Cryptocurrency Contract trading 101 PART1 (BASICS )

    More than 5trillion$ pool of dollars revolve per day in the cryptocurrency sphere. while others make a whooping huge amount of money (millions) from this pool, many actually lose thousands of dollars. 

One thing you must take home is that in as much as cryptocurrency contract trading and forex trading looks similar in many ways , their approach and concepts differes in many ways.

In this article I will share my years of experience tips on contract trading. 

The question still remains, What is cryptocurrency contract trading? 

Contract trading is a strategic trading whereby investors are allowed to open trades in any direction of the cryptocurrency securities they want,  these investors make profit based on the settled price difference between the opening and closing trading prices of the cryptocurrency without actually holding the cryptocurrency asset.

With these method investors tend to make more profit faster than when they actually hold the asset, investors are also hedged from the risk of possible devaluation of the cryptocurrency.

major reasons why many traders lose money in cryptocurrency contract trading; 

- Choosing the right broker. 

- Not Understanding some of the terms when it comes to contract trading. 

-Lack of discipline ( Risk-Reward ratio). 

- Not being updated on the happeneings in the crypro word. 

-Wrong use of indicators/trading techniques. 

Let's now breakdown the above points;

(1)  CHOOSING THE RIGHT BROKER;

This is the most important factor that determines whether or not one will profit from cryptocurrency  contract trading.

Who is a Broker?

A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange.

As of now there are more than 500+different  brokers in the world, most of these brokers are profit oriented, they don’t care about their users (investors).

Only few brokers like Bityard actually care and always have their users at heart.  

Personally I recommend Bityard trading platform to people and here is why;

Regulation;  Bityard stands out as one of the best platform that is highly regulated and  is compliant to international laws. 

This virtually means that there is no form of hidden activities in the background.

Bityard is listed as one of the trading platform that is allowed in USA.

Easy to use trading interface; The trading interface on Bityard is so far the Best I have come across.  Good trading interface is very important because it ensures that users can easily navigate in and out of the trading platform with ease.

Bityard makes use of the best trading interface that is lag-free and easily understandable.

-Transaction fees;  This is where most malicious platforms steal from their users, Bityard charges the lowest transaction fee of 0.05% this is far less compared to the standard fee of 0.09-2.8%, some platform even charge as high as 3%.

- Fast responding customer services;   the maximum respond time of the customer service on Bityard is 30secs; this is actually the best I have seen so far. 

Some platform keeps you stranded with a Bot that keeps on repeating un-relating questions and answers for you.

Trading chart; Evaluation of charts helps traders to determine whether or not they should enter a trade.  

Bityard incorporated into their trading platform the best trading chart “Trading View”. Traders now have many resourceful indicators at their disposal; this virtually increases wining chances by 40%. 

-Fast deposit and withdrawal; whereas most trading platforms offer a very fast depositing means only few like Bityard offers a fast withdrawal means as well. Withdrawal of profit from Bityard takes less than 5 minutes to be completed.

-Fund security; Bityard has many security measures in place such as; The use of cold wallet storage devices (this reduces the risk of hacking down to 0%), regular site maintenance to detect any malicious activities, use of the best secured security technology.

-Instant execution of orders at the best market price; Market orders are executed with the speed of light, this is very important as it ensures that orders by traders are filled at the best current market price

Active social media outlet; Bityard has a very active telegram, facebook, twitter, likend, medium, blog, etc.the essence of all this is to have a means of keeping the public updated about the various activities on Bityard.  

Latest activities are pinned on this groups for all to see.

Healthy competions;  Bityard is well known for its numerous incentives programs such as; The  $1000 worth of Ethereum writing competition on Publis0x, the $7,777 predict and win game on telegram, The $ activity on youtube, 

The Mining program on Bityard, The $258 welcome bonus n Bityard, etc.

-Trading services; As of now Bityard offers Contract trading, spot exchange and copy trading services for both cryptocurrencies and Derivatives. 

This gives investors  a variety of options, they can decide to contract- trade, buy/sell cryptos or allow others trade for them through the copy trade.

