Along with market capitalization and circulating supply, the volume is one of the most prominent metrics in the cryptocoin market. Trading volume generally can be seen as the bottom of vertical bars on price charts. Volume activity can be shown by comparing the height of those bars to each other. Since these charts are often specific for a single exchange, however, a trader can also visit different exchanges data aggregators, for instance CoinMarketCap to see the overall asset trading volume numbers, as every exchange have a different volume.
As per the recent survey conducted by ZedXe markets revealed that volume was an indicator of choice for 39 percent of respondents while the Relative Strength Index comes in the second number with 29% of the total vote.
What is a high trading volume?
Volume is a measure of how much of a financial given asset has been traded in a given time period, or how many assets have been brought or sold over a particular time. It is a powerful tool of crypto trading which is often overlooked because traders find it a simple indicator. Volume information can be found from anywhere, but only a few traders or investors know how to use such an indicator to increase their profit and reduce the risk.
When we talk about high trading volume, it means a significant money flow and interest in a given asset. When bitcoin trading volume goes up, it indicates that more people are trading asset, or people are investing in trading the asset. It can sometimes be used to measure the interest and attention.
Volume can sometimes use to give the hint toward a change in trend. Generally, divergence is mentioned in the case of the Relative Strength Index (RSI) and sometimes it can also apply on trading volume.
Dramatically Swings the Prices
When the volume is low, it can sometimes leave the market vulnerable to significant price moves. The reason behind this is due to thin order books. If the bitcoin’s daily trading volume is low, it means the order book is thin, lacking enough orders at the current price to satisfy a big seller/buyers. If a huge order comes through and buys or sells the entire asset within the close proximity then it can cause slippage, and price can react dramatically.
Volume becomes extremely crucial when speaking about altcoin trading. If a coin or token is not getting much volume, it can become challenging to scale or unload the substantial position, this is because buyers are very limited.
What are the different volume technical indicators?
The Chaiking Money Flow indicator is one of the interesting associated indicators which gauges the volume of money movement regarding specific time segments.
This is another imperative volume trading parameter that comes into play regarding the crypto space. This indicator helps to present the stream of the volume concerning price trend or movement.
To Sum Up
It is important to know that no indicator or parameter is up to the mark. False signals, fake-outs, or break-outs do occur. It can be helpful to use numerous time-frames into account, as well as finding congruence with more than one indicator. Traders should develop and learn what works best for their personal trading system. Today, trading in cryptocurrency is easier than ever, now you can buy crypto with debit card, credit card, or via other blockchain-based currency. But before starting the trading process, it is crucial to collect complete information about the specific coin or token.
Let’s start at the beginning.
You may have heard about numerous things about what a cryptocurrency is, but there are some non-technical traders too who are constantly looking for an easily understandable definition to gain maximum profit in the crypto coin trading. Fret not. Even, I was also in the same boat a few years back. So, instead of getting technical, here is the easiest way to understand cryptocurrency.
“Cryptocurrency- It is basic money on software platforms.”
Unlike traditional transactions, digital currency transfers are not handled by any intermediaries such as banks or financial institutes. Every time someone buys and sells bitcoins or any other digital currency, his/her payment is recorded on a digital ledger called blockchain. But, in order to keep your transaction safe and secure, you need to join the best site to buy and sell bitcoins.
We cannot deny the fact that the crypto market is highly volatile, but there are certain principles trades can utilize to maximize their chances of success. Let’s take a look at what you need to know about cryptocurrency trading.
- Trade with a reliable exchange
Use an exchange, not a broker. By doing this, you will save your hard earned money on fees. Find the best cryptocurrency trading exchange. Once you have joined a trading platform, you will get a secure wallet where you store an encrypted password that represents coins.
Instead of keeping your money in a single platform try to use distinct exchanges to keep secure your digital currencies. As crypto is a highly volatile market, so investing in the similar coins will maximize the trading risks. Trading requires research and tracking changes, and as there are a lot of cryptocurrencies- which means a lot of research.
To get successful in crypto coin trading do some useful research and tracking. For this, you can track the latest cryptocurrency news, ranking, key indicator daily, and read current blogs. You can even join the discussion threads on Reddit and Telegraph.
- Consider Laddering Your Crypto Coins
Instead of buying and selling everything in one chunk, set incremental buy and sell orders to buy when the prices of cryptocurrency go low and sell when the prices go high. The laddering process will help you to avoid mistiming the complex and volatile cryptocoin market.
- Cryptocurrency is a 24*7 Global Market
The crypto market never sleeps. Since you do, consider automating your investment strategies by using limit orders, stops, or APIs.
Note: The most important point to consider is do not trade with money that you cannot afford to lose.
