Like liquidity, trading volume is also an imperative metric for the success of an exchange. It is basically a measure of the amount of a cryptocurrency that has been traded in the last 24 hours. From volume, users can infer the movements and direction of a cryptocurrency. An asset with frequent heavy movements won’t gain traction even if it has a high trading volume. Conversely, if a crypto has less volume but experiences heavy trading in the last 24 hours, it signifies that there is some support behind the transactions of this currency.
Though trading volume is a crucial parameter in the crypto sphere, there are ample factors that can impact this parameter impeccably. Some of the key factors are:
Proper regulations are vital for a cryptocurrency to make a statement in the market. Different nations have different perceptions of digital assets. While some have taken necessary steps to regulate them, others have brought forth stricter regulations or forged ahead to ban their use. The decisions made by the governments regarding the regulation of the cryptocurrencies impact greatly on their trading. If regulations support the digital currencies, their prices tend to escalate and trading volume experiences an elevation. However, if strict regulations are introduced or their trading is banned, their prices drop, leading to a decline in the trading volume.
The value and trading volume of a cryptocurrency is determined by its usability. A digital currency that has the potential to solve real-world problems are deemed to have higher value and consequently, shines in the market. For example, Bitcoin, the founding father of the cryptocurrencies, is a solution of the double-spending problem, a barrier, technocrats had been striving to overcome since two decades by making digital money a reality. Bitcoin adopted a peer-to-peer decentralized timestamp server to create a computational proof of the sequential transactions to overcome this issue. There are many other reasons behind the more usability of Bitcoin, which in turn, has increased its market price as well as trading volume. Besides, as per the Joseph Oreste perspective, who is the founder and CEO of Qupon, regulations and usability are the major factors to foster the trading volume of the digital assets in a cryptocoin exchange.
The supply and demand of cryptocurrencies also immensely impact their trading volume on a digital asset exchange platform. If a cryptocurrency is in high supply but low demand, its value is more likely to dwindle. Similarly, if it is in high demand but low supply, its value will increase. This is especially applicable for Bitcoin whose trading volume is strongly linked with its demand and supply.
These are the key factors that can affect the trading volume of the cryptocurrency in the exchange. So, always make sure to list the assets in your online coin trading platform that are completely regulated or have already disrupted the crypto market.
Liquidity is described as the potential of cryptocurrencies to be converted into fiat currency or any other coin with no compromise on their value. It is deemed vital for a cryptocurrency exchange as it signifies a stable market where investors and traders can trade smoothly, quickly and conveniently. This is why most businesses reinforce their trading platform with robust features that can foster its liquidity and help them shine in the market as the best crypto exchange.
Advantages of high liquidity:
Better and fair crypto prices
A host of traders in the market can contribute to the equilibrium price of the cryptocurrencies. For instance, high trading activities in a robust and feature-rich exchange ensure that buyers could bid at high prices and sellers could sell their assets at competitive prices. This creates stability in the price of the digital assets, which is beneficial for both the buyers and the sellers.
High stability in the market
High liquidity leads to high stability and invulnerability to large fluctuations in the market due to large trades. For instance, investors having a great deal of money can notably influence or manipulate the prices in the illiquid market with a little activity. A single trade order placed by them can bring a lot a variation in the crypto prices, which may fuel volatility in the crypto market. On the contrary, a plethora of orders placed by a large number of traders in the liquid market can effectively maintain crypto price stability and mitigate the volatility.
Fast trading process
A liquid market facilitates and accelerates the execution process of crypto trading. With a large number of traders and investors, the trade orders are fulfilled post-haste. Also, the trades can easily be entered and exited which may be challenging in the fast-paced crypto market.
Accurate technical analysis
Technical analysis is basically defined as the historical market prices of digital assets and the use of this data to envisage the crypto prices with the help of technical indicators and chart patterns. Although many experts do not believe in the accuracy of technical analysis, it is a widely-adopted technique to understand the general market and trading. The liquid market has a relatively more advanced and precise formation of price and charting, which significantly enhances data accuracy.
How market makers help in improving liquidity
A market maker or liquidity provider plays a vital role in developing valuable digital currency trading platforms and setting up efficient market mechanisms. It can be a financial institution or an individual that quotes both a buy and a sell price in a financial instrument. Besides, market makers render liquidity enough to lessen price volatility and allow traders to trade their assets at affordable prices.
Market makers benefit traders and investors by ensuring:
Quick order processing
A market maker implements the best strategies to ensure that a buyer matches with a best seller and vice-versa. When a buyer places an order for a certain currency, the market maker casts around for a seller of the same currency to instantly match the order and minimize the delays.
Marker makers make certain that the spreads are stabilized in line with its role to provide and enhance market liquidity. They keep the crypto prices at a fixed and fair level to offer a well-organized entry point for traders.
Market makers enhance the trading volume as well as user count of a cryptocoin exchange. It can further boost the confidence of investors in dealing with the crypto market.
At one fell swoop, liquidity is essential for crypto trading. The higher the liquidity, the more beneficial it is for the exchange as well as the market participants.
