Home Crypto What is trade coin? Latest trading coin methods to make money.

What is trade coin? Latest trading coin methods to make money.

by fptware
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If you have heard or participated in trading a certain type of market before, such as Forex, stocks, gold, … then Trade coin is not too different from the other types of markets. on. The difference that you need to pay attention to is the classification of Bitcoin and Altcoins.

We can trade Bitcoin / USD, trade Altcoin / USD, trade Altcoin / Bitcoin, Altcoin / Altcoin. Choosing which pair to trade depends on what your starting capital is and your plan to increase the number of coins.

POPULAR TRADE COIN PAIRS

On the market there are many coin exchanges, each exchange lists different trading pairs of coin on that exchange’s market system. A trading pair consists of two coins, 1 standing and 1 second copper. We will use the second copper to buy the standing copper and selling the standing copper to the second one.

For example, trade coin pair ETH / BTC: use BTC to buy ETH and sell ETH to BTC. Or ZIL / ETH means using ETH to buy ZIL and sell ZIL to ETH.

TRADE COIN IN PAIRS OF COINS WITH STABLE COINS

This is the most popular and simple trade coin pair for new investors to enter the market. Trading pairs with these stablecoins are mostly supported by exchanges.
Why is trade coin using stable copper that is safer than other trading pairs? The reason is because the second unit in this trading pair is a stable coin (USDT, USDC, BUSD,…). This means that this coin is almost unchanged in price, so it would be much safer if it is a coin with large fluctuations in price.

For example, I use the ETH / USD trading pair and use 1000 $ to buy 1 ETH at $ 200, the next day the ETH price increases to 210, profit will be $ 50. But if I used the ETH / BTC trading pair at 0.014 BTC, the next day the ETH / BTC rate increased to 0.015 BTC, I wouldn’t make much profit if the BTC / USD dropped.

TRADE COIN IN PAIRS OF COIN WITH COIN

This is one of the trading coin pairs that requires you to have a little long-term trading experience to be able to log in and out properly. These trading pairs help you increase the number of coins you own faster than trading with stablecoins.

For example, with the ETH / BTC pair, you can buy Ethereum with Bitcoin or sell Ethereum to Bitcoin. To put it simply, we can not only use stable coins (USDT, USDC, BUSD, …) to buy other cryptocurrencies, but we can use one coin to buy one another coin.

However, in reality, not every coin can be traded with another coin, this depends on each coin exchange you choose to trade that supports that trading pair.
In a different sense, trading coin pairs are like replacing buying or selling a coin with stablecoins but replacing the stablecoin with another coin. The exchange rate of the trading pair will depend on the rate of the coin behind the stable coin.

For example, with the ETH / BTC trading pair, if the price of BTC / USDT rises sharply, surely the ETH / BTC rate will drop sharply. The explanation for this is very simple, the crowd seeing the price of BTC vs USDT is increasing strongly, it will tend to sell ETH to BTC to take advantage of the power of compounding that leads to the ETH / BTC exchange rate can decrease strong.

Conversely, if the BTC / USDT pair does not fluctuate much (sideways) or rise slightly, the ETH / BTC pair can completely bounce up, leading to the ETH / USDT pair will also rise very strongly. The essence of the problem is that either the crowd is seeing the BTC to USDT rate unchanged or the market is losing interest in the pair. Crowds pushed the price of the ETH / BTC pair to increase the amount of BTC after selling ETH out of BTC.

The essence of buying and selling altcoins using BTC is Bitcoin’s share of altcoins: Bitcoin Dominance. Trading coin pairs demonstrates the strength of the coin in front of the coin. For example: If ETH / BTC increases, ETH is dominant over BTC at a certain time.

OPTIMIZE TRADING VIA TRADING COIN IN PAIRS

Imagine you have Bitcoin and stable copper (USDT) and you want to own Litecoin virtual currency. Now consider the LTC / BTC trading pair, if Bitcoin is up 10% while the LTC / USD pair is unchanged, then that means you can buy more Litecoins if you trade the LTC / BTC pair.
Stable copper Litecoin buying power in the market remains the same, while Bitcoin is growing 10% more then you will be able to own 10% more Litecoin by using Bitcoin to buy. The value of the transaction does not differ in the moment it was made (because you own that Bitcoin increases in value like you own your stablecoin).

If you want to own lots of Litecoins and hope that Litecoin will increase in price in the future then this will be a compound profit for you.

Of course, trading coin pairs is also risky, imagine if you use Bitcoin to buy Litecoin. But after a while, Bitcoin increased by 11% and Litecoin only increased by 1% ??? That means you are at a loss if Litecoin profit taking is real money at that time.
In case the Litecoin value falls on both LTC / BTC and LTC / USD while the Bitcoin (BTC / USD) value is increasing, then we’d better keep Bitcoin the same, it seems to be better.

TRADE COIN FORMS

After identifying the trading coin pair, at this point you can choose either spot trading or trade coin using margin called margin trading.
If you are new and do not have much technical analysis skills, you should choose Spot. If you are confident in your ability and experience, you can absolutely use margin to maximize profits.

FREQUENTLY ASKED QUESTIONS WHEN TRADING COIN

Which trade coin of exchange is good?

There is no good exchange, but for subjective evaluation, I will arrange the following: Binance, Huobi, Okex, … These exchanges all support spot trading and trade coin using leverage. . Reputation and safety are important.

Where to buy USDT to trade coin?

You can use Remitano to buy USDT or buy Bitcoin.

Is Trade coin difficult?

Try to learn to improve knowledge every day, try to simplify everything

Hopefully, through my sharing, you can partly understand the nature of trading coin and make the best decisions.

 

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