Learning to Trade Binance

Cryptocurrency Trading on the Exchange Binance can be interesting and profitable, but not immediately, but with a serious attitude to it and training in trading on the site binance.com.

Cryptocurrency

To trade on crypto exchange Binance, the very first thing to understand is what cryptocurrencies are as a financial asset. Bitcoin (VTC) remains the main cryptocurrency, when studying the market, it needs to pay special attention, because its price movements immediately affect the dynamics of the entire cryptocurrency market.

But for a long time now, the market is not limited to just one Bitcoin, there are many coins and new ones are constantly appearing. They differ in price, investment potential, and breadth of distribution, so the crypto market offers great opportunities for building an investment portfolio for trading. When choosing a coin, we take into account:

• CostIt should be feasible for the crypto-trader’s deposit, including in the case of a sharp drop in price, which often happens in the crypto-market.
• Market capitalization: how many coins are available, how much of this crypto on the market (expressed in fiat currency), the rank of cryptocurrency depending on capitalization.
• VolatilityIn other words, how quickly and how much the price of the currency changes: on highly volatile digital assets earn fast and a lot in the case of a correct price forecast, and in assets with a stable rate hedge the risks.

Technical and fundamental analysis

Technical analysis is the main method of cryptocurrency trading. It is a method of price forecasting based on the principle of repetitiveness (cyclicity) of its changes: the future price of an asset is forecasted on the basis of its past values. The methods of thechanalysis are implemented on the price chart.

The curve of price movement on the chart is also a forecasting tool. But it is not enough for an accurate prediction. That is why additional tools are used. For example, patterns: graphical figures that are formed by the asset price line regularly in certain situations, so they can be used for prediction.

Indicators and oscillators are programs that are placed on the chart and are used to predict price, such as Moving Averages (MA), Bollinger Bands (BB), Average Directional Movement Index (ADX) and others. Among the popular oscillators are MACD, RSI, Stochastic Oscillator. The list of indicators and oscillators at the exchange is large and allows the implementation of any strategy. However, traders choose one or more of them for their strategies and learn to trade using them.

On Binance, the basic forecasting tools are placed in the console on the left side of the chart. Indicators and oscillators are displayed in the drop-down menu at the top, in the center of the chart. Trading with indicators and oscillators requires training and practicing skills in the demo mode (Cryptocurrency Trading Training).

Fundamental analysis involves predicting the value of assets based on economic and political events and leaders’ opinions. But in crypto trading, this method should be used with caution: it is impossible to predict with high probability how an event or news will affect the crypto market.

Strategies

Popular strategy for earning on cryptoassets is to buy and hold a coin until its price rises to the desired value. The point is that the price of cryptocurrencies grows on the long-term timeframe, despite periods of decline. The advantage of the hold strategy is that the trader does not need special knowledge, does not need to predict the price, and does not need to use tools. You need to have an account on the Binance cryptocurrency exchange, how to buy cryptocurrencies, and to which wallet to withdraw. The disadvantage is that the trader is not active and does not earn on price fluctuations.

Active strategies consist of the trader predicting asset prices on the chart for a time period and earning on price fluctuations. A strategy can be based on a time frame, such as swing trading: determining the beginning of a price movement, placing orders as it develops, and closing all trades at the end of the price movement. Or scalping, which involves opening and closing many trades in a very short time frame.

Situational strategies involve predicting price on recurring situations. For example, buying coins when their price falls slightly and selling them when the price “bounces back” (changes direction). This situation is constantly repeating, which allows you to predict the price of the asset. There are many crypto-trading strategies and they are classified in different ways. But to implement even typical strategies, you need theoretical knowledge and practice in demo mode.

Training

You can learn how to trade cryptocurrencies on your own. You can use tutorials, thematic channels on YouTube, educational sections on exchanges. Cryptocurrency trading can be studied with a teacher, on paid or free courses, offline and online.