Must-Read be Table of Contents
7 tips for trading cryptocurrency
As of November 5, 2018, the cryptocurrency market has exceeded USD 220 billion. The cryptocurrency market fell sharply in early 2018 after the exponential growth of 1400% in 2017. As such, the cryptocurrency market shows great volatility, so in-depth research and preparation are essential before trading.
In this post, we will share 7 tips you must keep in mind for cryptocurrency trading. We recommend taking a look before you start trading in earnest.
1. Choose your exchange carefully
Once you have decided on the cryptocurrency you want to trade, it’s time to choose an exchange. Choosing a user-friendly and secure platform is very important for cryptocurrency trading. The interface should be intuitive and the platform should offer a variety of cryptocurrency options. What’s more, digital assets need to be protected from potential risks with an electronic wallet that can be stored safely. As many users are also essential, we should not miss the liquidity part.
2. Setting goals
As investors, everyone needs to analyze the market directly and set clear goals. You will be able to set the level of Stop Loss and Take Profit based on your goals. High volatility, in other words, means that the market may act inversely for investors. We should stick to the goals we have set and keep them unchanged, even if there is temptation.
3. Strategic risk management
In order to make a good profit, you shouldn’t just focus on the lows and highs. If you start with small profits and accumulate little by little, you will eventually see big profits. We recommend that you do not start trading unless you have a solid risk management strategy.
4. Diversifying your portfolio
Bitcoin and Ethereum are just the tips of the iceberg. There are over 2,000 cryptocurrencies in the market. We recommend that you do not invest all your assets in one cryptocurrency, but diversify your investment with new and promising cryptocurrencies.
5. Accepting the huge volatility of the cryptocurrency market
Cryptocurrency trading is often compared to riding on a roller coaster. In 2017, Bitcoin’s value exceeded $19,000, but after a year it is trading around $6,000. It’s true that this great volatility makes even most existing traders tense and attractive at the same time. Therefore, we must maintain our own risk management strategy and diversify our assets to further increase our opportunities for profit.
6. Avoiding Emotional Decisions
People are always influenced by emotions. However, if emotions are involved in the transaction, it can be in great trouble. Therefore, it is essential to make trading decisions based on a broad analysis without being emotionally biased, but intuitive judgments can help decisively. We always recommend that you develop a good strategy and trade accordingly.
7. Always paying attention to market movements
In terms of major events or schedules, a week in the cryptocurrency market can be compared to a month in the traditional stock market. Therefore, it is necessary to look at the market not only on a daily basis but on an hourly basis. It can be a big help to know how much you can spend before deciding to invest. You may reach your target price in minutes, but it may take months.
The cryptocurrency market offers many potential opportunities for investors despite the risks involved. A good investor enters after analyzing the market. And if you do lose, you take your mistakes as a lesson. The most important tip is to trade within the range of losses you can afford.
If you are looking for a reliable and secure exchange for cryptocurrency trading, choose IronX. With 24/7 customer support in a variety of languages, IronX will be the first cryptocurrency exchange with a fully licensed platform. Feeling safe while trading is essential. IronFX Group’s years of online trading experience and EmurgoHK Group’s experience in inventing the Cardano blockchain will provide a solid foundation for the IronX Exchange.
5 Common Mistakes Newbies Make in Crypto markets
As of November 9, 2018, the cryptocurrency market has exceeded 231 billion USD, and more than 2000 electronic currencies are traded on more than 500 exchanges. And because of this, the number of people interested in digital asset trading is increasing day by day. Cryptocurrency exchanges are opening the door to new and existing customers to participate in the cryptocurrency market.
However, not all exchanges operate reliably, reliably and securely. Due to a large number of exchanges, it is true that it is not easy for those who want to start trading for the first time. Those who want to start trading for the first time, often choose a bad exchange. IronX would like to share 5 key examples to help you avoid this choice.
1. No direct analysis
The amount to be invested in the cryptocurrency market is a hard-earned asset for the customer. Therefore, informed judgments and decisions are essential. If you decide to buy/sell cryptocurrency only after listening to the so-called expert advice or rumors, there is a high possibility that you will incur significant losses in the long run. Therefore, before investing, you need to do your own research and understand and make decisions about the product and its value. Your analysis and perspective will be your advantage.
