What is Trade Coin? Detailed Trade Coin Guide for Beginners

By Dorothy 11/28/19 3:14 PM

What is Trade Coin?

The term Trade coin is nothing new to those who have invested in Bitcoin, Ethereum Coin, Ripple Coin, Monero, Litecoin, etc., or also known as “Surfing”. We will buy and sell coins for a profit. For example, you buy Bitcoin at a low price and then sell it when the price goes up. Trade coins are usually applied to currencies with strong exchange rates for a short time, maybe for several days, or even every hour.

You must be a highly experienced person, including the ability to read and understand price charts in order to apply Trade coins effectively. In addition, the ability to judge, assertiveness and luck factor are indispensable to help you succeed. Currently, most currencies are influenced by Bitcoin, so you need to know the situation of Bitcoin price first to grasp the price of any coin.

“You should also note that when Trade coin selects only the listed coins, it is accepted for trading by the community. And usually exchanges will provide the authorized currency, you can view valid coins on Coinmarketcap”.

Before Trade Coin, you need to know these terms in advance

Dump: It means discharging or selling off the market to withdraw money. This is a concept with cryptocurrency traders on exchanges. Some people who trade on the cryptocurrency exchange find that the coins they hold are not going well. They will find ways to sell off his cryptocurrency to withdraw as soon as possible.

Pump: Means pumping, in contrast to Dump

Currently, Dump and Pump is understood as a form of market manipulation.

Sharks, whales: Only one or a group of people holds enough coins to manipulate the market.

Hold: Holds a certain coin and does not sell despite market volatility.

Stop loss: is one of the most important terms in Trade coin, many traders have said: “Before making money, you must keep your money”. This means that when you buy Bitcoin at a price of $ 10,000, then the price does not increase according to your expectations, but continuously decreases. At this point, you should set a stop loss within your losses, instead of witnessing your assets reducing.

When the market is more stable, you accept losses and wait for the opportunity to buy it back, so your trade will be profitable.

Take Profit: Meaning that when you buy Bitcoin at $ 10,000, your expected price is $ 11,000, then you will place a Take Profit order at $ 11,000 when the price reaches your expected price range, the order will automatically activate. Then the price up or down is no longer relevant to you; you just need to observe the market and find your entry points again, because Take Profit is never wrong.

Support: This is the support price that whenever the price touches this level, it will pop up. Currently, there are many ways to determine this Support point, you can use the MA line, the trend line,…, but you should not be too dependent on it to make your decision to buy and sell. You should refer to other factors: such coin news, and other momentum indicators…

Resistance: This resistance level has the same way of determining the support level, but its characteristics are opposite to the support level that every time the price touches the resistance level, it will pop down.

Volume: Trading volume, there will be sellers if you buy. When the sale is completed, it is called a successful transaction and is included in the total transaction volume of that coin.

Long: Buying coins (Used for margin)

Short: Sell coins (Used for margin)

Margin: A form of Trade Coin that uses leverage, usually 2.5 times. This means the exchange will give you 2.5 times the amount you own. When you have 1 BTC and you trade margin, you will have 2.5 BTC to trade. However, this way has a lot of risks. If you are new, you should not use this method to make a profit, because of the more significant of the profits, the higher the risk. When you use leverage, but your trading ability is weak, your account may be burned for a while. The reason is that the coin market has an extensive price range, not to mention the price of sharks, or bookmakers.

FIAT: A currency issued by the government, for example, USD, VND.

USDT (Tether): a digital USD. Traders often use USDT when trading coins to “avoid storms”, meaning that when the market is volatile, traders will sell coins to USDT to protect assets from declining, because USDT is worth ~ 1 USD.

Market capitalization: The total capitalization of all coins currently presents in the cryptocurrency market.

Coin and Token: Coin and Token are two different cryptocurrencies.

BTC Dominance: The dominant index of Bitcoin. That is the total capitalization of Bitcoin / the total capitalization of the entire market. You can view this indicator on Coinmarketcap; it will be displayed as follows:

What are the ways to trade coins?

There are two popular forms of Trade coin used by many traders today: Trade according to technical analysis and news.

