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All About Cryptocurrency Digital 2022
Cryptocurrencies or cryptocurrencies are the talk of the hour these days, and over the past few years, we have heard that many people have become wealthy because of their trading in cryptocurrencies.
Today, trading or investing in cryptocurrencies has become one of the most popular and profitable ways to invest online, especially in the United States and some European countries.
Unfortunately, there are not many Arab sources that can explain how to trade digital currencies effectively and realistically, which has greatly hindered the spread of this method in the Arab world.
That is why we present to the Arab reader a series of articles on cryptocurrency trading at Winners in order to give him a comprehensive introduction to this field.
This article is the cornerstone of this series, which will take you on an interesting journey into the world of cryptocurrency trading to learn more about every aspect of the process.
What Does Cryptocurrency Trading Mean?
Cryptocurrencies, especially Bitcoin, are an alternative to the normal currencies that we deal with, such as: the Egyptian pound, the Saudi riyal, or the US dollar.
These currencies are based on crypto and do not themselves depend on any insurance that gives them value, like gold, but they derive their value from supply and demand. For this reason, it is distinguished by its very volatile price, for example, the price of bitcoin may be $ 64,000 today, and it will only become $ 40 thousand Tomorrow - meaning he lost $24,000 overnight - that's what experts call volatility. What creates value for these digital currencies is that they are decentralized, meaning that there is no government, banks, or even institutions to oversee and review them. This gives the user freedom and privacy in Conducting his financial transactions without fear of anyone spying on him and without having to pay exorbitant amounts to banks or financial intermediaries.
Of course, this could be a disadvantage if this privacy is not used properly, and this feature has another disadvantage that if you do anything wrong, you will not get any kind of protection or compensation, you may face fraud or the like. It is not an exaggeration to say Cryptocurrencies are used all over the world these days, but the most famous ones are Bitcoin and Ethereum.
There are many ways to profit from digital currency on the Internet, of course the most famous of them are mining and investing, and the way we are going to talk about today is cryptocurrency trading.Cryptocurrency trading is quite a profitable process, and you don’t need to fall in love with blockchain technology or cryptocurrencies, you just need to earn Money.
Trading requires a lot of skill, time and effort, but it can bring you a lot of big profits in a very short period of time. Contrary to what some people think, trading is not a gamble or a bet because - as you will soon learn - it depends on a lot of observation, research and analysis of patterns The market and the events that happen all over the world. You actually do a similar job to what a stockbroker does, looking for stocks, picking the most promising ones, and putting money into them for multiplying.
Cryptocurrency trading is very different from investing, where you don't really care about current market movements, you're looking at the long-term value of a currency years from now, but trading is where you buy and sell the currency in the short-term - for a minute at the most. We'll just talk about Trading Here, in this and other articles we will be publishing, we will teach you how to start making profits from cryptocurrency trading. However, if you want to know more about investing in digital currencies like Bitcoin, write to us in the comments and we will provide an article explaining it.
Should I Consider Trading Digital or Cryptocurrency?
Of course, you have to keep in mind cryptocurrency trading and even think about how to start trading right away, an area that has been one of the most profitable areas in recent years and is expected to remain that way for many years to come. Cryptocurrencies are like people making money effortlessly, which of course is not true. In order to start making money, you have to learn and learn some things about trading, and then you have to spend a lot of time and effort applying them in the exchanges every day to actually make money. Crypto is a business that requires you a lot of time every day to start profiting from it, in addition to developing yourself, constantly learning and following the latest news, tools and explanations. Profits and money used in trading operations vary according to the nature and type of trade, but in any case, it is hard work like any other business. .
Pros and Cons of Cryptocurrency Trading
Trading is a great option for making money from the Internet, but like anything else, it has its pros and cons:
Advantages of Cryptocurrency Trading
The most important advantages of cryptocurrency trading are as follows:-
High Profitability
Trading allows you to make more money than any other field, and with hard work and perseverance, you can double your capital in as little as a year or eighteen months. If you make the right decisions, you may be able to double your money overnight, and in a world similar to normal profits, the A 20% profit would be pretty cool. I won't lie to you, dear reader, I am 100% honest about profitability, but it takes enough experience and learning before you do that.
You Don'T Need a lot of Money to Get Started
You can start trading with any amount you have, you do not buy the whole bitcoin, but maybe even a part of a hundred thousand bitcoins. Of course, the more money you speculate, the more you will earn, but this does not deprive you of the opportunity to grow and climb the ladder from the beginning, but of course you need to more time.
There Are Many Experts and Learning Resources on The Internet.
Currently, YouTube is overflowing with hundreds of channels that explain everything big and small about cryptocurrency trading, and dozens of experts on Twitter, Reddit, and forums analyze each event and advise and develop inexperienced beginners. With a little more will and determination, you can now learn all about this topic, To become unique and be able to earn a lot of money.
Disadvantages of Cryptocurrency Trading.
We mentioned above the advantages of cryptocurrency trading, so what are the disadvantages of cryptocurrency trading, in the next few lines. We will learn about the disadvantages of cryptocurrency trading, which are as follows.:-
Trading in Digital Currencies is Highly Volatile.
As we said, one of the main characteristics of cryptocurrencies is that they are very volatile, which makes their prices change very quickly overnight, they can triple in an hour, and they can go up in a few minutes, losing 90% of their value. Lots of pressure on traders who have to go to extremes to analyze the market and predict what will happen or else they will lose a lot of money. Traders also need to control their nerves and actions so that they don't lose control and do stupid things and lose all their money.
