Best trading platform for cryptocurrency
14/02/2018In this section we will try to highlight trading in general and the best trading platform for cryptocurrency. We will understand the similarities between classic and online cryptocurrency trading. We will try to give some useful advice to understand the importance of the signals deriving from the various news.
Trading
Trading allows the purchase and sale of financial instruments. One of the most frequent question is if it is possible to apply to crypto currencies market the conventional rules and technical analysis used in the stock market trading.
Trading is a statistical advantage derived from the individuation of signals that in the past have caused a price variation. In the classical stock market there are long back testing (over 50 years) therefore they have high significance.
On the contrary, the crypto market is very young. The Bitcoin, which is the oldest currency, has less than 10 years and the traded volumes are still low. This last point allows institutional investors with huge assets to manipulate easily the market.
However, it is true that some easy parameters can provide important signals about the trends.
The study of the graphs
The study of price action on the trend graph and the recognition of price structure such as supports and resistance can provide indications on price ranges that would be worth to pay attention to.
Another useful instrument can be the Fibonacci and the Golden Ratio, especially regarding the rise and decline arrival threshold. We can use also the Simple Moving Average and the Bolliger bands. The study of traded volumes let understand how much investors are focusing on a specific crypto in the period investigated.
For what cited above and what happened until now, it will be surely more profitable to put our efforts in the fundamental analysis. In other words, stay up-to-date with the news, that in the past entailed heavy price variations.
Best trading platform for cryptocurrency
- the cost of taxes linked to transactions
- the number and quality of cryptocurrencies that can be purchased
- possibility of converting into euros or dollars
- the main currency on which the conversion rotates
Obviously an exchange with low taxes is preferable to one with high taxes. Many exchanges have more than 100 currencies. This choice may seem excellent at first. Having a lot of money with bad projects is not a good point for that exchange. In this case the saying is better than a few but good. Prefer exchanges that use euro or dollar as the main currency. Trading is already complex in itself, let alone the trading done on the bitcoin as the main currency. With these little tricks we can search for the best trading platform for cryptocurrency.
For this reason, I recommend to visit news sections to remain always up-to-date…