How do I trade cryptocurrencies during quarantine?
Depending on the country from which you visit us, our readers can quarantine for several days or even weeks. As we have said several times here on CryptoTrend, however, we cannot allow the quarantine to be an excuse for inactivity. That is why today we dedicated our article on things related to cryptocurrencies during quarantine and dealing with these assets.
Why trade cryptocurrencies?
Trading is not an unknown concept for the crypto world. In fact, the majority of people who currently own cryptocurrencies are likely to have entered the crypto ecosystem as traders. You want to make a profit by selling and buying these assets.
And the logic of cryptocurrency trading is no different from that of virtually any economic activity. So try to buy the product (in this case the cryptocurrency) at the lowest possible price and sell it as expensive as possible. In this way, a profit can be made thanks to the price difference.
Of course, this is not the whole story, because it is easier to say in the market that profits from trading cryptocurrencies are made than to make them. We will be confronted with a multitude of data, participants and financial products.
It is therefore necessary to put our strategy in order and choose an investment platform that we feel comfortable with.
Basic and technical analysis
The first thing we need to do when we have decided to use our quarantine time to trade cryptocurrencies is to define which strategy we will use. Since we are in our homes during the coronavirus crisis, we have no excuse to miss important dates for our investments.
It is therefore important that we know how to use the tools of technical and fundamental analysis correctly. Especially at a time of such financial volatility when the least news or pressure is enough to completely change the trend in the cryptocurrency market.
So you should know absolutely all events that can affect cryptocurrencies. From government implemented policies, recessions, company closings, stock market slumps, Clashes international and in short every event with the potential to influence the market.
We have to combine this with a suitable technical analysis. Knowledge of the most important data of the crypto market, the liquidity, the resistance points, the movements of the whales, the statistical projections and all numerical elements that can serve your strategy.
There are no excuses to put this element aside, because if you are not good at financial mathematics, we constantly publish technical market analyzes here at CriptoTendencia.
Choose a platform where you feel comfortable
The second important element so that you can trade cryptocurrencies safely is choosing an investment platform that you feel comfortable with. Ultimately, the broker you are working with will be crucial in order for you to make a profit.
To select it, you have to consider a whole range of elements. Based on the minimum deposit required for commissioning, the accepted payment methods, the financial products they offer, the commissions they charge, their technical support, the training material they provide and their leverage.
Fortunately, here at CryptoTrend, we posted reviews of the major brokers in the crypto market. So you will have to search a lot for a broker that meets your requirements.
However, we recommend that you do your own research, get to know more brokers and investment platforms, and make your own decision during this quarantine.