Understanding of the complex world of cryptocurrencies: a crypt guide, maturation periods, arrest losses and orders flows
The world of cryptocurrencies has become increasingly popular in recent years, with many investors who flock to digital currencies such as Bitcoin, Ethereum and others. However, browsing this complex market can be discouraging, especially for beginners. In this article, we will break down the key concepts of cryptocurrency trading, including maturation periods, orders for loss of detention and the flow of orders.
What is a cryptocurrency?
A cryptocurrency is a digital or virtual currency that uses encryption (secret codes) to guarantee and verify transactions. Unlike traditional currencies such as dollars, cryptocurrencies are decentralized, which means that they are not controlled by any government or institution. The best known cryptocurrency is Bitcoin, but others include Ethereum, Litecoin and Monero.
What is a maturation period?
A period of maturation is the time taken by an investor to possess or control a particular resource, in this case, cryptocurrencies such as Bitcoin. During a period of maturation, the percentage owned by the investor increases over time, generally by 10% every month. This means that if an investor has 1,000 cryptocurrency units and their investment period is three months, he will have owned at least 100 units (10% of 1,000) after a month.
Understanding leaks stop orders
An order of loss of arrest is a type of limit order used in trading to protect against losses. When it is performed, it automatically sells the activity if it drops below a certain price, known as a level of profit. In cryptocurrency trading, arrest loss orders are commonly used:
- Limit potential losses on long positions (purchase) or short positions (sale).
- Set a target price for the rapid sale of activities.
- Protects from significant drop in prices.
To set up an order of loss of arrest in cryptocurrency trading, use an exchange such as coinbase pro or binance, which offer various options and features to manage orders.
Understanding of the order flow
The order flow refers to the historical data of the purchase and sale orders on an exchange, including their timestamp, prices and quantities. This information help traders analyze market trends, identify potential purchase and sale opportunities and provide for future price movements.
In cryptocurrency trading, the order flow is crucial for:
- Analysis of market feeling: by studying the flow flow models, traders can evaluate the overall mood of the market.
2
3
To access orders flow data in cryptocurrency trading, use platforms such as Coinigy, Cryptospector or Cryptocompare, which provide detailed insights on market activities.
Best Practice for cryptocurrency trading
- Educating yourself: Before entering the cryptocurrency market, seeking and understanding the risks involved.
- Establish clear objectives: Define the investment strategy and risk tolerance before negotiating.
- Use a correct financial leverage:
Financial leverage can amplify earnings but also increase leaks. Use a position size with 10x lever to 20x whenever possible.
- diversifies: Diffusion of investments on multiple cryptocurrencies to minimize exposure to the decline of any activity.
5
In conclusion, cryptocurrency trading is a complex field that requires knowledge of various concepts such as periods of maturation, stopping the orders of loss and flow of orders. By understanding these fundamental elements, traders can make informed decisions and improve their chances of success in the digital currency market.