ATOMUSDT CHART ANALYSİS- EDUCATİONAL POST
Trading 101: What Is Trading All About?
To understand algorithmic trading, you must first be familiar with trading. Trading means actively buying or selling an asset. There are many assets available on the market, and you may have heard of stocks, bonds, or… cryptocurrency.
When you trade, you take a financial position on the price direction of related assets.
Let’s break this sentence down. Taking a position is a financial term to indicate you are buying (long position) or selling (short position). Price direction of assets is the rise or fall in value you are expecting them to reach in relation to each other.
So, what are these related assets? In crypto markets, you can trade on individual cryptocurrencies against the US dollar (in crypto/US dollar pairs) or against another cryptocurrency, via crypto/crypto pairs.
It will become even clearer with a couple of examples. Trading is about making decisions, based on market analysis and time frames. If you believe the value of BTC (bitcoin or BTC is the primary asset of the Bitcoin blockchain) will rise against the US dollar, you go long – which means you buy BTC using US dollars. On the contrary, if you think the value of ETH (ETH is the primary asset of Ethereum) will fall in relation to bitcoin price, you go short on ETH/BTC – you sell it.
In finance, margin trading is the practice of borrowing funds from a third party to increase your leverage. This is also possible in crypto, and it allows traders to have an overexposure, or leverage, to the underlying market with a small deposit. But remember, crypto is highly volatile, making leverage trading very risky.
One last bit of vocabulary: when prices go up for a certain period of time (weeks/months), we say we are in a “bull” period (or bull market). On the contrary, a “bear” period happens when prices are falling
To understand algorithmic trading, you must first be familiar with trading. Trading means actively buying or selling an asset. There are many assets available on the market, and you may have heard of stocks, bonds, or… cryptocurrency.
When you trade, you take a financial position on the price direction of related assets.
Let’s break this sentence down. Taking a position is a financial term to indicate you are buying (long position) or selling (short position). Price direction of assets is the rise or fall in value you are expecting them to reach in relation to each other.
So, what are these related assets? In crypto markets, you can trade on individual cryptocurrencies against the US dollar (in crypto/US dollar pairs) or against another cryptocurrency, via crypto/crypto pairs.
It will become even clearer with a couple of examples. Trading is about making decisions, based on market analysis and time frames. If you believe the value of BTC (bitcoin or BTC is the primary asset of the Bitcoin blockchain) will rise against the US dollar, you go long – which means you buy BTC using US dollars. On the contrary, if you think the value of ETH (ETH is the primary asset of Ethereum) will fall in relation to bitcoin price, you go short on ETH/BTC – you sell it.
In finance, margin trading is the practice of borrowing funds from a third party to increase your leverage. This is also possible in crypto, and it allows traders to have an overexposure, or leverage, to the underlying market with a small deposit. But remember, crypto is highly volatile, making leverage trading very risky.
One last bit of vocabulary: when prices go up for a certain period of time (weeks/months), we say we are in a “bull” period (or bull market). On the contrary, a “bear” period happens when prices are falling
Publicações relacionadas
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Publicações relacionadas
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.