is the key to a successful investment process.

Confusing news and rumours: The financial world is more or less influenced by the “rich” and “famous” people. Price manipulation can also happen, but if you can’t distinguish between real news and rumors, it’s easy to be led in the direction these operators want.

FOMO or FUD psychology, unreasonable time fund: The simple reason is that the Crypto market operates 24/7 and its mode of operation is much faster than the traditional financial market. If you cannot arrange the time properly, prepare the lose/win mentality in advance, your plan may be ruined.

Greed when taking profits and fear when cutting losses: It is necessary to determine the profit/loss ratio that you want and can tolerate. You can’t just watch your trades lose money to burn your account as well as profits increase and decrease, not knowing what the goal is right.

Understanding buy/sell signals

Bull Trap, Bear Trap & Account Fire: Entering the market, you certainly understand that investing is not easy.

The market will always create traps to attract investors and if you are not alert you will walk out miserably.

Buy wall & sell wall: On exchanges, there is usually a buy wall / sell wall at that time for transactions.

Of course, you can’t rely entirely on them to make judgments, but you can use it as a basis to determine which side the market is trading in, and how much the price is being pressed.

Screen every received signal

SCAM and things to know: Scams will exist everywhere and all the time if you are not careful, especially in Crypto almost everything is anonymous.

Save your password, private key carefully, or never reveal information to anyone else if you don’t want to wake up one morning and your account is empty.

BTC Price Movement: Crypto is created and developed in conjunction with the development of BTC, so if you invest without paying attention to the price of BTC, it will be a big mistake.

All information is for reference: All information you should consult carefully because not all information is correct and of good quality and more importantly, the main decision is still up to you.

Conclude

To become a professional Trader is not a simple matter and can be done in a few days, but the profit will be proportional to the effort you put in.

If you really want to start seriously with Trade coin, you need to be fully equipped with all the knowledge and a strong mentality.

Follow Idoimeta.net Technical Analysis column to learn about technical analysis tools and indicators, so you can be ready and confident to join Trade Coin!