Are you planning to start a journey on Cryptocurrency trading? Well, I would like to advise you guys that before starting anything, you must have complete knowledge about it. And so I am here to guide you about trading in Cryptocurrency. Well, today I am going to apprise you about some key elements of Cryptocurrency which are required to get success in Cryptocurrency trading.
So, let’s have a look at them.
Order Book: You can also call it as Market Depth and it is the number of buy and sell orders at a particular price of Cryptocurrency. It should be regularly updated so that it can be your needful partner in ascertaining the tenderness around Cryptocurrency.
Stop Loss: As reflected by the name, sell stop loss is created to control loss in your investment. So it can be a very powerful tool in alleviating risk. Well, you can earn a profit after buying stop losses even if your Cryptocurrency hit the price above your buy-in price.
Supply And Demand: Well, supply and demand affect not only Cryptocurrency, but it also affects every currency.
Utility: Utility means how useful can be a thing is. And obviously, if something is useful, it is valuable. And so with the Cryptocurrency. The more useful your cryptocurrency is, the more valuable it is.
Relative Strength Index: RSI compares the ongoing price of the Cryptocurrency to its past and determines the firmness and speed of the movement of market price. If a cryptocurrency is overbought or oversold, the Relative Strength Index compares the immensity of contemporary gains and losses. RSI will indicate you if the market price will reverse.
The Moving Average Convergence / Divergence Indicator: Convergence Indicator reflects that the two averages are coming together while the divergence reflects that the two averages are getting apart from each other. It is a positive signal to buy Cryptocurrency if MACD reaches above the signal line. On the other hand, if the MACD reaches below the signal line, it pessimistic to sell Cryptocurrency.
So, guys, these are some of the key elements of Cryptocurrency. So, if you are starting a journey of trading in Cryptocurrency, you need to keep these points in your mind so that you can achieve success in it. And before concluding this article, I wish you good luck with your new journey. And if you have any doubts, we would love to hear them and guide you anytime. Thank You.