The easiest way to earn money on tokens and coins is to purchase and long-term storage of assets. But this technique makes a profit only if the price of bitcoin and other digital currencies will grow. Trading on crypto exchanges gives you the opportunity to earn both on the rise in price of assets and on the reduction of their price. But the profitability of this method depends on the user's ability to predict the dynamics of tokens and coins. To do this, different strategies for trading cryptocurrencies on the stock exchange are used. Beginners need to learn all the methods of analysis and forecasting and choose the most convenient and effective.
The main principle of speculative trading is to buy cheaper, sell more expensive. Regardless of the specific strategy, users on crypto exchanges work according to such a general algorithm:
Choose a trading pair or a specific asset.
Assess the probability of continuation or reversal of the trend.
Determine the moment to open a deal.
Create a buy or sell order (in stock slang, this is called a long or short position).
Expect quotes to change in the right direction.
They close the transaction after receiving the desired income, or if the operation will bring an unacceptable loss for the client.