How to Trade Cryptocurrency?

What is the reason for the growth of cryptocurrency in India? This area, indeed, is relevant and is gaining popularity more and more.

First of all, this is due to high inflation rates and various restrictive ways of investing. Far-sighted investors are interested in creating cryptocurrency exchanges and cryptocurrency trading in India.

The most popular types of cryptocurrencies in India are:

• OG – Bitcoin (BTC)
• Polygon (MATIC)
• Litecoin (LTC)
• Binance Coin (BNB)
• Polkadot (DOT)
• Cardano (ADA)
• Solana (SOL)

How to trade cryptocurrency? A few tips for beginner traders:

1. Learn the main tools and markets in this area.
2. Explore the platforms and choose the one that suits you, such as Binany.
3. Determine your approach to trading, outline a strategy
4. Practice on a simulated trading account online
5. Open an account
6. To buy cryptocurrency, you will have to deposit funds first. You can transfer money from your bank account to your wallet via UPI.
7. Once the transaction is approved, you can start trading.

What is cryptocurrency trading?

First, you need to understand the definition of this term. Cryptocurrency is any kind of currency in any form – digital or virtual. To protect transactions in cryptocurrency, special encryption is used, it is also called cryptography. There is no central authority to issue or regulate cryptocurrencies.

A decentralized system is used to record transactions and issue new units. Cryptocurrencies are processed in a specialized distributed public registry – blockchain, where records of all transactions are distributed and stored, updated by the currency holders themselves.

Cryptocurrency units (coins) are created during the mining process. This process is not similar to the procedure for creating conventional banknotes. Mining uses the computing power of a computer to solve mathematical problems, as a result of which coins are generated. Users can also buy currency from brokers and then store and spend it using cryptographic wallets.

Crypto trading, according to many, it is a riskier type of investment, unlike stock trading. And yet, it depends on what stocks and cryptocurrencies you trade, and of course how you trade.

No matter how much you trade, it’s a good idea to make sure you do it responsibly. With simple tips and techniques, you can reduce unnecessary risk and make sure you only trade what you can afford to lose. It can be easy for some people to get carried away. If you want to learn how to better manage your trading, read our guide to set the right limits and increase overall accountability.

Responsible cryptocurrency trading requires you to manage several aspects of your trading behavior. It does not start or end with a buy or sell button. Try to incorporate as many of the tips below into your routine as possible. This may seem like a lot of advice, but it will help you improve your trading skills.

Protect your trading account and wallet

Before you start trading, the best thing you can do is secure your account. No matter how responsibly you plan your trades, it will all be worthless if your account is hacked.

Never share your private key or personal information with others. If you have the option, you can store additional funds on a hardware wallet to keep them safe.

Create a trading plan

To be successful, always set a goal for yourself. And to achieve any goal, you need

The best way to not let your emotions get in the way of your trading is to create a plan and stick to it. Thus, sudden gains, losses, rumors, or FUD cannot disrupt decision making. So what is included in a trading plan?

Your plan should outline the types of trades you want to make, the terms of the trade, and your trading goals. Your risk profile and trading style will determine your limits. You must create your trading plan with a clear mind and be happy to follow through with whatever you decide. Your trading plan may include:

• How many levers do you want to use, if any
• Entry and exit prices for specific trades
• Maximum investment amount as a percentage of total capital
• How diversified is your portfolio
• Distribution of your crypto assets
• When to stop trading (time, volume, etc.)
• Maximum losses
• Products or assets you trade

Use stop-limit orders

Once you’ve set up a trading plan, you can easily use stop-limit orders to stick to it, as you can’t keep track of what’s going on with your investments 24/7.

For example, imagine you bought 1 bitcoin (BTC) for $10,000 and the price of a bitcoin is now $30,000. You want to make sure that if the price drops, you won’t sell for less than $20,000. This will give you a profit of $10,000. To automate this, it is worth setting a stop-limit sell order.

First, you set a stop price at $22,000. This is the price that will trigger your limit order. And then you set a threshold price of $20,000, which means that the bitcoin you buy will sell for $30,000 or more if the stop price is reached.