Trade according to technical analysis: if you are new, this is a quite tricky form and you need to learn to be able to use. With this form, traders will have to observe the price action of coins on the graph. And traders must calculate the liquidity of that coin to analyze supply and demand fluctuations. In addition, there are many other factors, such as you have to learn indicators, capital allocations, trading psychology and then determine when to buy, sell or stay the same. Of course, technical analysis is not always right, no matter how good the Trader is, the market sometimes goes against their expectations.
Trade by news: The news heavily influences the current cryptocurrency market. The good news is that the price increases and the bad news decrease because most investors suffer from “FOMO syndrome”. With this trade coin, Traders will rely on market news to predict prices. Since then, determine the time of buying and selling to make a profit. You should remember that when news is released, all technical analysis is greatly affected. Although technical analysis of a coin gives us a good buy signal, the news of that coin is bad; the price is still down as usual.

Which Trade coin is more effective in these two ways? Each trader will have a separate trade. Many traders combine these two trade ways to complete their trading system. However, the ultimate goal is still to make a profit and you choose the trading method that best suits you. Most importantly, the position you select when you enter this market. You are a full time or part-time Trader. In general, you have to choose the right trading time frame for you. This may determine how you will become a trader.

Which exchanges are safe and reputable to trade coins?

Now, there are many exchanges on the market. However, only a handful of reputable and safe exchanges are trusted by a lot of people to use for trading coins.

Which coin should you choose to trade?

There are two popular coins in the cryptocurrency market today, which are used by many traders to make a profit. These are called Top Coin and Shit Coin. So what are Top Coin and Shit Coin?

1) What is Top Coin?

Top Coins are coins or tokens with large market capitalization. It could be in Top 10, Top 20, Top 50 or Top 100 on CoinMarketCap.

Advantages:

The level of investment is considered to be a lot safer than Shit Coin. Because currently on Coinmarketcap has more than 2,000 coins, the coins up to the top 50, or Top 100 will often be trusted by the community.
Large liquidity: you can easily trade these coins on the exchange, without fear of no liquidity.
Less manipulated, so the risk of the trade is lower than Sh*tcoin.

Disadvantages:

Less price manipulation, so the ability you can XX accounts in the short term is shallow.

2) What is Sh*tcoin?

Sh*tcoin is an altcoin with small market capitalization. These coins are often ranked very low, obscure and it is often listed on low reputable exchanges.

Advantages:

The level of strong price volatility (big waves). If you have good analytical ability, choose the right point of purchase and sale, you will make huge profits.

Disadvantages:

Because of its very low liquidity, you are easy to get stuck when buying and selling these coins.
Big price fluctuations are both advantages and disadvantages of Sh*tcoin. When you play Sh*tcoin, the technical analysis seems to be ineffective. Sh*tcoin are usually hit according to news, or when sharks have collected enough goods. Therefore, to play Sh*tcoin, you need to be sensitive to the news with a little luck.

For Sh*tcoin, its value is very low, but by the time bump, the price increased hundreds of times. So even though it is known as Sh*tcoin, many people still invest in it, because its profits are very high. Playing Shit Coinusually plays in the direction of chance.

Instructions for basic trade coin steps for new players

Step 1: Learn about Bitcoin and Altcoin cryptocurrencies: If you are new, the first step is to learn about Bitcoin.

Step 2: Register an account at Bitcoin, Ethereum, USDT, .. to buy and transfer to international exchanges to start trading.

Step 3: Post your account on international coin exchanges to transfer BTC, ETH, USDT, .. to start trading. You can invest in Binance, which is the largest and has a low transaction fee. In addition, if you want to diversify assets, you can use other exchanges.

Step 4: Learn how to read charts and trading coin support tools. You can learn trade coin online, find basic and advanced trading materials, learn the techniques of good traders on forums, blogs, etc. In short, you need to equip knowledge, experience if you want to “win” in trade coin.

Some experience you should know when Trade coin

1) In investing, your biggest rival is yourself. You have to overcome greed and fear.

2) When everyone is greedy, that is when the market is about to adjust. Take profit. If a 30% increase, take profit now. Only when taking profits, the money is yours.

3) When the market is scared, panic sell, it is an opportunity to consider buying. When crypto is off 30%, you can buy it slowly, in 2 or 3 installments.