Cryptocurrency has made a statement in the crypto market and so is its trading. With such volatility associated with it, there is a high probability of gaining profits. However, without implementing optimal strategies, you might lose more than you gain. This is why it is imperative to play safe and follow below-written crypto trading rules to mitigate the errors and proliferate your profits.
So, let’s dive in.
Only invest money that you can afford to lose
Many investors take loans to invest in a cryptocurrency which might be beneficial for few, but not for everyone. Crypto market is highly volatile, and it can anytime turn you from zero to hero and vice-versa. Also, the decentralization of cryptocurrency is susceptible to many factors like government regulations, hacks and so on. So, we suggest you to never go into debt and invest money that you can afford to lose.
Trade on a reliable exchange
Trade on a reliable digital asset exchange platform having high liquidity and trading volume along with a powerful trading engine. Also, ensure that it is underpinned with robust security features so as to eliminate the users’ apprehensions of losing the stored coin. Some exchanges like ZedXe have partnered with custodial service provider named BitGo to add an extra level of security to the funds of their users.
Diversification is the key to success
Multiple coins surged by 100x and 1000x in the year 2017. Such elevation can easily attract the interest of a novice investor and tempt them to put all their eggs in one basket.
Currently, the crypto market has over 1500 cryptocurrencies and you can gain the most out of this market by leveraging diversification technique. It is always a good idea to invest in 3-5 coins to minimize risk and maximize profit. To begin with, you can invest a little amount in bitcoins so that you can escalate the BTC rally and reduce loss while the value of altcoin goes down.
Take profits at regular intervals
In the crypto market, you can easily find a coin increasing by 20-30% in a span of 2-3 hours. In such a scenario, some investors get greedy and wait for more elevation due to which, they miss out on apparent profit. No matter what your goal is, you must reap the profits at regular intervals. This habit can help you eradicate the pain of losing a lot of profit when the price of the coin again plunges drastically.
Do proper research prior to investing
It is common to see newbie investors invest in the hyped coins and then repent. Also, there are a plethora of Initial Coin offerings and Ponzi schemes out there that only aim to befool the investors and steal their money. By meticulously researching the market trends and understanding the momentum of the coin you’re investing in, you can invest in the right coin on the right time and also take responsibility for your investment.
If you’re into day trading, it is imperative for you to set a stop-loss. It can help you mitigate losses. Many cryptocurrencies are not good for long-term trading and must be traded with caution. Stop-loss allows you to automate a trigger when the coin is sold and also replace that coin with any other beneficial coin if needed.
Crypto trading is quite a simple task. All you need to do is understand the market, TA, coin you’re investing in and trade volume for that particular coin, and find the best site to buy and sell bitcoin or altcoin. Besides, these six rules will also keep your float for the long-term and help you to trade efficiently.
The automated crypto trading process is executed by a trading bot, which is based on a specific set of mathematical and statistical rules. These rules are generally applied to fluctuations in price and volume of crypto pairs and are devised as per the technical analysis. Automated trading bots place the trade orders on behalf of the traders and enable them to execute more efficient trading without having to stay acquainted with the market trends at all times.
The algorithm of a trading bot examines the market to unearth the best trading opportunities according to the pre-defined or pre-programmed trading rules. All you have to do is choose the best site to buy and sell bitcoins having the ability to generate any orders for protective stop losses, trailing stops and profit targets as soon as the trade is entered.
There are ample benefits of having a trading bot to monitor the market actions such as orders, volume, price and time, and execute the trades. Some of them are listed below:
Ability to backtest : Backtesting implements pre-programmed rules to determine its profitability and risk. All these rules should be very-well defines, with no room for interpretation, while designing the best coin exchange for automated crypto trading. The traders can test these rules on historical market data before putting their money in live trading. Meticulous backtesting offers helpful statistics to evaluate and finetune a trading idea, and determine the system’s expectancy – the average amount a trader can expect to win or lose per unit of risk.
Improve order entry speed : Since trading bots respond quickly to changing market conditions, the automated system generates orders, including protective stop losses & profit targets as soon as the trading rules or criteria are met. Getting in and out of a trade a few seconds earlier can bring forth a huge difference in the trade’s outcome. The markets can change swiftly and it is dismaying to have a trade reach the profit target and then blow past a stop-loss level, and such concerns can be radically mitigated by automated trading.
Achieve consistency : Planning a trade and executing it accordingly is one of the biggest obstacles in trading. Even if your trading plan is amazing and has the potential to offer huge profits, overlooking the system’s rules can result in changing the system’s expectancy and lowering your profitability.
Preserve discipline : Due to the automatic execution of the trades as per the specified rules, discipline is preserved even in volatile markets. Discipline often dissipates when emotional factors such as fear of taking a loss, or the desire of obtaining a little more profit involved in a trade. The automated crypto trading system ensures the elimination of such emotions and maintenance of discipline to process the trade as per the plan. Besides, “Pilot Error” is mitigated. For example, an order to buy 100 coins will be more accurately entered than that of an order to sell 1,000 coins.