Making Huge Profits Requires a lot of Money
We mentioned in the trading features that you can start with any amount and you will find your way among the big whales, but it should also be noted that for big and satisfactory profits you must have sufficient capital. True, you double your money, you get $20, but if your investment is $100,000, you will get $200,000 in a short period of time, which is something you can't imagine.
The Problem of Protection, Hacking and Human Error
Although the cryptocurrency itself is decentralized and cannot be detected or manipulated, the human element remains a very significant weakness. The trading platform you are using may be deceiving you, or you may be scammed by someone taking your coins. Even committing Mistakenly transferring your cryptocurrency to your wallet after the transaction and your money will forever go to someone in India or Russia. But don't worry, we will put an article on the best safe trading platforms for you so that you don't get scammed by anyone. We will also have very important secrets and tips And we will alert you to possible errors so that you do not fall into them, so follow our next articles in which everything you want.
Different Types of Cryptocurrency Transactions
In this article, I try not to go too deep and give a simple and simple introduction to those who do not know anything about cryptocurrency trading. But there are some things that you must know to gain a deeper understanding of trading, for example: the difference between technical analysis and fundamental analysis, as it will work on Deepen your understanding of the types of cryptocurrency trading. Regardless, there are many types or strategies for cryptocurrency trading, each with its own advantages and disadvantages, and the preferred method varies from one trader to another.
These Strategies Are as Follows:
1. Intraday Trading
This method is the most famous in the field of cryptocurrency trading and preferred by many traders because it allows them to make quick profits. It is implemented through many buying and selling operations that take place within a few hours of the day, so the trader closes all his trades at the end of the day. This requires The approach is to be vigilant and track and monitor the statistics and analytics of your trading platform (don't worry, we'll tell you in detail). Experience is also an important factor in this trading method, as you have to anticipate the price movement before it happens, so there is a lot of risk involved. You will buy During the day the currency is low and sell when it is high, giving you quick and almost instant gains, without any quick losses either.
2- Speculation
Scalping is a little closer to day trading, but faster if it is usually done in minutes or even seconds. The goal of quick scalping is to get a guaranteed profit with minimal risk, and you will make a small profit, but due to the speed of the process, repeating it will allow you to win a lot of Money. Traders using this method usually make dozens or even hundreds of quick trades a day. But speculation is also not for amateurs and requires a very deep understanding of the market and price fluctuations in order to be successful in making a profit. One of the most important requirements for successful speculation is the ability to focus and take Decisions are fast, as you need to deliberate and make decisions within minutes.
3. Swinging in Trading
The third and final type that we will discuss is swing trading, a strategy that often requires careful consideration when buying and selling. Swing trading is based on identifying the beginning of a downtrend or upside in cryptocurrency prices and then using it to your advantage. Sell at the best possible price to make a profit and vice versa. Swing trading can take weeks or months, so there is no need to watch analysis etc. 24/7, which is why some people like it. This strategy is perhaps the best and most suitable for unfamiliar beginners. There is enough experience and knowledge that you should definitely start with. We have written an entire article on technical analysis of cryptocurrencies and their most important indicators, as well as how to understand and anticipate the movements and trends of past bullish or bearish markets to take advantage of them.
Notes You Should Know Before You Start Trading Currencies:
Now you might be wondering if cryptocurrency trading is right for you or what? This is a very important question, although only you can answer it. By reading about trading and cryptocurrencies, you will be able to determine if trading is right for you, but in my personal opinion, it is mostly due to your love of tasks of monitoring, analysis, buying and selling. Learning to trade is possible, even very easy, as there are dozens of resources on the Internet in different languages that allow you to understand everything big and small in the world of trading and cryptocurrency.So I say that trading is theoretical for everyone, the only difference is whether a person likes and accepts any Something that requires trading.As for choosing the trading method that suits you, you first need to understand your capabilities and evaluate your experience and capabilities, but it is better to start swing trading regardless of the explanations and lessons you have heard.Intraday trading and quick speculation requires the ability to quickly and efficiently read market indicators, The risk is much higher. But you can always choose to incorporate multiple methods or approaches in cryptocurrency trading, as many in the field do. Just think about the risks and risks that you are exposed to, they are the only ones Persistent in all trading methods and strategies.
How to Start trading Cryptocurrency:
Getting started with cryptocurrency trading is not difficult or complicated, but it requires you to have a solid understanding of certain things, and it may help you in some practices before you start buying and selling currencies with money. As for the actual steps to start trading they are:
- Understand the basics required for cryptocurrency trading.
- Choose the trading platform that suits you.
- Create your account on this platform.
- Select the cryptocurrency wallet that you will use to store your cryptocurrency.
- Follow the strategy and plan for cryptocurrency trading.
These are the basic steps you can take to become an official cryptocurrency trader.
Cryptocurrency Trading Platform
Cryptocurrency exchanges are websites or programs that connect sellers and buyers while preserving their rights and protecting them from fraud and deception. There are hundreds of such trading platforms today, and each has different advantages and disadvantages, so there is no better trading platform, at least not absolute, but there is one It might be the best for you. Before choosing the right trading platform for you, you should research it well, read user reviews about its problems and drawbacks, and research its commission system to drain your profits.
Finally
Cryptocurrency trading is one of the most lucrative fields at the moment, and everyone wants to learn and start earning thousands of dollars from it. In this article, we give you a summary of the most important outlines of cryptocurrency trading, to decide if the field is right for you or what? We discussed cryptocurrencies in detail and explained All its details are in this article, and we talked frankly and transparently about transactions, their disadvantages and advantages, and finally we talked about the most important types of encrypted digital currency transactions and the advantages of each type and the shortcomings of each type. I hope you enjoyed this article and encouraged you to enter this promising field, I hope you share your thoughts with us About this article and let us know, if you would like to talk about any
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