So, this is all about how to trade efficiently on the crypto coin market. I hope that it covers all the important things that you may have to consider in crypto trading.
As we have stepped into 2019, lots of crypto experts have started to predict about the crypto coin trading trends and possibilities to watch out this year.
The last two years of cryptocurrency witnessed a tremendous growth and were successful years so far. We have experienced lots of changes, lots of regulations, a bunch of new crypto coins arrival, and most importantly, the remarkable success of ICOs. And now, Crypto Pandits predict that 2019 will be the year of immense growth and a year of action for crypto lovers.
And above all, the bitcoin prices are expected to increase up to 10 times i.e. around $100,000. Unbelievable, isn’t?
Alright, hope I have given you a brief intro about the upcoming crypto coin trading market trends and possibilities. Let’s delve into the main crypto coin marketing trends in 2019.
Increase in Trading Volume
One of the biggest trends that crypto pandits have predicted for the industry is increase in trading volume in the crypto market. Although the market is kind od bearish at the moment, crypto coin trading volume is expected to increase up to 50% this year. And the best part is, the crypto volume is likely to touch 10 percent of equity trade volume in America.
Acceptance of ETF (Exchange-traded funds)
There is a good news for traditional institutions and large investors. ETF will allow them to enter into the crypto world without significant risks. If this happens successfully, we need not worry about Ponzi schemes and bubbles as even the government bodies will use crypto.
Rise of Decentralized Exchange
Decentralized cryptocurrencies need an adequate market for trade. Although the marketplace is filled with lots of decentralized crypto exchanges, they are limited by poor usability and substantial development. Hopefully, in 2019 users will see the rise of decentralized systems, which means they can trade with their private wallets, without any involvement of intermediaries.
Adoption of STO
Today’s era is totally based on ICO mania. The marketplace is filled with numerous utility tokens launched by different startups to generate funds for their business venture. Almost anyone with a potential can set-up a company and can launch his/her own crypto token that can impress the geeks. This is why crypto pandits are expecting 2019 to be the year of security tokens. They represent the ownership of traditional assets such as bonds or equities. And the best part of these tokens is they efficiently connect the real world of classical entities to the unique crypto world.
Educating People About Crypto
Till date, only the minority of people know what is cryptocurrency and how to use them efficiently. There are some countries that blame crypto as an illegal and criminal invention, however, there are some official programmes already in the market which educate people on the subject of digital currencies, thereby debunking any myths that surround these digital currencies.
To Sum It Up
Considering that almost every cryptocurrency is volatile and the situation with regulation is yet to be stabilized, determining the most powerful and lasting trends is extremely a tough in this stage. While 2018 has been a year full of ups and downs for cryptocurrency market, majority predictions suggest that 2019 will a great year for the crypto market.
Cryptocurrency and blockchain technology have the potential to transform the financial market and they are recognized for providing unexpected approaches that may improve industries’ growth and productivity. Something new and innovative is introduced into the crypto market almost daily, therefore, it is imperative for every crypto investor to keep himself/herself updated with the latest market trends to reap the true benefits that crypto coin trading offers. .
The Venezuelan government released the official gazette No. 6,420 on January 7, 2019, as reported by local media. The gazette contains Decree No. 3,719 which states new tax payment rules for cryptocurrency operators.
Dinero publication explained, “The government of President Nicolas Maduro published a decree that will require taxpayers who carry out operations in foreign currencies or cryptocurrencies to pay their taxes in that same currency and not in bolivars.”
The decree outlines that the Venezuelan people are facing a fierce war carried out by internal and external factors that lead to the deterioration of the economy, resulting in the need for measures that strengthen the current fiscal regime. The decree is effective from the time of its publication in the national gazette, and The Ministry of Popular Power of Economy and Finance is responsible for the execution of the decree.
Article one of the decree outlines that Venezuelan taxpayers who perform their operations in foreign currencies or cryptocurrencies must calculate and pay their tax obligations in foreign currencies or cryptocurrencies.
The decree also lists two exemptions: one, transactions of securities traded on a stock exchange and second, export of goods and services, performed by public bodies or entities.
Using local cryptocurrency for tax calculations
Maracaibo Municipality, in the Zulia state of Venezuela, announced that the local cryptocurrency, Petro, will be used as the basis to calculate business tax. The announcement created some confusion among residents, who thought that they will have to pay taxes in Petro. However, it was later clarified that the residents need not pay in Petro, but the value of Petro will be used as a reference unit to determine the minimum tax.
Jean Carlos Martinez, the intendant of Servicio Desconcentrado de Administración Tributaria (Sedemat), stated that Petro has two values; one, as a cryptocurrency, for digital currency trading, and second, “as a unit of account that translates into 9,000 sovereign bolivars, which will be used in passport procedures or current salaries”.
