Steemit Crypto Academy Contest / S3W4 – Cryptocurrency Trading by @steemdoctor1 | #burnsteem25 | Club100
Hello everybody.
Welcome to this post. I hope that all of you will be good and happy and enjoying your precious health with the grace and blessings of Almighty Allah. Today, I am actually here to take part in the Steemit Engagement Week 4 of Season 3. This publication is in the SteemitCryptoAcademy and the topic of discussion is Cryptocurrency Trading. So, let's start the discussion without any waste of time.
Discuss in your own words what is cryptocurrency trading. And tell us what type of trader are you or do you see it more effective? Justify your answers.
Trading is not a new term but it is a very old term that is used for the process of dealing with each other. In past, people used to buy and sell their various goods and items with goods that are other than the previous ones. After that, the concept of currency was introduced and people used to trade various things with the currencies. So, we can simply say that trading is something like selling and buying various items/goods/things.
When we talk about cryptocurrency trading then I would like to say that is the most advanced form of trading which people used to trade their digital assets that are actually known as cryptocurrencies. So, the buying and selling of these digital assets are what we call cryptocurrency trading. Wait, let me clarify that it is a form of crypto trading but is not the whole of cryptocurrency trading at all.
Actually, cryptocurrency is a very wide term that is of various kinds types. Buying cryptocurrency assets at low prices and selling them at high prices to get profit is a type of trading and it is known as "Simple Trading". While actually cryptocurrency trading is a process in which we take advantage of the volatile nature of the cryptocurrency markets. Yes, the markets of cryptocurrencies are very much volatile and users can take advantage of these fluctuations from either side.
As I mentioned above that there are various types of cryptocurrency trading so a short explanation of each type is given below.
- Spot Trading:
It is a type of trading that I have already discussed with you. Buying the crypto assets at low prices and selling them at high prices to earn a better profit is actually called Spot Trading. Spot Trading is the most simple type of cryptocurrency trading and it is the most secure and less risky style of crypto trading.
- Leveraged Trading:
This trading of cryptocurrency is further of two types that are Future and Margin trading. It is a type of trading in which the users can take advantage of both sides of the market. If the market is supposed to be going in the downward direction, leveraged trading could be implemented and short trade could be taken to make a valuable profit.
It is actually a type of trading in which the trading platform gives some value to themselves the users as borrowing money and users can make trades and earn better profits than that spot trading. The traders are allowed to choose the leverage of their own convenience ie, 2X, 20X, 100X, etc. It is riskier than spot trading as there is always the risk of liquidation of funds.
- P2P (Peer-to-Peer Trading):
Another type of cryptocurrency trading is P2P trading. It is not actually cryptocurrency trading by itself but it is just the purchasing and selling of the cryptocurrencies for fiat money. Users can utilize the P2P trading features to buy and sell cryptocurrency assets. Users can buy their crypto assets with fiat money directly. Also, they can sell their cryptocurrency assets for fiat money.
There are actually various trading styles that are considered in cryptocurrency trading. First, there are such traders that are Intraday or Scalp traders. Such traders always remain in the search of such trading opportunities where they can make quick trades and also close their trades quickly by taking considerable profits from the fluctuations of the market.
While there are others that are known as Swing or Large Term traders. They are those who believe in the future of cryptocurrency very strongly and have a long-term trading style to take advantage of the price volatility. These traders buy the crypto assets and then wait for the market to reach its marked levels and take profit points based on the technical or fundamental analysis they have done.
To me, I am a scalp trade most of the time and the other time, I also behave in such a way that I consider myself as a swing trader. Actually, I have been in the cryptocurrency trading world for three or more years and I have changed my trading styles many times from Intraday to Long-term or vice versa. But according to my own opinion, scalp trading is more effective than swing trading.
Actually, the market of cryptocurrencies is so volatile and unpredictable that the next move of the market is impossible for traders to predict. So, the fluctuations in the prices of the cryptocurrency assets are the most positive factor that can allow the traders to take advantage of these movements. If a trader opts for the scalping style, then he could be able to secure good profits from many small trades instead of a single large trade.
Have you tested several time units? What Timeframe and Crypto Asset Pairs Are Best for You? Why?
As I have mentioned above that I have been a trader of various trading styles at different times. Actually, the trading style of the traders depends on the timeframe or the reference point that he/she is taking into account for their trade. If a trader is trading a crypto asset for a very long time, then he will surely go with the large time frames like 1 day, 1 week, or even a month if he is a long-term investor in the market.