Tradable pairs; Bityard offers  more than 30 tradable pairs. There include;

Cryptocurrencies contract trading pairs supported by Bityard includes;

Bitcoin (BTC/USDT), Ethereum(ETH/USDT), Litecoin (LTC/USDT), Ripple(XRP/USDT), Dash (DASH/USDT), BitcoinCash (BCH/USDT), Chainlink (LINK/USDT), Ethereum Classic (ETC/USDT), Tron(TRX/USDT), Cardano(ADA/USDT), EOS(EOS/USDT), Cosmo Atom (ATOM/USDT), Polkadot (DOT/USDT), Kyber Network(KNC/USDT), Uniswap (UNI/USDT), Stellar Lumens (XLM/USDT), Ox (ZRX/USDT), Tezos (XTZ/USD), Basic Attention Token(BAT/USDT).

These and many more is why Bityard is highly recommended when it comes to cryptocurrency trading.

(2) NOT UNDERSTANDING SOME OF THE TRADING TERMS;

The first step to cryptocurrency trading is, understanding the terms used. Some of these terms are;

Leverage

Stop loss/take profit

Order

Buy or Long

Sell or Short

Buy /sell at limit

Buy/sell at market price, etc.

Familiarizing with these terms increases you chances of winning by 20%. 

The world leading trading platform Bityard offers tutorial videos about trading on youtube check it out here.

It is advisable to practice first of all using the Demo mode on Bityard, To register click here 

(3) LACK OF DISCIPLINE (THE RISK-REWARD RATIO)

Traders who make use of the Risk-Reward ratio technique tend to profit more than those who don’t. The Risk-Reward Ratio (RRR) entails knowing the percentage of your trading capital you want to use for trading, Normally I recommend 2% of your capital or 1:2 RRR.

The 1:2RRR means that for every $1 you use for trading are expected to gain $2. This particular method has been proven to be very effective and also minimizes excessive loss.

NB; You MUST at all time put your stop loss and take profit orders as these forms the core Basics of the Risk-Reward Ratio.

The Risk-Reward Ratio increases win by 50%.

NB; the stop loss and take profit orders can be found on Bityard.

(4) NOT BEING UPDATED ABOUT THE HAPPENENINGS IN THE CRYPTO WORLD;

When it comes to cryptocurrency trading no one is an island, it is advisable to always stay updated on the latest news in crypto world. 

For instance; a trader who sold (short) the BTCUSDT pair without know that Elon Musk (the world richest man as of now) invested $1.5B in it stands at a  greater risk than a trader who buys(Long) the pair after reading the news.

Being updated about the crypto world is referred to as Fundamental analysis and this to greater extent determines the trend of a cryptocurrency. This increases win rate by 40%

To stay update click here;

(5) WORNG USE OF INDICATORS;

The correct use of trading indicators is referred to as Technical Analysis, this is one of the basics of cryptocurrency contract trading.

Bityard offers the best indicators through the incorporation of the Trading View chart into its platform, 

Traders can now chose the suitable indicators they want.

Indicators help in determining; the current trend of a cryptocurrency, whether or not there is a potential trend reversal, whether a cryptocurrency is over bought or over sold (sold), etc.

Some of the major indicators include;

Moving Average (MA)

Bollinger Band (BB)

Stochastic

RSI

MACD, etc.

Correct use of indicators increases win rate by 60-80%. Our next article on contract trading 101 (Advanced) we will describe in details some of these major indicators and how to use them.

SUMMARY;

The major aim of anyone who ventures into cryptocurrency trading is to make profit, this article tackles some of the reason while many traders failed at cryptocurrency contract trading.

The most important reason being CHOOSING THE WRONG BROKER, this goes a long way in determining the winning rate of traders.

Bityard, the world leading trading platform has satisfied all the requirements need for a good broker.

Bityard is highly regulated and is also compliant to international laws, Bityard has more than 150 countries at its reach.

When it comes to cryptocurrency contract trading, Bityard has changed the concept and mindset of “THE HOUSE ALWAYS WINS” through the various services they offer.

To register on Bityard click here..