The new decree also states that tax payment will be carried out based on the economic activity of a company or micro enterprise. People with transactions in Bitcoin, Petro or any other cryptocurrency need to declare their income based on the currency that they manage.
More and more government agencies worldwide are accepting cryptocurrencies, and allowing their residents to pay their taxes and even pay for their purchases in cryptocurrencies. This is building confidence in people to indulge in digital currency trading. Certainly, when cryptocurrencies are a more secure, fast and cost-efficient way of making transactions, people would prefer digital currencies to fiat money. While many people have already made a switch to cryptocurrencies, many others are encouraged to do the same, especially after news related to increasing adoption of cryptocurrencies hit the market.
In mere 9 years, cryptocurrency has made a remarkable statement in the financial sector. It has managed to acquire people’s attention, and more often than not, their admiration. From security and instant transfer to decentralized applications, transparency and more – blockchain technology and digital currency trading are considered extremely beneficial.
Be it tech industry, healthcare, gaming, IoT, HR and even fishing, blockchain and cryptocurrency could revolutionize the economy on a global scale. Let us have a look into the future of cryptocurrencies.
Tech industry will be a major hub for cryptocurrency
Tech giants like Dell, Microsoft and Dish are now accepting cryptocurrencies as payment. This is serving as a revolutionary solution for peer-to-peer money transfer. The fact that more tech companies will go for digital currency trading in the near future means that:
- There will be a need for individuals in various crypto-related positions, and the demand for blockchain builders, crypto miners as well as cryptocoin exchange platforms is expected to rise.
- The different ways to transfer funds, process agreements using smart contracts and track shipments through the blockchain ledger will help prevent the loss of shipments, without the need for a middleman.
- The cases of fraud and identity theft are expected to decrease as blockchain technology helps ensure that the information goes through legitimate channels only, without any mediator.
Cryptocurrencies will receive more funding from institutional investors
With more and more governments accepting digital currency trading, investors are feeling confident about put their money into the same.
The added regulation will help the institutional investors to breathe easier and have less concern about the uncertainty of the crypto market. In fact, more and more investors are seeing digital currencies as a viable asset, owing to the returns that these currencies offer.
These are a few predictions about cryptocurrency, there are many more which prove that cryptocurrency is here to stay. If you are considering investing in cryptocurrencies, look for a trusted and secure cryptocoin exchange for safe and valuable trading.
Ever since the release of the first cryptocurrency, Bitcoin, there has been the trend of investing in these digital currencies. As the investors started making money, more and more people tried their hands at crypto coin trading. While some made huge profits, others made some mistakes, which prevented them from making desired profits.
There are different things that need to be considered when it comes to cryptocurrency trading. Here are a few useful tips that can help you to ensure that your investment remains secure and, in turn, helps you to achieve profit.
Plan your investment
Before straight away beginning with the investment, plan the entire process. It includes choosing the cryptocurrency that you want to invest in, the amount of coins to be invested, evaluating the market position of your chosen crypto coin, and selecting the right cryptocoin exchange for trading. The investment process must be well-evaluated to ensure that you make fewer mistakes.
Invest in multiple crypto coins
It is extremely important to go multi-coin as otherwise you might miss out on cryptocurrency with potential. By investing in multiple coins, you can make big profits from your investment. A crypto coin’s market can get a boost at any time, and if you know how and when to cash out the opportunity, you can be lucky to end up making big bucks.
Count on a trusted cryptocurrency exchange
This strategy is adopted by most small-scale investors to invest in multiple cryptocurrencies. Given that small-scale investors lack the privilege to buy multiple crypto coins, they count on cryptocoin exchange platform to exchange their coins for other crypto coins. For example, if you have Bitcoins and you are interested in buying Ethereum, then you can choose these exchange platforms to exchange Bitcoin for Ethereum.
Evaluate the market value
Evaluating the market value is one of the crucial factors in increasing your chances of making profit. The ups and downs of the market can be best assessed from the market value. In addition, market value can help determine the market history that offers the benefit to evaluate the market security and reputation of cryptocurrency.
Have a risk management plan in place
Risk management is extremely crucial if you want to become a profitable investor. The total budget of an investment should be distributed across all investing platforms. This will help you to rest assured that you do not face a huge loss if your chosen cryptocurrency faces any loss. Hence, having a risk management plan in place at the time of crypto coin trading will help ensure that you achieve desired results.
Once you decide to invest in cryptocurrencies, you are sure to come across a plethora of exchange platforms. Count on a trusted and a reputed cryptocoin exchange for secure and easy trading.