Ethereum: Starting Guide to Stock Exchange Trade
As the growing number of investors and merchants turn to digital assets, the world of cryptocurrency trade has become popular. Two of the most important stock exchanges of Ethereum trading stand out – MTGOX and Binance Coin Exchange (BTCE). In this article, we break down how the trading of these stock exchanges works, including key concepts, such as offer and purchase orders, market orders and leverage.
** What is a trading platform?
The trading platform is an online interface that allows users to buy, sell or trade different tools, including cryptocurrencies such as Ethereum. Stock exchanges act as a mediator between buyers and sellers, facilitating transactions in real time. The main components of the trading platform are as follows:
- Order book: List of available trade in increasing (bid) or declining (ASK) order.
2nd market date: real -time market information such as prices, charts and news.
- User interface: Intuitive interface for placing orders and managing accounts.
How does the stock market trade work
Here is a step -by -step explanation of the MTGOX and BTCE trading process:
- Registration : Users create an account on the Exchange platform by specifying basic information such as name, E -Mail and password.
- Debit funds : Users are deposits with various payment methods such as credit/debit cards, bank transfers or cryptocurrencies to Ethereum (ETH) or other cryptocurrencies.
- Select devices : Users choose the Ethereum device they want to trade and select from the list of available coins.
4.
* Purchase Order (Bid) : Buy Ethereum at the current market price or lower. The user sets a minimal amount and maximum amount that is willing to buy, the so-called Stop-Loss level.
* Sells your order (ASK) : Enter Ethereum at the current market price or higher. Users set the desired profit margin and target value.
- Suitable orders : Stock exchange algorithms are automatically identical to buying and selling orders under current market conditions, ensuring that fair prices are achieved for both parties.
- Completing Orders : If the Buyer places an order to purchase Ethereum at the offer price, MTGOX or BTCE will fill in this order with the number of equity (or token) at the prevailing ASK price.
Common Trading Concepts
In order to make the exchange in these stock exchanges easier to understand:
* Bid vs. Ask : Bid is the price the buyer is willing to buy Ethereum while the ASK price is the price the seller is willing to sell.
* Market Order : The market order is the same as existing trade (for example, 1 ETH for $ 50) when the market dictates prices. Users can place the market order via their account or use the Place Market Order.
* Stop-Loss : Set the stop-loss level to limit losses if the price of Ethereum is below a certain level, protecting users from potential losses.
Risk management
Exchange trade is a risk including:
* Market volatility : Prices can fluctuate quickly due to supply and demand imbalance.
* Leverage
: Leverage trade can increase profits or losses and require users to effectively manage their risk.
* Position Measurement : Users need to set a realistic stop-loss level and limit their overall exposure to avoid significant losses.
Conclusion
MTGOX and BTCE trade is a clear process that includes the registration of the invoice, the deposit of funds, the selection of assets, the dealers, using the offer or requesting orders, agreeing, and managing the risk by measurement. In these stock exchanges, users can make sound decisions by understanding the basics of commerce and successfully trading with Ethereum and other digital tools.
