What Is the Right Way to Trade Cryptocurrency on the Exchange?

If you don’t want to lose money, don’t trade at all. If you want to lose less, at least don’t make the basic mistakes of beginners in trading.

Traders use technical and fundamental analysis of cryptocurrencies to predict the results of their trades. I prefer the former because you can really read almost everything about the asset on the chart. Of course, of particular importance is also the analysis of the project’s news background and its overall reputation.

That is, it is important to understand that analysis of cryptocurrency charts does not guarantee any results. They simply simulate the near future in accordance with the trader’s logic and without taking into account unpredictable events. In addition, he can forget to take into account an important factor or make a mistake in calculations. In other words, the room for error is huge, and it is still impossible to predict the future.

In other words, as soon as you hear a rumor about a “big event” that will have a positive effect on the price of a cryptocurrency, I immediately buy that asset.

But you have to be careful: there is a high probability that on the day of this event, traders will see a big drop.

By the way, the best service to monitor exchangers can be found here. You can quickly understand where the most profitable cryptocurrency exchanger is located.

Cryptocurrency financial surge


Significant growth in digital assets came in 2020, when cryptocurrencies began working closely with stock markets during the pandemic. Just that year, the dollar rallied and U.S. stock prices collapsed on exchanges. Despite the tightening of banks’ monetary policy, investors began investing heavily in digital assets. Cryptocurrency itself is highly correlated. This means that the value of individual coins is gradually increasing, with positive potential. Moreover, if we consider the reverse process, the value of cryptocurrencies is gradually weakening, that is, when the value of one cryptocurrency declines, the value of another declines following it. When the stock market collapses, bitcoin becomes cheaper, followed by all types of altcoins.

The most important conclusion is this: it doesn’t matter which types of cryptocurrencies make up your digital asset portfolio. If the stock market comes under pressure from geopolitical external factors, all cryptocurrencies will decline in value, and portfolio diversification will not affect the decline in total value. But it is possible to choose a few coins which have positive potential and which will be interesting to investors from all over the world. In this case, if the stock market calms down and quotes start to rise, the most promising cryptocurrency will significantly increase its real price.

The answer to the question, “Is it worth investing in cryptocurrency in 2024?” is definitely yes, but on one condition: if you are fully financially savvy and have experience investing. If you are just at the beginning of your financial career, then the first thing you need to do is to understand the structure of the exchange and learn how to determine the potential value of each coin.

When trading cryptocurrencies on the exchange, it is crucial to stay informed and make well-informed decisions. One valuable resource for traders is to consider Binance signals. These signals provide insights and recommendations based on market analysis, helping traders navigate the volatile cryptocurrency market with more confidence.

By incorporating Binance signals into your trading strategy, you can benefit from the expertise of experienced analysts who closely monitor market trends and indicators. These signals can assist in identifying potential buying or selling opportunities, allowing you to make more informed decisions and potentially maximize your profits.

By combining these elements and continuously learning about the cryptocurrency market, you can enhance your trading skills and increase your chances of success.

Basic principles of the cryptocurrency market


Always analyze the trading volume and total market capitalization of cryptocurrencies. This way, you will be able to identify unpopular digital assets, the rate of which will fall for a long time to come.

Don’t try to find the perfect moment to start trading. Use current forecasts and start buying the currency before it starts rising, short-term or long-term falling, to avoid falling for the tricks of market manipulators. Remember that rates can be artificially altered by big players, so the opinion of the crowd is not always right, or rather wrong in most cases.

Don’t wait for a minimum or maximum rate. A review of the cryptocurrency market shows that you can change the price by tens of percent in just a few minutes. The right decision for beginners is to stick to a strategy of small increases in profits.

Don’t risk all of your capital. As a general rule of thumb, one trade should be no more than 3-5% of your total assets. This principle minimizes the risk of losing all of your funds at once, because even several losing trades in a row can be covered by one profitable one.

Don’t believe the predictions of the chat rooms. This does not mean that the opinion of the majority should not be taken into account. Think for yourself, analyze your risks in advance and follow your strategy to the end.

The cryptocurrency market does not tolerate gambling. Retail and large traders compete here. Some take their winnings, while others leave the market empty-handed, and sometimes with debts. That’s why trading in digital assets must be taken seriously and every step should be calculated and thought of the possible negative consequences.

A beginner must first decide on a strategy: investing or trading. Allocate an amount which he is not sorry to lose. Then buy cryptocurrencies and transfer them to an exchange or cold wallet. You can preliminarily train on a training account, read thematic literature, and take courses.

The cryptocurrency market is notoriously unpredictable, with rapid changes influenced by factors like regulatory updates or tech innovations. For traders, a dedication to ongoing education is crucial. Staying updated with reliable news sources and working with reputable outlets such as Bybit exchange can make the difference between seizing an opportunity or missing out.

By closely monitoring market trends and understanding emerging blockchain technologies, traders can make informed decisions. For instance, being aware of Ethereum’s shift to a proof-of-stake mechanism could have informed investment strategies.

Every trader knows the dangers of letting emotions dictate decisions. A sudden price surge might tempt one into rash investments, while a drop could lead to panic selling.

Having a clear, predetermined trading plan can mitigate these risks. Using tools like stop-loss and take-profit orders not only automates decisions but also lessens the chance of emotional interference, ensuring a more stable trading journey.

How much money do you need?


In order to trade profitably on the exchange and make good bets, you need, according to professionals, at least $1,000. However, the minimum bet for a transaction on the popular Bitfinex exchange is $20, so you can start with that amount as well.

It is best for a beginning trader to start his practice with small invested sums, because at the beginning there is a high probability of losing all his finances. After all, a novice trader does not yet have the experience and practice to make the most profitable deals. Accordingly, those or other mistakes when buying/selling cryptocurrencies and the subsequent loss of invested capital are a possible outcome of events.

How much can I earn?

If you do not take risks and carefully monitor all the indicators, then, according to the experience of our interlocutor, you can earn 2.5% per month on transactions with a deposit of $ 1000, that is, the profit will be 30% per year. For comparison, the return on investment in the U.S. market, according to one of the investors, is 5-15% a year.

However, recall that the cryptocurrency market is very volatile, for example, now some cryptocurrencies can grow by 30% per day.

Most Popular

To Top