Note that a stop-limit order is not always guaranteed to be filled, but when it is, you will always get the price you set or better.

Reinvest dividends

Every dividend you reinvest buys you more shares, which helps your profits accumulate even faster. Many companies offer automatic dividend reinvestment and encourage investors to do so.

Choose the right account to hold your investments

Everyone knows that almost everything is taxed now. And therefore, it is important to correctly distribute your investment income so that the tax authorities do not take the lion’s share of your investments.

On the one hand, such accounts provide an opportunity to save money from taxation, but on the other hand, most of these accounts do not give the right to withdraw funds from retirement accounts without paying a fine. Meanwhile, simple taxable investment accounts may not offer such tax benefits, but allow you to withdraw money at any time for any purpose.

Taxable accounts can be a good place to park your investments, which tend to lose less of the tax returns or money you need in the next few years or decades. Conversely, investments that are likely to lose more of their income from taxes or are long-term may be better suited to tax-favored accounts.

These were just the basic ways to invest wisely to earn money, you can also find your own options when you master the basic base in the field of stock markets.

Do your own research

Do your own research to check and double-check any information you find.

This advice applies to both trading and investing in coins through an exchange and using Decentralized Finance (DeFi) products. Only you know better your risk profile and what is right for your portfolio.

Before you start investing and trading, make sure you have a good understanding of where you are investing your money.

Diversify your portfolio

Diversification is the distribution of investments in different markets, that is, you invest not in one stock market, but in several projects. This allows you to reduce risk and potentially increase profits over time.

While most investors most often prefer two types of investments – individual stocks or mutual funds such as mutual funds or exchange-traded funds (ETFs) – experts generally recommend the latter investment option to maximize diversification.

Avoid FOMO

Fear of missing out (FOMO) is a common feeling for many traders. FOMO is short for “fear of missing out.” The fear of missing out on an investment opportunity can lead to an irresponsible rush, in which you forget your intended strategy and take a rash step. And although you can indeed find good information on the Internet, you should carefully study the information and check the sources.

Understand leverage

The idea of ​​borrowing funds on margin or futures in other words to get more profit is very attractive at first glance. However, losing more than you pledged or risking too much money is not responsible trading. Before you start using leverage, make sure you understand how it works.

Best cryptocurrency trading platform

Speaking about the purchase and sale of cryptocurrencies, you should to mention the Binany website. What is the Binany trading platform?

Here you can earn on trading cryptocurrency (all popular currencies are available, including bitcoin), fiat currency, stocks. It is the best platform to trade cryptocurrency in india.

• GEO – India, Bangladesh, Malaysia, Indonesia, Thailand, Vietnam, Pakistan, Ghana, South Africa, Nigeria, Brazil, Chile, Mexico.
• Year of foundation – 2019
• Languages ​​- English
• Currency – Indian rupee (INR), taka (BDT).
• Deposit/withdrawal methods – Perfect Money, PayPall, Neteller, Skrill
• Product type – stock, currency, crypto, binary options trading
• Application – Binany app for android

Find the login button in the top right corner of the page. If you haven’t verified your email address after registration, please go to email. To sign in to your account, after confirming the mail you will be sent back to the site where you can open your profile.

Enter the Binany login details and password that you provided during registration. Find the login button in the top right corner of the page. If you haven’t verified your email address after registration, please go to email. To sign in to your account, after confirming the mail you will be sent back to the site where you can open your profile. Enter login details and password that you provided during registration.

Bonuses – +100% on the first deposit

Support – chat, mail – support@binany.com, 24/7 support in 10 languages ​​(Russian, English, German, Turkish, French, Indian, Chinese, Vietnamese, Thai, Portuguese) for all users of the site.

How do options work? Let’s explore binany review.

An option is a derivative asset, its price depends on the value of the underlying shares. Based on this, trading has a high risk as well as profitability.