Diversify trading : Automated trading allows users to trade numerous accounts or various strategies at once. This has the potential to spread risk over a host of cryptocurrencies while creating a hedge against losing positions. The trading bot successfully executes the processes in milliseconds which can be very challenging for a human to accomplish. It can also scan trading opportunities across a variety of markets, generate orders and monitor trades with no point of error or failure.
In a nutshell
Automated crypto trading can yield ample merits when they are configured and backtested in a proper manner. But before embarking on a trade, it is crucial to plan a strategy and figure out how it will work in a bull, bear and sideways market in order to gain high profits.
ZedXe is enriching its portfolio of services by integrating “Fund Investment” in its crypto coin exchangeplatform. Now, you can invest and trade at one elevator. This investment plan is specially designed for ZedXe’s online traders who already have Bitcoins in their trading wallet. In the current phase, we are allowing BTC and in the coming phase, we will also add other cryptocurrencies as well (ETH, LTC, ZFL, TUSD, and more).
How to invest BTC in ZedXe fund investment?
As an incubator and leading advocate of the crypto coin trading platform, ZedXe is committed to providing easy-to-use, profitable, and beguiling way to make the most out of your BTC.
There are two ways via which you can invest in ZedXe fund investment feature:
- Move Funds to Investment Wallet from Trading Wallet
- Move Funds to Trading Wallet from Investment Wallet
Both of the transactions contains 2 Factor Authentication which makes it secure.
Once you have moved your BTC to the respective wallet, ZedXe holds your coins and allow you to select your plan to enjoy daily ROI.
ZedXe Fund Investments Plan:
We have a plan to suit every pocket. We offer great returns with 4 investment plans. We have reserved insurance funds that will guarantee your initial deposit. With our program, we offer you a continuous daily and computing profits that will transferred automatically to your wallet. Let’s have a look!
There are four types of plans which we offer, Open, 6 Months, 12 Months, and 24 Months. There will be a minimum investment amount, lock in period and annual ROI as per the plan (6%, 9%, 12%, and 24%). User can do prematurity withdrawal or maturity withdrawal for a particular plan.
In case, you will withdraw your fund before the maturity period, you will get some deduction on ROI.
Another option is “Ledger” in which you can check your transaction history.
Register to ZedXe and get assured ROI based on your chosen investment plan.
Cryptocurrency investments paving the way for profit-making opportunities have encouraged crypto enthusiasts across the globe to put their money into these digital assets. The cryptocoin market is not only dominated by a myriad of currencies to choose from, but it also offers multiple ways to buy these currencies.
Using debit card to buy cryptocurrency is gaining fast traction and is becoming a widely adopted solution. It is perfect for both first-time buyers and seasoned crypto investors, being a hassle-free and easy option.
ZedXe enables its users to buy Bitcoin online with debit card, so you can leverage the ease and speed of transactions provided by electronic cards. The entire process is secure and streamlined to deliver great trading experience to users.
Easy Steps to Get Started
Sign-up for free at ZedXe
Create your ZedXe user account for free by providing necessary details. Log in to your account upon successful verification of your account. Head over to the “Wallets” section on the ZedXe toolbar and choose “Buy with debit card” option to proceed further.
Place your order
Input the amount (in USD) that you want to invest. Our platform automatically calculates the number of Bitcoins that can be bought in exchange and vice versa. You can view complete order details with total payable amount and confirm to proceed. You will be redirected to PayOp – a secure and trusted third-party payment gateway. This is where the transaction will be processed and payable amount will be transferred to merchant’s account.
Get Bitcoin instantly
The merchant, after receiving the payment transfers your Bitcoins to your ZedXe Bitcoin wallet address.
A separate, well-structured “Deposit History” section for both users and Admin provides complete visibility and access to transaction history.
Why Choose ZedXe to Buy Bitcoin Using Debit Card?
ZedXe ensures the following while navigating users’ Bitcoin buying journey with debit card.
ZedXe upholds the highest standards of integrity and orchestrates the entire process with complete honesty. The platform automatically calculates the transaction fee against the amount or volume of Bitcoin to be. The transaction is processed after you confirm the price.
ZedXe leverages state-of-the-art security solutions to mitigate risk and drive the safest transactions possible. We adhere to geography-based compliance and AML standards to fulfill regulatory demands and build a trustworthy ecosystem.
ZedXe harnesses PayOp – a third-party payment gateway to accelerate transactions with minimum latency. PayOp is underpinned by industry leading security features like user authentication and authorization to allow legitimate transactions.
A strong customer support team provides dedicated assistance to navigate you through the process to buy Bitcoin online with debit card. ZedXe believes in building and maintaining long-term relationships with our customers and creating a strong community around digital currencies.
To enjoy these benefits and embrace a convenient solution to buy Bitcoins using debit card, sign-up for ZedXe exchange. We steer your journey ensuring speed, security and ease while putting you in complete control of your transactions.