Digital Asset's

Blockchain Technology Blockchain technology is regarded as a megatrend because it could sustainably change society – particularly the financial and transport sectors. Classic payment systems and banks may soon become redundant with blockchain technology. As investors, we can benefit from this development, which is why we trade in various cryptocurrencies. Since trading cryptocurrencies like Bitcoin and Ethereum is becoming increasingly popular, many people are asking: What is a crypto trader? In answering this question, we also discuss how much one can earn as a trader in crypto trading. Additionally, we highlight the things to consider when trading cryptocurrencies. A trader earns money by exploiting price movements in the market. This trading typically occurs on a short-term basis, meaning that a position may be closed after just a few moments. On the other hand, there are also situations in which a trade is held for several days. However, if someone plans to keep positions open for a longer time, they are not trading but investing. When trading cryptocurrencies, the approach is similar to trading the DAX or currency pairs like the Euro/US Dollar (EUR/USD). However, cryptocurrencies tend to have more significant price fluctuations than are typically seen with other financial instruments. As a trader, one can use either fundamental analysis or technical analysis. Examples of fundamental data include: Decisions made by central banks (for example, a reduction in interest rates) Political events (such as elections) Positive or negative news specifically affecting individual cryptocurrencies (like new application opportunities for the Ethereum blockchain) Furthermore, it is also beneficial to rely on technical indicators in crypto trading. These are useful for generating signals for entry and exit points, as well as enhancing market understanding. Popular indicators in this context include moving averages. A simple example is the 200-day line: This indicator calculates the average price over the past 200 days. For instance, if Bitcoin is trading above this line, many traders will assume that an upward trend is currently present. Conversely, a downward trend is seen if the cryptocurrency falls below the 200-day line. In our experience, the RSI (Relative Strength Index) indicator is also frequently used when trading crypto coins. The indicator ranges between 0 and 100. As a crypto trader, one should particularly pay attention to the values of 30 and 70: If the RSI falls below 30, it indicates an oversold market condition. In this situation, it is advisable to be cautious with further short trades, as a price reversal is likely to occur soon. Once the indicator rises above 30, it generates a signal for a long trade. Conversely, values above 70 indicate an overbought market situation, leading to the opposite of what was just mentioned. Thus, as a trader, one must primarily be patient and wait for good signals before making trades. This is often difficult for beginners, who may be tempted to enter positions that do not fit within their strategy. However, with increasing experience, one typically learns to exercise better control, which in turn will improve performance.