4) Never buy in the middle of a rally if it has risen more than 20%.

5) When the market is falling, transfer money to the core coins like Bitcoin, ETH. The core usually lower prices; the market will return to protect these coins, less likely to die.

6) To invest effectively, HODL to die or constant switch is not good. It is important to get in and out at the right time and depending on the coin. Hold only good coins (prestige, influence, use-value, active community). With poor coins, be ready to cut losses if you find that it is already high, unsteady, late because of a previous strong rally.

7) Listen to people but trust your assessment and make decisions based on your own judgment. You will be confused without your personal opinion, which will lead to a great loss of money. If you are wrong, you may lose money, but you will avoid it later.

8) Crypto is a zero-sum, speculative game. People take each other’s money. To win, you must be luckier, wiser, tougher, faster than others. Note that you cannot be forever fortunate and only once unlucky you can return to the starting position. If you want to participate in the crypto game, you must be smart, hard-headed, quickly grasp the market movement, appreciate and make fast decisions.

9) Crypto is easily manipulated by media. Read daily news, in influential and highly respected newspapers such as Bloomberg, CNBC, Bitcoin Magazine. You can take advantage of these newspaper sites to anchor by market, through the following characteristics:

When they sing the chirping song together, it signals that the market will be green that day, especially those that are called will continue to be green.
If the tune is the sound of a funeral drummer, be very careful.
If the bad tune lasts more than a day, take profits and wait for a sharp sale.

10) Keep a schedule of events that may affect the general market or the coins you are investing in. For example, hard ford, segwit2x…

11) Join small groups of experienced crypto traders and share of action. The number of about 10-20 people is just enough. If it is a good group, you will receive timely sharing and useful analysis. When the market is down, you will also receive mental shares and avoid unwise decisions.

12) Learn more about technical analysis; it is quite right when the market is in a normal state (not over-hype or over-panic). The most reliable indicator is the RSI. If the RSI is high, signaling an overbought, correcting down, you should consider selling. If the RSI is low, oversold, upcoming, you can buy. In addition, it can be purchased thanks to the divergence or convergence of RSI.

13) Let’s dig deep into some coins. Among them, choose which coin you like it, maybe because you trust its founder, CEO, vision, technology. When you invest in a coin you love, you tend to learn more about it, helping you make better decisions. You will also avoid giving up and not coming back while it may bounce higher.

14) Do not invest in coins showing signs of fraud according to coin lending, multi-level, Ponzi models. Its expression is overflowing advertising, promising attractive hard profit — definitely scam.

15) Only invest the money you can lose. Crypto is a high-risk, high return. You may be much x2 x10, but be ready to lose them all.

Is it true that Trade Coin is a scam?

Trade Coin is by no means a scam. Although it says investment, Trade Coin is no different from a “game”. Many people, also called “gambling with knowledge”, take risks, have the opportunity to make a lot of money too. Whether it is a Trade Coin or a long-term investment, there is a risk. Therefore, you should determine before joining this cryptocurrency market.

“If you have knowledge, gambling is also an investment. Without knowledge, investment is also a gamble. ”

The fact that some people say “Trade Coin is a scam” is because they join the Trade Coin groups entrusted. That means you will send money to others and let them trade for you; in return, you will receive% interest by day, week, month. This form of Trade Coin trust is currently emerging by many groups of scammers, after receiving the trust money of investors, they will disappear along with the money. Since then, many people called Trade Coin a scam.

How to avoid fraud when Trade Coin?

To avoid being scammed, you must have a good amount of knowledge and understanding of Trade Coin. If you are new, you should carefully understand the Cryptocurrency market to avoid possible risks.
You need to be able to capture and analyze information. It is not easy to do. Therefore, you must regularly monitor the market, refine information related to Trade coins.
You should buy the coins in the top 30 at most because these coins are harder to manipulate. You can avoid encountering Pump and Dump.
And it is important never to put an egg in a basket.

Conclude

The crypto market is still in its infancy, and there is a lot of potential lefts. So if you are serious about your assets, you should take the time to learn, research on it, to get the maximum profit. Good luck.

What is Trade Coin? Detailed Trade Coin Guide for Beginners