2. Lost Private Key
Cryptocurrency is based on blockchain technology that guarantees the security of encrypted assets using cryptographic keys. You need a public key and a private key to prove ownership of the cryptocurrency. If you lose your private key, you need to be careful not to lose it as long as your assets become unrecoverable. Since blockchain does not have a customer support department, there is no way to recover the keys if they are lost.
3. Stop loss not used
As the cryptocurrency market shows great volatility, it is recommended to set a stop loss. Otherwise, if the market moves in the opposite direction, within a few minutes, all of the assets in your account may be lost. You can reduce losses and manage risk by setting the position to be automatically liquidated at the price you have predicted and set in advance. This will help both novice and existing investors survive in the cryptocurrency market.
4. Expect big profits from mining
Early miners of Bitcoin or Ethereum saw a lot of profits. As such, it can seem attractive to those who want to profit quickly. However, mining takes more and more time, the process is becoming more complex and resource-intensive. So, unless you have enough computers and enough time, it is recommended that you distance yourself from mining.
5. Emotional decisions and lack of confidence
The moment your emotions are ahead of the opposite sex, it is no longer difficult to make informed decisions. Feelings such as fear of loss, greed, and reward sentiment are well known in financial markets that lead investors to bankruptcy. Therefore, you need to analyze yourself so that you are not affected by market conditions, find a strategy that suits your trading style and stick to it. If you first create a practice account and trade it yourself, you can test your trading skills and strategies before you start trading. And if you’ve developed a new strategy or modified an old one, you can always come back to your practice account to test it out.
Choose IronX to invest in Crypto
When you start trading for the first time, it is important to choose an exchange that is reliable and easy to use. IronX is an exchange developed to be easily accessible to both beginners and veteran traders. The exchange was created by the IronFX Group, which has a number of award-winning global online trading platforms in connection with top financial institutions, and the EmurgoHK Group that created Cardano.
IronX will be the first fully licensed cryptocurrency exchange to offer customer support services in over 30 languages, 24 hours a day, 7 days a week. The main goal is to link with the latest blockchain technology by adding flexibility to existing trading platforms that are already conveniently provided. Liquidity will be naturally secured by allowing exchange customers to move freely to the IronFX online trading platform.
Portfolio diversification strategy with Cryptocurrency
The Dow Jones Indices fell about 1300 points over the two-day trading period in 2018. It has incurred more than 5% losses for traders. Diversifying your investment portfolio plays an important role in minimizing risk in these downturns in the market. Diversified investment helps manage relative investment risk.
The virtual currency market is operated by different factors than other financial markets. While not affecting geopolitical, economic development or the movement of most financial markets, the price of virtual currency depends on the laws of supply and demand, maker rumors and expectations, or certain crypto and blockchain news.
Let’s look at the advantages that virtual currency can function as a means of portfolio diversification.
Advantages of portfolio diversification
When you want to diversify your portfolio using virtual currency, the first three things to do are The presence or absence of virtual currency, platform (e.g. ETH, NEO, ADA), and utility tokens.
However, the most important point is whether cryptocurrency is useful in the portfolio.
1. Correlation close to zero
Correlation plays an important role when diversifying assets to minimize the impact of price fluctuations. The virtual currency has been found to have a near-zero average correlation with other assets over time, especially with traditional hedging instruments such as bonds, commodity indices, foreign exchange, equity, etc. These products are not directly regulated by governments or agencies and operate completely independently of other systems.
2. Hedging strategy against the central bank bubble
Traditionally, central banks have functioned as “last lenders”. However, changes in monetary policy have turned central banks into “first buyers”. Many bankers and analysts have pointed out that bond and stock markets cause massive losses when the price bubble bursts. As a safeguard for such a scenario, the virtual currency can be an alternative to diversifying investment assets.
3. Security
Except for a few problems that need to be solved, transactions using the blockchain are safe. In theory, blockchain systems and cryptocurrencies are permanent, strict, and cannot be hacked. So investors don’t have to worry about losing their investments due to fraud or hacking.
4. Potential power
Centralization and changing regulations have had a profound impact on markets around the world. Cryptocurrencies are decentralized and are not regulated by financial institutions or specific governments. The virtual currency has huge potential as it is still in its infancy to enter the mainstream.
