The majority of cryptocurrencies function without the backing of a central bank or government. Instead of relying on government guarantees, decentralized technology called blockchain underpins the operation of cryptocurrencies. Cryptocurrencies do not exist as a stack of notes or coins.
Instead, they live only on the internet. Consider them virtual tokens, the value of which is decided by market forces created by those seeking to purchase or sell them. Cryptocurrency is formed through a process known as mining, which entails employing computer processing power to solve complex mathematical problems to earn coins.
Users can also purchase the currencies from brokers, which they can then store and spend using encrypted wallets
Leveraged Trading
Often allows traders to place trades with a leverage of up to 125x. As a matter of fact, setting your leverage is fairly simplified.
Limit Orders
Limit orders are used when you want to buy at a specific price.
Market Orders
The most basic order type, market orders are used to buy e.g. Bitcoin at a spot price.
Stop-Limit Orders
These are typically used as a stop-loss mechanism, but not always. The stop price is the price at which your order will become a regular limit order. The price tab indicates when you want to buy.
Take-Profit-Limit Orders
As the name suggests, this is mainly used to set the price at which you wish to collect your profits.
Risk Management
Position Sizing [Use Picture below] Risk and Reward Ratio [A golden rule says, the more riskier a position gets, the more profitable it can get] Stop Losses / Take Profits
– Futures are crypto derivatives, which you can trade in order to long or short cryptocurrencies. Essentially, they are the options of crypto.
– Futures also allow traders to take bigger position sizes through the use of leverage, which can work both in and against the favor of traders.
Shorting and Longing
With Futures traders are able to predict and bet on whether a coin will gp up or down. This is also called shorting and longing.
– Long: Trader believes a certain crypto will increase in price.
– Short: Trader believes a certain crypto will decrease in price.
Example Alerts
– Coin: BTCUSDT
– Entry: 50.000
– Price Target (PT): 50.500
– Stop Loss (SL): 49.900
– Leverage: 100x
– Action: Long
The main components of future plays are the following:
– The Cryptocurrency
– Entry Price
– Exit Price [SL/PT]
– Leverage
– Action [Long/Short]
You’ll need to create a wallet with a Broker who supports Cryptocurrency trades and Futures Trading (optional). Currently, the USA does not support leverage trading on cryptocurrency.
See our list of brokers on our Trade Resources page
Simply put, it’s a software that connects your account and trades automatically when the analyst you chose to follow enters and exits a trade. These are very lucrative for those who are interested but might not have the time to follow the market 24/7.
Not only does it work, it works incredibly well. A 15-minute set up process, once approved by your broker, and you’ll begin earning while you enjoy other parts of your life. It’s simple, automated and successful!
Learn more about Copy Trading in our Discord Community and Trade Resources page