A Crypto Trader is a person who is engaged in buying and selling cryptocurrencies in the market. Cryptocurrencies are very volatile and their value can fluctuate significantly in a short period of time, which means that the spread between buying and selling represents the traders' profit. that spread between buying and selling represents the trader's profit.
-Technical Analysis: It deals with the understanding of price movement, with the purpose of forecasting future price trends. It is commonly presented by means of charts called Japanese candlestickswhich, if interpreted correctly, help us to understand which is the predominant force of the market, whether it is the buyers (upward movements, the price goes up) or the sellers (downward movements, the price goes down).
Also, you can put together several variables such as change models or trend continuity, volume and indicators, to create a strategy that is right for you. You can practice your strategy for analyzing cryptos for free on platforms such as Tradingview y Poopcoin.app.
-Fundamental Analysis: In the case of cryptos you should find out about news of the sector, how it is going economically and politically; because these are part of the causes that affect the market.
But you must also select projects that in the medium and long term provide real and practical solutions. For this, analyze the whitepaper of each project, identify what type of cryptocurrency it is and what it will be used for (stablecoins, security tokens, utility tokens, etc.), governanceetc) and evaluates the team and stakeholders in the project.
Remember, overvalued assets should be avoided, while undervalued assets are more ideal because of their growth potential.
There are centralized and decentralized platforms that allow crypto traders to buy and sell cryptocurrencies, as well as perform technical and fundamental analysis to make informed trading decisions. Centralized:
Additionally, traders can use DeFi platforms to exchange digital assets related to cryptocurrencies quickly and securely. Decentralized:
With the emergence of crypto, new market models emerged. The goal of DeFi, or Decentralized Finance is to offer a series of financial services built on the Blockchain, seeking to eliminate intermediaries.
Features
The development of Defi has led to the creation of several platforms with well-defined objectives and services such as:
-Staking Platforms: Allows you to store your cryptos and offer you options to earn interest according to the amount of coins stored.
A quite similar operation to the savings accounts of banks, but, it is more profitable to do it with Defi, the interests are usual to see them in the order of 5% to 10% per year. Interest is paid in the same crypto you have stored.
-Lending Platforms: Using the P2P payment method you can agree directly with the person the repayment time and interest you would receive. Generally these loans are short from 7 days to 3 months to pay.
Some available platforms are: Makerdao, Aave, Blockfi, Compound, Balancer....
-Decentralized Exchanges (DEX): They allow you to exchange coins in a decentralized way so that you always have them guarded in your wallet.
For the operation of these platforms, liquidity pools are created where users deposit currency pairs and in exchange obtain a percentage of the commissions charged by the platform.
-Futures Futures in Defi: Can be viewed as a market where participants bet on a certain event in the future and those who get it right earn a reward for it.
These profits are distributed among all the people who won in the market and are added to the money they initially put into the participation.
That is, there is no percentage of profit and the profits can be small or large, it all depends on the market size and how much you have earned on your position. Some Oracles Platforms are: DyDx, Perpetual, GMX....