It is advisable to balance your portfolio by investing in other types of financial assets, including virtual currency. However, please be careful before you start trading cryptocurrency. Click here to go to the article.
IronX, IronX Exchange is an exchange established as a joint venture between IronFX Group and EmurgoHK Group, an online global leader. IronFX is a global trading leader and has won many global awards so far. Emurgo HK was the creator of the Cardano blockchain, leading the successful launch of ADA coins. IronX Gusero is regulated by the FIU of the Estonian Finance Bureau and audited by Hosho and Hacken for IRX Smart Contract Blockchain Security. 24/7 multilingual support is a must for them to ensure the satisfaction of IronX’s customer transactions.
5 Misleading Myths of Cryptocurrency
Since Bitcoin came to the public’s attention, the concept of digital currency has captured the imagination of financial market investors and tech companies. 2019 marks the 10th anniversary of Bitcoin being known to the world. We are seeing a turning point where cryptocurrencies, which have shown a unique asset form over the past decade, will now play an important role in the future. Businesses and governments are already adopting it as a payment method. Start-ups around the world are devising blockchain technology that deviates from the existing frame as a reliable technology.
Therefore, as we celebrate the 10th anniversary of cryptocurrency, let’s take a look at the myth of the misunderstanding of blockchain and cryptocurrency. We hope you enter the new era of digital currency with the right knowledge.
Myth #1: Bitcoin is a blockchain, and a blockchain is Bitcoin.
Yes, that’s right. Blockchain technology has become popular with Bitcoin, but it is not limited to Bitcoin. Blockchain is a distributed ledger that allows peer-to-peer (P2P) consent for trading records. This technology is open source, popular and anonymous. Bitcoin is a basic technology cryptocurrency that also maintains a transaction ledger.
Bitcoin is one of many applications of blockchain technology. When someone uses a cryptocurrency, the miner will be rewarded with bitcoins and solve difficult mathematical algorithms. Blockchain technology was used exclusively by Bitcoin, but over time, the technology has spread to a wider range of areas. This phenomenon gave rise to a second myth.
Myth #2: Blockchain technology is only used for cryptocurrency
Both technologies work together but can function independently. With the advent of the Ethereum blockchain, smart contracts have emerged. Blockchain is applied in many industries because it can be used as a tokenless shared ledger. From real estate, supply chain, identity management, banking, or food supply chain, blockchain technology is used in many fields.
Myth #3: the cryptocurrency market is unregulated
The situation five years ago and the present are a little different. Recently, major countries have taken steps to regulate cryptocurrencies. Even China’s ban on cryptocurrency trading is part of the regulation. According to a 2017 U.S. SEC investigation report, the offering or sale of digital assets is subject to federal securities laws. Even the IRS recognizes it as an asset subject to capital gains tax.
Myth #4: Anonymity of cryptocurrency or blockchain users
Yes, that’s right. However, anonymity is guaranteed to a reasonable level. If it is displayed anonymously when trading Bitcoin, the ID will remain public when trading. Many government periods have formed relationships with exchanges to help track wallet owners. However, coins like Monero use additional features such as ring signature and address derivation to protect identity.
Myth #5: tokens and coins have the same purpose
Coins like Bitcoin function as safes. On the other hand, tokens have a more complex function. The utility token on which the ICO takes place has the right to provide access to the network or receive dividends from future companies. Tokens can also earn raw materials or loyalty points.
Another point is that not all coins are used for cryptocurrency transactions. ADA Coin is a native token of EmurgoHK, a global leader in blockchain technology, and a venture builder for the Cardano blockchain project. IronFX has developed the IronX cryptocurrency exchange as a leader in global online trading. The exchange supports 24/7 customer service in 30 languages.
IronX’s key currency is the IRX token. IRX is a utility token based on ERC-20. IRX Smart Contract is a security audit conducted by the leaders of the blockchain security audit organization Hosho and Hacken. The token’s public sale starts on November 1, 2018, and is on sale for a limited time.
IronX is approved and regulated by the Estonia FIU and offers a variety of deposit and withdrawal methods including cryptocurrency deposits and withdrawals. IronX is currently preparing licenses for Gibraltar and Malta.
Please check IronFX official website or contact the customer support with regard to the latest information and more accurate details.
IronFX official website is here.
Please click "Introduction of IronFX", if you want to know the details and the company information of IronFX.
Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...