On the other hand, if a person has adopted to do scalping or intraday trading then he will surely switch to the short timeframes of the frame of reference. For example, if I am a scalp trader then I will surely move towards the short timeframes to do my technical analysis and it is possible that I could use the timeframes of 4 hours, 1 hour, and even in minutes frames.
To me, I am a technical analyst and a scalp trader as well. So, whenever I decide to do scalping in the market and take quick advantage of the market moves, then I usually take the short timeframes like 4 hours, and 1 hour into account to do the analysis of the price chart, and then after adjusting the take profit and stop loss points, I will execute the trade. While on the other hand, the swing trading style will surely demand the consideration of the large timeframes of days or even weeks.
As I have mentioned earlier that I have been in the crypto trading world for several years so I have tested and traded in many of the crypto pairs. But there are a few assets that I trust the most and that are actually my favorite trading pairs. Some of them are BNB/USDT. The reason behind the selection of this pair is that it is the most successful coin of the time because BNB is the native token of the largest crypto exchange, Binance.
Another crypto pair that is very much liked by me is the ADA/USDT pair. This is because this is the most successful token of the Cordano blockchain. Also, XRP/USDT pair is also like by me because XRP is the native token of the successful Ripple ecosystem. Moreover, other crypto pairs that are liked by me are STEEM/USDT, 1INCH/USDT, and BOND/USDT. So, these are some most important crypto pairs in my crypto trading book.
To acquire some trading experience, it is important to trade regularly. Have you had regular trading activity over the last few months? Tell us what you learned from this experience. ( eg: Over the long term, do your gains exceed your losses? Do you have a method of recording and reviewing your trades to improve your performance? refined your trading system after being dissatisfied with its results?)
I have mentioned earlier that my concern with cryptocurrency trading is a few years back so I have traded many good trades that gave me reasonable profits and also, and the others are also there that left in short, or sometimes large losses. But fortunately, I am among those traders that are overall in good profits.
To the extent that the question raised of trading cryptocurrency regularly, I would like to favor this strategy as I know that daily trading is much more effective and profitable than visiting the market after several breaks. Actually, the market of cryptocurrency is so volatile that its fluctuating nature urges the traders to pay strict attention to the market so the best thing to overcome this situation is daily or regular trading.
Actually, I have been trading cryptocurrency assets since 2019 and from that time, I am a regular trader who always remains in the search of the best scalping opportunities in the market. I have been an active trader in the market of cryptocurrencies but I accept that nowadays my activity is disturbed due to my studies. Actually, studying is my first priority and I have quit regular trading now I used to choose the swing trading strategy. Have a look at the below screenshots of my recent trading activities.
 |  |
|---|
In the above screenshots, you can see that currently, I am holding the LINKDOWN token in my portfolio. Actually, I have now turned to leveraged tokens like LINKUP and LINKDOWN. This is because of the fact that I have been busy in my daily routines so much that I do not have enough time to pay for cryptocurrency trading properly. So, to get good swing trading rewards, I used the leveraged tokens for weekly, or bi-weekly profits. I just buy the tokens and then set the risk management points according to my analysis.
From my trading experience so far, I have learned the following things that are most useful for scalp traders.
Never buy an asset at the same price. Also, wait for the next buy order after executing the first one.
It is very important to control your nerves. Always be calm, and peaceful and provide satisfaction to your mind.
Risk management is the most important thing to improve your trading experiences. Without proper Risk Management, your traders are just like the passengers that are traveling without having any destination in the mind.
Always do your own research and technical analysis of the market before executing a trade in the market.
As a scalp trader, the most important thing is that you should have a scheme of accepting the profit. If the desired profit has been taken, then never be greedy.
Recording keeping is a very important part of any business or investment. So, the same is the case with cryptocurrency trading, recording keeping, and tracing your previous mistakes and trying to never repeat them, again and again, is the best thing to improve your trading experience. Keeping a record of the executed trades allow a trader to assume his performance in the market.
I have also taken some measures to ensure my record-keeping habit myself to improve my trading experience. I always keep a register and a pen beside me whenever I sit on my PC to do the trade. I always note the entry and exit points in the market. This also helps me in risk management. Secondly, I always plot the entry, exit, Stop Loss and Take Profit points on the charts that I have utilized to execute the trade.
