CEX, Isolated Margin, Limit order

Cryptocurrency Trading 101: To understand key concepts

Navigating the complex landscape of opportunities and strategies in terms of cryptocurrencies can also be scary for the widest merchants. In this article, we break down some key concepts in the cryptocurrency trade that you need to know.

1. Cex (Krypto Exchange)

Crypto Exchange is a platform where users can buy, sell and trade cryptocurrencies. The two biggest replacements in the world are Coinbase and Binance. When selecting CEX, consider factors such as fees, liquidity, security features and customer service.

For beginners, we recommend starting to start with smaller platforms such as Gemini or Kraken that offer lower charges and a more user -friendly interface.

2. Separated margin

Isolated margin is a type of trading strategy that allows merchants to check their risk without using leveracks on the entire account. It works by keeping all the funds separately, reducing possible losses when the market moves against you.

For illustration purposes, we say that you use 10% of your account for trade. In isolated margin, you use only 1% of your account for trade, allowing you to leave 9% available for other transactions or emergency situations.

3. Restriction order

Limit order to determine the purchase or sale of a currency at a specific price based on the best quotes available on the market. Once it is placed, it can only be changed or deleted unless it is executed by another party.

Limit orders are useful if you want to buy a currency at a certain price and may not be able to do it within the range because of high demand or market volatility.

Example: Suppose you want to buy 1 BTC (Bitcoin) with $ 10,000. If the current market price is $ 15,000, the limit is determined by “1 BTC purchase of $ 12,500 or better”.

By understanding the key concepts in the cryptocurrency trade, you will be well prepared to navigate in the complex world of opportunities and strategies. Always remember to carefully assess the potential risks of each trade before placing an order.

Legal declaration: Krypto trade pose significant risks, including loss of major investments. Thorough research and understanding of your chosen strategy is essential before you use it in real trade.

protect protect your withdrawals