Cryptocurrency trading is not for the faint of heart, but it is exciting when you are on a winning streak. With that said, there can be many pitfalls along the way to success. The world of cryptocurrency is changing. The evolution in the blockchain space has been incredible and unpredictable, but also a little confusing for many people trying to keep up with it all. New coins are being created daily, new exchanges popping up left and right, crypto-friendly services becoming more widespread, it can be hard to know where to turn! There are many platforms available for trading but Kraken is one of the most popular cryptocurrency exchanges in the world because it offers some unique features not found on other exchanges such as low transaction fees and margin trading options.
Let’s have a look over some of the best strategies for trading on Kraken.
1. Understand The Basics Of Trading On Kraken –
Since there has been a battle between kraken vs binance lately, let us first discuss Kraken. Kraken is a reputable exchange with good security, so it should be your starting point. It has been around for five years and survived through multiple bitcoin booms and busts. Since its inception in 2011, the company behind Kraken has made significant investments into their system to accommodate an increasing demand from clients looking to buy, sell or trade digital assets including Bitcoin, Ethereum and much more!
2. Sign Up For An Account With Kraken –
When you first login on kraken using a new account ,a screen will show up with different options. You can choose between three options : New accounts – Basic Accounts For Individuals And Businesses That Just Want To Buy/Sell & Withdraw Funds Held In The System (Requires photo ID verification) – Verified Accounts Allow Trading Of Specific Digital Assets & Higher Deposit/Withdraw Limits (Requires photo ID and proof of residential address) . Click on the option you prefer to use.
3. Fund Your Account With Fiat Currency –
Kraken also allows you to fund your account with USD, EUR or GBP. In order to do this, log into the website and click on “funding” in the top menu bar then select “deposit”. Then choose the amount of fiat currency that you want to deposit from either a bank transfer or credit card. To fund your Kraken account with US dollars, you must first buy cryptocurrency on another exchange and then send that currency to your Kraken wallet. You can also wire money directly into the bank accounts of Coinbase or Bitstamp without fees by linking it to a credit card. This will depend on whether you are an individual funded through SEPA (Single Euro Payments Area), which is associated with European banks, or if you want USD withdrawals sent straight to your bank account in America.
4. Place A Trade Order –
Market Order allows users to buy or sell at market price, whatever is currently listed in the order book. A market order will purchase as much digital currency as it can for the amount entered into a limit order that specifies how much bitcoin they are willing to pay per coin when buying, or accept when selling. The difference between this type of trading activity is called “slippage” because your trade may not be executed exactly where you expected due to rapid changes in price during periods of high volatility. It also does not allow users to set a price, it will execute at the best available rate.
5. Monitor Your Positions And Adjust Accordingly –
One of the most important things to do when trading cryptocurrencies is always stay up-to-date on what positions you have open. Kraken has a great feature called “open orders” which will list all your trades and let you know whether they are still active or not! This way, if something happens where one of those transactions was supposed to be completed but never turned out that way then you can at least attempt to cancel it right away before any problems arise down the road!
6. Avoid Using Stop Losses –
Stop loss orders usually help protect traders from losing too much capital in case their trade takes an unexpected turn for the worse. However, this isn’t actually recommended because crypto markets move fast and sometimes recover quickly as well. If anything were to happen that would cause your trade to go awry then you wouldn’t be able to get out of it because the order would have already been placed, leaving you at a loss.
7. Set Price Alerts To Be Notified –
Cryptocurrency is so unpredictable, it’s crucial to always be aware of the market. Setting price alerts will let you know when your chosen coin’s increase or decrease in value so that you can act accordingly rather than suddenly finding out about major changes after they have already occurred!
Strategies for cryptocurrency trading can be difficult, but putting a few of them as mentioned above into practice will help you get on the right track to success.