Demo Trading In Cryptocurrency, What it Entails #002

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Hello crypto friends,

It is a wonderful opportunity to come before you all today to discuss on an issue of great importance in the cryptospace.

In one of our meetings, we discussed about demo trading, and we explained it to be a an act of trading the Financial market with a virtual account.

Making use of a virtual account means you are trading the Financial market without the use of a live money.

Today, we want to examine some reasons why traders ought to begin trading with a demo account before entering a live account, please stay tuned.

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REASONS TRADER SHOULD TRADE A DEMO ACCOUNT

There are several reasons a trader should consider trading a demo account before embarking on a live account and here are some of the reasons

• RISK-FREE ENVIRONMENT:

The cryptomarket is very volatile and investing in it without proper knowledge of it's operation is very risky.

The cryptomarket moves up and down very quickly and this makes it very easy for one to loose his invested funds

Using a demo account, you can trade the Financial market without using a real life money, and as such any funds lost will be virtual funds and not a real life money.

This supports the fact that using a demo account provides a risk-free environment.

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• FAMILIARIZATION :

By trading initially using a demo account, a newbie becomes familiar with the operation of the market and as such he won't loose much when he invests his real live money.

The more you trade using a demo account, the more you get familiar with the moves of the market, the more you learn from your mistake, and the more you attain perfection.

This inturn will make you a great trader when you trade a live account.

• STRATEGY TESTING:

Another Importance of trading a demo account is so that one can test what strategy works best for him.

There are various strategies used in trading the financial market, and what works for Trader A might not work for Trader B.

By making use of a demo account you can test the effectiveness of these strategies and stick ti which works best

• MARKET UNDERSTANDING:

Understanding the Financial market is very crucial to becoming a profitable trader, and it takes time and effort to understand the Financial market.

By trading a demo account, you can get to understand the moves of the market, how it reacts to news and how it respond to economic world events..

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CONCLUSION

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From the above explained, we have examined the reasons traders should practice trading on a demo account, please stay tuned as we discuss more in our next meeting.