In this article, we will consider the practical aspects of trading on Binance, a cryptocurrency exchange that currently has a well-deserved top-notch reputation. We will consider such aspects of trading as the initial amount of the deposit, trading in the short, medium and long term, as well as Take Profit and Stop Loss tools, including trailing and Binance trading signals.
Starting deposit: how much to start bidding with?
The main rule of a novice trader is: start a deposit on a deposit that is not afraid to lose. The recommended deposit amount, which will allow you to conduct active trading and not to commit major risks, is on average $400.
With the accumulation of experience, this bar can be raised to $2000. Such turnovers are quite sufficient for a novice market player and allow you to extract some profit from operations.
Risk and speed versus confidence and low pace
Binance Exchange is characterized by some features that predetermine the strategies of traders registered on it. Fiat turnover at Binance is not provided – but this problem is not difficult to solve if you use third-party services.
Margin trading on this exchange is also absent, therefore it is not attractive to traders who prefer short positions or leverage transactions.
Margin trading: what is it?
Trading of this type involves borrowing funds. The marketplace either independently allocates a certain amount of funds on bail to you, or it is calculated from the leverage you choose. If the leverage is x10, this means the following: with a deposit of $ 100, the limit for transactions will be $ 1000 for you. This opportunity is used to their advantage by those who win by reducing the market by opening short positions (also known as short).
Lack of margin trading on Binance
This type of trading may appear on the exchange in the future. Today, on the site in a bear market, you can use pull-offs or short bots. But first, you need to choose a strategy for your behavior on the exchange.
Patterns of trading behavior
Cryptocurrencies are traded in the short, medium or long term. Long-term strategies are more correctly called investment rather than trading.
This strategy assumes that the trader equips his portfolio with the most promising coins (for example, bitcoin, ether, ripple and something else). Re-purchase is made when the market falls by 25% or more, and so on every time. This will allow for a systematic lowering of the breakeven point, and capital growth will occur every time the market turns into a bullish trend. This strategy is designed for a period of 3 to 5 years.
In the short and medium-term, you can trade both top cryptocurrencies and mid-altar altos. To do this, use the means of technical analysis and monitor the forecasts of experts. You can familiarize yourself with the basics of technical analysis using classic works:
In fact, of course, one theory will not be enough, and everyone opens the path to profitable trading only through many mistakes made in practice.
This method assumes that the beginner simply copies the market behavior of an experienced trader. However, there are too many players on the cryptocurrency market who, without being competent enough, still take other people’s funds in trust. Perhaps, handling their own finances, these traders really remain in the black.
But the responsibility for other people’s money gives an additional emotional burden, due to which the probability of making a mistake increases. In addition, when copying signals and transactions both at the entrance and at the exit, there is a possibility of technical overlays.
How to trade cryptocurrency on Binance?
How to buy coins
Suppose you want to buy bitcoin. Its value will be displayed on the chart. To buy BTC, you must first replenish the balance and deposit USDT on it.
Then you should fill in the buy order, setting the indicator to 100%. Thus, you inform the system that you intend to spend the full amount of USDT in full on the acquisition of Satoshi.
The system will automatically put you in the empty field of the current price of the cryptocurrency. If desired, this figure can be changed. Whatever numbers you put there, the application will be displayed in the appropriate place in the so-called “glass”, that is, a list of orders.
“Glass” is located in the trading terminal on the left. Below are the orders to buy, above – to sell. Their movement is carried out in real-time. Orders are ranked depending on the buy or sell rate indicated by their creator. If you specify an anti-realistic price, your order will remain at the end of the list and will not be closed until all higher orders with more favorable offers are executed. If you intend to close the deal as soon as possible, indicate the price as close as possible to the market.