Depending on the country from which you visit us, our readers may take several days or even weeks of quarantine. However, as we have already said several times here on CryptoTrend, we cannot allow quarantine to be an excuse for inactivity. So we dedicated our article today about things to do with cryptocurrencies during quarantine, trading with these assets.
Why trade with cryptocurrencies?
Trading is not an unknown concept for the crypto world. In fact, it is likely that the majority of people who currently own cryptocurrencies have entered the crypto ecosystem as traders. Looking to generate profit with the sale and purchase of these assets.
And, the logic of cryptocurrency trading is no different from that of practically any economic activity. That is, try to acquire the product (in this case the cryptocurrency) at the lowest possible price, and sell it as expensive as we can. So that, in this way, a profit can be obtained thanks to the price differential.
Of course, this is not the whole story, because in the market it is easier to say that profits will be obtained from trading with cryptocurrencies, than to obtain them. Since, in it we will face a multitude of data, participants and financial products.
Therefore, it is necessary to put our strategy in order and choose an investment platform with which we feel comfortable.
Fundamental and technical analysis
The first thing we must do, if we have decided to use our quarantine time to trade with cryptocurrencies, is to define what strategy we will apply. Since, being in our houses during the Coronavirus crisis, we have no excuse to miss important data for our investments.
Therefore, it is important that we know how to correctly use the tools of technical and fundamental analysis. Especially in a time of such financial volatility, when the slightest news or pressure is enough to totally alter the trend in the cryptocurrency market.
So, you should be aware of absolutely all events that may affect cryptocurrencies. From policies implemented by governments, recessions, company closings, stock market falls, international confrontations and, in short, any event with the potential to influence the market.
We must combine this with a technical analysis to match. Knowing the main data of the crypto market, liquidity, resistance points, movements made by whales, statistical projections and all the numerical elements that can serve your strategy.
There are no excuses to leave this element aside, because if you are not good with financial mathematics, here at CriptoTendencia we are constantly publishing technical analyzes of the market.
Choose a platform with which you feel comfortable
The second important element, so that you can safely trade cryptocurrencies, is to choose an investment platform with which you feel comfortable. Well, at the end of the day, the broker you work with will be decisive so you can make a profit.
To choose it, you must consider a whole series of elements. From the minimum deposit required to start operating, the accepted payment methods, the financial products they offer, the commissions they charge, their technical support, the educational material they provide and their leverage.
Luckily, here at CryptoTrend we have published reviews of the most important brokers in the crypto market. So you will have a lot of your search for a broker that suits your needs.
However, we encourage you to do your own research, get to know more brokers and investment platforms, and make your own decision during this quarantine.