On your lucky day, a 1% increase in the underlying stock could equal a 5% increase in your entire options portfolio. Unfortunately, the situation can be reversed as well. Due to the high risk, investors are not always ready to invest all their funds in options for fear of incurring unexpected losses.

Where there is risk, there is always profit. Where there is profit, there is always risk. Before you start making a profit (up to 90% of the transaction amount), you need to know that every risk, like every income, is fixed in advance.

As mentioned earlier, closing a deal is one of the easiest and most affordable ways to make money. The minimum stake (in other words, the amount of the transaction) on binany1.com is 30 rupees. And the minimum deposit amount is 300 rupees.

If you are looking for the best site for cryptocurrency trading in India, go to the binany platform and you will love it.

Types of cryptocurrency trading

There are many types of cryptocurrency trading. The best way to understand which types of crypto trading are best for you is to try them out. This is possible in educational games, which provide an opportunity to take part in simulations that are close to exchange conditions.

How to learn cryptocurrency trading? Another way is to take training courses offered by the trading platforms themselves. Many of them provide an opportunity to receive a bonus in the form of an already collected portfolio of positions, with which you can start your trader’s journey.

How to start cryptocurrency trading

• Step 1: platform selection. There are specialized cryptocurrency exchanges or, as mentioned above, buying from brokers. We recommend that you carefully study “how cryptocurrency trading works”, the conditions of the seller before buying a cryptocurrency, namely commissions, security features, storage and withdrawal of funds. Some even offer educational resources, which is nice if you are a beginner trader and are into “how to do crypto trading”.
• Step 2: fund your account. Many cryptocurrency exchanges, depending on the platform, allow users to buy cryptocurrencies with fiduciary (government) currencies, most commonly US dollars, euros, pounds sterling, or when paying with debit or credit cards.
• Step 3: You can start bidding

Cryptocurrency trading strategy

There are many strategies that will help you get started with your trading. And yet, do not forget about the risks, no one is immune from losses.

How to trade cryptocurrency and make profit?

• Day trading

The essence of this strategy is to capture positions and exit on the same day. The goal of the trader with this strategy is to make a profit against the background of price movements throughout the day in any cryptocurrency of their choice.

• Range trading

Here they rely on experienced analysts who set the level of support and resistance.

“Resistance” refers to the point to which the price can rise, and therefore the resistance level is the price above the current price.

“Support” is the level below which the price of a cryptocurrency should not fall, so the support level is always below the current price.

• Scalping

Increasing trading volume for profit.

Those who have chosen this crypto trading strategy analyze the crypto asset, past trends, volumes and choose an entry and exit point during the day.

• Create a balanced portfolio

Building a balanced portfolio that includes multiple cryptocurrencies rather than just one type can be the key to success.

In addition, investors can also maintain a fixed amount of regular investment in various cryptocurrencies. This will systematically increase your risk appetite and help your portfolio earn favorable returns in the long run.

• Avoid sales calls based on hype

Investment decisions should never be based on hype created on the internet and social media.

Because cryptocurrency is a hot topic, misinformation about it tends to spread very quickly.

• Primary Research

Constantly study the updates of the whole stream of news about the crypto industry. In addition, you must assess your own finances and set an investment goal. You can explore Bitcoin, Ethereum, Tron, Ripple, Litecoin, etc. and start investing on Binany.

• Arbitration

The meaning of this strategy is that you buy crypto on one market and sell it on another.

To achieve the “spread” (the difference between the buy and sell price), you should choose exchanges with large differences in cryptocurrency.

• Bitcoin Volatility Betting

How it works? You buy a call and put an option in the same instance. Terms and price of performance must match.

As soon as cryptocurrency prices fall or, on the contrary, grow, sell a call and put an option at the same time.

Crypto trading is legal in India?

Cryptocurrency is relevant everywhere. India is one of the regions where the cryptocurrency market is growing incredibly fast. That is why a tax on income from cryptocurrencies was introduced.

There are many applications that make it possible to conveniently buy and sell cryptocurrency, but not all platforms pay a transaction tax, if the user lives in India, he himself will have to pay this tax.

Thus, cryptoc