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Author: Admin | 2025-04-27
In crypto tradingWe have covered much about the possibilities of trading crypto CFDs, but there are also risks to be aware of before getting started.High-risk speculative productsAs earlier mentioned, with CFD trading, you only need to deposit a smaller percentage of the value of a trade to open a position, which means that the profits and losses are based on the total value of the trade. Cryptocurrencies are volatile, and combining that with trading them on margin could lead to significant losses.Charges could be more significant compared to other asset classes: Before trading, you should review all costs involved, as higher chargers may be observed with trading crypto CFD, which should be factored into profit/loss expectations.Pricing variationsThere could be large swings in the pricing of cryptocurrencies, which are used to determine the value of CFD positions.Later in this guide, we will cover some methods to effectively manage and mitigate your crypto trading risks.Let's now take a step into the more practical side of trading, learning about the different types of cryptocurrency charts and how to read them.Reading Cryptocurrency ChartsLine chartIt could be a line chart, one of the most basic price charts. But instead, it is a single line that will connect all of the closing prices of a cryptocurrency for a specific time interval. They are simple to follow. However, the line chart may not be the best at telling traders much about each day's activity of the crypto they are trading. Nevertheless, it will help show trends and compare the closing period from one period to the next.To select the line chart on the Libertex platform, choose the crypto CFD you wish to trade, then click on the line icon, located underneath the live asset price.Bar chartAnother way to view chart price activity is via a bar chart. These can help traders view the price range of each period. They may increase or decrease in size from one bar to the next or over a range of formed bars. During high and low volatility periods, the bars will expand and contract.To select the bar chart on the Libertex platform, choose the crypto CFD you wish to trade, then click on arrow icon located underneath the live asset price, then select bars.Candlestick chartA variation of the bar chart is a candlestick chart. Candles will help in providing a visual representation of bullish or bearish sentiment. These will usually have default colours applied, green and red. The green represents the buyers controlling that particular period, whereas the red represents the sellers.Candlesticks have a body that gives trades the range between the opening and closing prices in a given period. The high and low prices are known as wicks or shadows.Traders
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