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In range trading, you look for consistent highs and lows, also called resistance and support levels, in markets that don’t have a clear trend. There’s a thin line between being a smart, disciplined day trader and being a gambler, and you don’t want to cross it. The most important consideration is not allowing your data to be compromised, so the trading platform you choose should be as secure as possible. Check the type of data encryption the platform uses; this will give you an idea of how well your data will be protected as it is transferred over the internet. It’s far more consistent to set a Limit Sell order slightly below where you think the top is, to better guarantee you’ll lock in the profit you want from that asset.
👉 In addition, Nigerians must know what affects the spread and which strategies they can use to harness high and/or low spreads in the forex market. 👉 Overall, FBS is the best sign-up how to buy kin coin bonus broker with competitive spreads in Nigeria. FBS adds over 10,000 new accounts daily and in the 12 years FBS has been operating, the broker has proven to be trustworthy. 👉 AvaTradeGO provides the best trader interface along with functionality that will benefit Nigerian traders who are trading while on the move. 👉 Overall, AvaTrade is the best forex trading app with competitive spreads in Nigeria.
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Binance Coin (BNB)
Trading cryptocurrency has come a long way since the ‘wild west’ days of unregulated activity and crippling exchange hacks. Now that you understand the kind of risks you are most likely going to encounter, you should factor them every time you are about to make a trading decision. There are makers for both buy and sell orders, and consequently, there are takers for both buy and sell orders. An order book is the ledger on which available orders binance buy with fiat binance buy bitcoin cash with usd yet to be fulfilled are recorded. The stock market has been around for a long time now, and there is a bunch of literature on the topic.
Fortunately, you can use many different exchanges, platforms, and apps to purchase cryptocurrency. Peer-to-peer (P2P) marketplaces are decentralized exchanges where investors can buy and sell cryptocurrency using smart contracts. These platforms depend on smart contracts to make sure that transactions take place.
As a crypto day trader, you can avoid big losses by trading within your limits. While you need to risk making a profit, you should know how much you could risk and never invest more capital than you can afford to lose. Experts recommend a daily risk maximum of 1% to ensure traders don’t risk more than they can afford to lose. News trading involves using market news and events to make trading decisions. Traders use this strategy to capitalize on sudden price movements that occur as a result of news announcements.
Market Sessions Nigerians must trade for Narrow Spreads
Therefore, to juggle all their investments and trades, they need specific tools to be efficient while trading. It’s hard to talk about crypto trading without talking about risk management in cryptocurrency trading. Risk in crypto trading refers to the chance of an undesirable outcome happening. To better understand leverage, assume you enter a trade with 5x leverage. This means that your trade’s position size is 5 times the capital you staked from your own pocket (i.e., margin).
- I am an expert in brokerage safety, adept at spotting scam brokers in mere seconds.
- These often include assessing real-world adoption potential, reviewing technical specifications, studying the founders and developers, scanning community engagement, and evaluating competitors.
- The platform makes buying and trading cryptocurrencies simple, while also providing high levels of security and transparency.
- The cryptocurrency derivatives marketplace consists of financial instruments whose value is based on a virtual currency’s value.
- At FXTM, we offer derivative trading of cryptocurrency via Contract for Difference (CFD).
- For example, you can buy off a rejection from the MA when the price is above.
Bitcoin (BTC) / Tether (USDT) Trading
Bitcoin ATMs provide a straightforward way to purchase bitcoin using traditional payment methods like cash and bank cards. These machines frequently leverage two-factor authentication, which requires multiple steps to verify a user, to help ensure the security of transactions. In recent years, these payment apps have expanded their accepted payment options, allowing users to buy, sell, or hold cryptocurrencies like Bitcoin.
Day traders should also consider whether their preferred exchange allows them to send their assets off of the platform to crypto wallets of their choice. Gains on yield farms can be wildly inconsistent, and the rise of new tokens with super-high APY rates can often tempt new yield farmers into pools that quickly pump and dump. But many traders who are holding crypto funds long-term are finding staking and yield farms with more stable coins to be another tool in the toolbox for getting a return on their holdings. It usually involves holding cryptocurrency in an account and letting it collect interest and fees as those funds are committed to blockchain validators. When blockchain validators facilitate transactions, the fees generated go, in part, to stakeholders. If you’re planning to trade cryptocurrencies on a frequent basis, you should choose an exchange with low fees.
As a result, most traders prefer to use more objective methods, such as technical and fundamental analysis, to make trading decisions. Fundamental analysis involves analyzing the underlying factors that drive the value of a cryptocurrency. Unfortunately, the scheme was short-lived, and the price quickly plummeted to its pre-surge levels, leaving investors with significant losses. Investors should be cautious of sudden price movements resulting from market manipulation and conduct thorough research before investing in any cryptocurrency. 👉 Overall, IG is the best Volatility 75 / VIX 75 forex broker with competitive spreads in Nigeria. IG is one of the oldest brokers in the world that offers more than 18,000 financial instruments to Nigerians, including VIX.
Important Concepts in Cryptocurrency Trading
Traders who adopt this style of analysis will often look at social media trends, news, and other factors to determine when the market is experiencing fear or greed. Technical analysis involves using past price data and chart patterns to identify potential entry points. Traders who use technical analysis will often look for indicators like moving averages, support and resistance levels, and trading volume to identify potential buying opportunities. While risks remain, bigger cryptocurrencies (by market cap and trading volume) have generally demonstrated their resilience, unlike newer or smaller-cap coins. However, if the chance arises, consider rebalancing periodic profit-taking from major assets into promising newer projects with real-world utility. As with any particular asset or security, avoid heavily overweighting major cryptos relative to your overall investment portfolio size and risk tolerance.
Proper risk management and emotional control are crucial to avoid making impulsive decisions that could lead to losses. Bitcoin trading involves buying and selling Bitcoin on an exchange platform. There are multiple ways to trade Bitcoin, including through cryptocurrency exchanges and derivative financial instruments like Contracts for Difference an intro to git and github for beginners tutorial (CFDs).
As an Economics degree holder from the University of California Santa Barbara, he’s well versed in topics like cryptocurrency markets and taxation. 👉 When Nigerians use IG, they can choose a retail account that suits them best and employ any trading strategy that fits their style. 👉 For this kind of trading to be successful, you will need very narrow spreads and a lot of liquidity. Therefore, scalpers prefer to focus on big currency pairings, such as the EUR/USD, GBP/USD, and USD/JPY, because of their large liquidity and trading volume. 👉 Open a moderately financed real account and verify that the live trading spreads and prices match those in the demo account if everything appears in order.