Cryptocurrencies are digital money that can be used for buying goods, booking travel tours, apartments, paying for different services and programs on the Internet, etc. However, cryptos are more often used for trading and investments. For example, you can become an early investor of an up-and-coming crypto project and get some of its coins, which will later boost and bring you a fortune. Or another option is you can use crypto assets for trading and receive income daily.
The high volatility of cryptocurrency rates enables enormous earning opportunities for traders. Crypto prices may change many times a day and even every minute. It allows making money on the price difference, and there are some popular strategies for it:
- Arbitrage trading – allows to receive a profit from crypto price differences on various crypto platforms. For example, you buy ETH on one exchange at a lower rate, then transfer it to another exchange where the ETH rate is higher, and then sell those coins.
- Scalping – taking advantage of cryptocurrency exchange rates changes in a 15 – 30 min timeframe and receiving a little profit after each deal.
- Day trading – making a profit from tiny market fluctuations many times a day in a one-day framework.
- Swing trading – takes a more extensive period (one day to a couple of weeks).
- Position trading – investing in the long term; allows to avoid impulse decisions and gives enough time to think about the next step.
Traders use these strategies together with trading bots – automated programs that help track cryptocurrency rates and react to their fluctuations instantly, opening and closing trading positions on a crypto exchange.
What Affects Crypto Prices?
There are several factors that impact cryptocurrency exchange rates. We will list some of them, so the rate of cryptocurrency depends on:
- overall market situation and investors’ and users’ sentiment;
- global economy;
- demand and supply and other crypto assets trying to compete;
- media hype and news background.
On the WhiteBIT crypto platform, you will find up-to-date crypto rates and an extensive list of digital assets for trading and investment. The exchange charges a low fee for all transactions – 0,10%.