Cryptocurrency Exchange: The Principles of Trading

A cryptocurrency exchange is an online platform where users buy and sell assets to make profits. Many newbies want to learn how to start trading and make money. This is exactly what we are going to talk about in this article.

The movements in the rates of digital assets provide an opportunity to make income on a crypto exchange, as traders can buy low and sell high. The cryptocurrency market is quite volatile, so the prices of digital assets change even within one day. It provides great earning opportunities. However, there is a high risk of losing all investments without proper knowledge and practice.

So, trading on a crypto exchange means:

• studying risks;
• knowing basic trading strategies;
• understanding charts;
• using stop-loss and take-profit tools.

Besides, trading is based on strategies. Let’s consider the most well-known ones.

• Scalping. It supposes working with high fluctuations in the cryptocurrency market. A trader makes many daily transactions on the exchange and receives a small profit from each. The risk of losing is relatively high here. Such a strategy requires good knowledge of the market situation and quick decision-making.
• Trend trading. It implies determining the direction of the coin rate and identifying critical support and resistance levels. 

How to trade on the WhiteBIT crypto exchange?

Even an unverified user can perform a simple exchange of crypto on WhiteBIT. The platform also offers many opportunities for additional income. Here is a list of the main ones:

• SMART Staking;
• spot trading;
• WhiteBIT Codes;
• margin trading;
• referral program, and so on.

To gain access to all the tools and start trading, you have to sign up and go through the verification procedure. It takes about a day if no suspicious activity is detected. Then you should replenish your balance (by the way, the exchange allows you to buy crypto for hryvnia with a bank card), access the trading terminal, and place an order for the operation you need. The exchange, in turn, offers the current rate for the transaction, and the latter is carried out.

This algorithm for trading on a cryptocurrency exchange is typical for all such exchanges. The difference is only in the size of fees, a set of tools, an interface, the number of available assets, and their prices.