Cryptocurrency known for its volatility, the frequency of double-digit percent changes in just 24 hours, and this period is too frequent for the world trade. However, it gives traders more opportunities, surprises and losses to profit. It is also interesting productivity and profitability of all cryptos assets for the year 2017 when the bitcoin increased by 20 times and the Ripple more than 300 times. He continues to gain popularity among investors.
The technology of client is combined with the price range, the behavior of people, and this niche created a separate school of thought when it comes to trade. So, it is crypto «evangelists», and ambitious technologies of blockchain. They advocate HOLD, which means «to hold on to another life». These are investors, who want to keep bitcoin or Altcoins in an environment where there is a balance of time. It does not depend on the price. Recent studies have shown that prices in bitcoin fell from $20 000 to 7 000 dollars. This happened just a few weeks in the current 2018. This gave birth to a lot of doubt that HODLs generally can stay in the price range of currencies.
There are people who see crypton as powerful trading tools. This volatility to move up and down the tape arrived. At the same time traders are willing to liquidate their positions, driving the destruction of the currency. This elimination of the trend, which protects the profits and losses of the crossings, limiting the system against loss and re-entering the market.
So, the term HODL appeared in late 2013, when the price of Bitcoin plummeted to $200. Many traders have decided to update their money through HODL system by investing in bitcoin. This meant that their position for a cheap currency will be higher if it will grow. However, wait for these results is too long, as it turned out. After the recent volatility it was profitable, so HODL holders seek to maintain the trend of the currency market. But it is comparable with the uncertainty and price errors.
On the other hand, this approach to trading has never been so skeptical and incomprehensible, uncertain. And it was so profitable that benefits showed up by themselves. With multiple instruments binary options have become a source of profit, and that, because you just guess the position and value of the currency. The length and size did not matter that the increased potential prize. Profit initially gave flexibility, and unlike HODLers, it gave the opportunity to earn money is not due to the growth of the price, but due to her fall.
Another tool was the difference between the contracts that has been known as a CFD. This is a financial tool that allows you to determine the value of assets due to their difference in the rate of value. This is due to the margin, and if the underlying above, the margin length is shorter. It is possible to carry out rate in two places at once. If there is a trade that is configured for CFD, you can afford a higher profit than just directly bets and options.
Doesn`t matter how the tool was used for trading, it would be the primary point of support. Strategy in such cases go by the wayside. Cryptos analysis and fundamental research are much more important than the strategic arms and strategy as a whole. Price reports are absent, and various announcements, economic indicators and changes in investing business. Relying only on the technical details, you can find support through the volatility, which gives a greater chance of success.
The technical indicators are the main in here, because the outcome of short-term trades depends on them. There is a proverb in the market of trades that says: markets take an escalator when rise, but the elevator is needed only for a recession. This means that the income movement may not be the same – in the first case it increases, and in the other sense of the falls, but in smaller numbers. By the time all is the same – growth is longer than the recession. Technical indicators give a clear idea of when to enter or exit from the market. Therefore, we must scrutinize these figures in order to increase the odds of winning at the expense of making a plan.
In conclusion, it is worth noting that the market of currency must be comfortable for the money earning potential as an effective trading tools and lead to the implementation of the conceived plan. HODL has no relation to traders and long-term profitability cannot simply just to be on the agenda. However, the active model with profitable trading access to the market is very interesting, and it does not depend on how prices are moving.
General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.