What impact does artificial intelligence have on crypto trading in the short and long term? Have you used it before or want to handle an automatic trading robot? Tell us the causes of your choice.
We know that this is the era of advanced technology and the Artificial Intelligence is the most advanced form of technology. The used of Artificial Technology has also been implemented in the world of cryptocurrency trading. Now, we can see that different BOTS are handling the accounts of various huge investors in the market. Also, the exchanges have also introduced BOT or Automated trading on the platforms.
According to my opinion, there could be two possible mindsets regarding the use of Artificial Intelligence in cryptocurrency trading. There are some benefits, as well as, there are also some drawbacks of using bot trading. These advantages and drawbacks are discussed below.
With the use of robots, there could be more chances of accurate signals from the technical analysis.
There could be a better mechanism for effective and efficient trades in the market. Robots can manage to trade many times per day or week.
The physical health of human beings can also be avoided from damage with the use of trading bots.
There is no sense of emotion in the bots, so emotionless trading can lead to various profitable decisions.
The use of automated trading/bot trading is not suitable for the scalp trading strategy as the bots could be susceptible to missing various profitable points.
The price manipulations may lead to misguidance for the trading bots and thus there are more chances of losses in the executed trades.
Conclusions
Crypto trading is a wide term that can be defined as the process of taking the advantage of the volatile and fluctuating nature of the cryptocurrency markets. In simple trading, the buying of the crypto assets at lower prices and then selling them at higher prices is actually known as Spot trading and it is the most simple type of trading.
There are several types of cryptocurrency traders based on the timeframes that have been adopted for their trading decisions. These traders could be intraday traders, scalp traders, swing traders, or long-term investors. The use of Artificial Intelligence in crypto trading holds its advantages as well as disadvantages that are discussed above in detail.
I would like to invite my friends @chant, @patjewell, and @msquaretk, to take in this amazing contest.
Writer: @steemdoctor1
Thank you for publishing an article in the Crypto Academy community today. We have accessed your article and we present the result of the assessment below
Comments/Recommendation
Overall, you have done great in this contest. Scalp is effective in thr crypto market due to the highly volatile nature of the market. However, scalping in the crypto market is also risky and proper risk management needs to be setup in scalping style. Thank you for participating in this contest.
Total|9/10
Thank you very much professor for your kind reviews.
Great post! I have learned a lot from it.
When my kids were small we all learned about E.T.
Now with their kids we have to learns about AI.
The world is forever changing.
Good luck with the contest!
Yes, world is changing on a great pace. Thanks a lot for your precious comment.
The pleasure is mine 😊
Yeah scalp trading sometimes gives us good profit within short time. Although as you see most people do scalp trading without any knowledge about technical analysis so they may get huge loss. So there must be a suggestion to all that first learn about technical analysis then go for trading.
Thank you very much brother for your previous comment.
Nicely presented, I as well prefer to be a scalp trader, as with scalping you could easily enter the trade in a short frame, in as long as you are certain with your analysis and you have a proper management, then you should be good wit scalp trading, find short term, set target and exit.
Good luck brother.
Thank you brother for your kind words.
You have made an exceptional entry here my friend. Truly ever crypto trader needs to do his or her own research about the asset under review and also take the profit ag when due instead of getting greedy. In thi way, you can maximize the little profit you have obtain. I wish you success in this contest.
Thank you so much brother for valuable comments here.
Being a scalp trader is good if one has the time, by taking advantage of market fluctuations to enter the market, and make a quick profit.
If not because of your busy schedule, I'm sure you would have made good use of the recent market fluctuations. Your explanation about AI is good, I enjoyed reading your post. Thank you for sharing.
Thanks a lot for your precious words on my post.
Of the cryptocurrency trading types you’ve talked about I can’t deny that p2p trading is number 1 for me. The fact that I can just simply sell my asset to someone and get laud directly in hard currency is too god. Likewise, I can easily buy assets.
Thanks for sharing.
Good to know that you know the p2p trading the most. Thanks a lot for your comments.
Congratulations, your post has been upvoted by @dsc-r2cornell, which is a curating account for @R2cornell's Discord Community. We can also be found on our hive community & peakd as well as on my Discord Server
Felicitaciones, su publication ha sido votado por @dsc-r2cornell. También puedo ser encontrado en nuestra comunidad de colmena y Peakd así como en mi servidor de discordia