The only method to invest in Bitcoin Cash is to buy it and keep it for a long time, but you may also trade it utilizing broker platforms. With the former, the coins you purchase are ones you control. Even using your coins as collateral to get loans is possible on certain exchanges. You may perform transactions with a broker company without having to own BCH tokens. Instead, you can trade derivatives depending on the price of Bitcoin Cash itself.
Where to trade Bitcoin Cash
Bitcoin Cash (BCH) can be traded through online brokers and cryptocurrency exchanges. Online brokers offer derivatives linked to BCH’s value, while some brokers provide actual cryptocurrencies. Cryptocurrency exchanges also offer derivatives, including leverage of up to 100x, alongside traditional token trading. Notable exchanges include Bitmex, Huobi, Binance, and OKEx.
A step-by-step guide to trading Bitcoin Cash
There are many stages involved in dealing Bitcoin Cash:
Fundamental and technical analysis should be combined.
You can get a reasonably decent picture of the direction the market is heading from two frequent sources of information intake. Which are:
Fundamental analysis
Traders use this technique to determine an asset’s inherent worth. Whether Bitcoin Cash is cheap or overpriced is dependent on both internal and external variables. Network value, active addresses, the mining break-even ratio, roadmap accomplishments, and recent cryptocurrency news are some of these variables. These elements may be used by traders to create profitable trading plans.
Technical analysis
Utilizing price movement and volume information, this technique forecasts future market behavior. It is far more technical than fundamental analysis, as the name suggests. Technical analysis works on the premise that price changes are not random. Traders can see patterns over time with careful observation. Bollinger Bands (BB), the Relative Strength Index (RSI), and moving averages are examples of common technical analysis indicators. Combining these two approaches to forecast the course that the price of Bitcoin Cash will follow is the secret to profitable dealing.
Select a trading plan
You undoubtedly want to benefit from trading Bitcoin Cash, and there are several methods to do so. You may employ a variety of trading tactics. To name a few:
Day trading
In day trading, price changes that happen during the day are exploited. Over many hours, day traders initiate and terminate several positions. The objective is to execute as many deals as you can and close them off before the day is out.
Scalping
Scalping is similar to day trading but operates on a much shorter time frame. Scalpers execute several transactions in a matter of seconds or minutes as opposed to waiting for hours to liquidate positions. By the end of the day, the little gains you generate with this method might mount up to a sizable sum.
Swing trading
Another tactic is monitoring the market for momentary price swings. Swing trading, in contrast to day trading and scalping, necessitates waiting many days or even weeks. The idea is to profit from the market’s self-correcting “swing.”
HODL
The tactic whose name became a meme due to a mistake. Holding onto your BCH coins while expecting their value to rise over time (months or even years) is known as “hodling.” The idea is to sell at a time of intense demand and to purchase your coins back after a drop.
Trading trends
Profiting from either upward or negative market movements is a sound trading approach. Trading trends entail making investment choices based on a technical assessment of the momentum of Bitcoin Cash. Although the risk-to-reward ratio is greater, catching a trend properly may greatly boost your win rate.
Choose a platform that will meet your demands
The next stage is to choose a reliable trading platform on which to implement your trading techniques and apply your market forecasts. Choose between using a derivatives exchange or a broker platform. Although they provide comparable services, a broker is a more focused trading platform. Brokers provide huge volumes for lower rates and focus on experienced traders. Additionally, they comply with financial regulations. An excellent choice is a derivatives exchange since many of them allow for greater risk trading using leverage. Make sure the platform you choose is legally registered and compatible, regardless of the kind.
Create an account
The next step is to set up your account after choosing a suitable trading platform. A username, password, and email address are required as part of the customary process for account verification. You must go through the Know Your Customer (KYC) verification procedure once you validate your account. To stop fraud, theft, money laundering, and criminal behavior, the KYC procedure is necessary. A copy of your government-issued ID and proof of address is normally required. Some platforms could additionally request that you submit a photo to prove your identity or provide documentation of your income. You will be able to fund your trading account wallet after the verification procedure is finished. There should be a variety of deposit options accessible, including direct cryptocurrency transfers, PayPal, credit/debit card transfers, bank account transfers, and more.
Get ready for the trade
After funding your account, look at the trading possibilities available on the platform you’ve selected. There is a trading interface on every platform. Although they are all distinct, they all have something in common, such as trading graphs, deals that have already been completed, order books, and accessible options.
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