Crypto trading refers to buying and selling cryptocurrencies, typically on online exchanges. Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units. Bitcoin, the first and most well-known cryptocurrency, created in 2009.
There are now thousands of various cryptocurrencies, with new ones being created. Some of the more popular ones include Ethereum, Litecoin and Ripple. Cryptos are often traded against a currency, like the US dollar, but traders can also trade them against another cryptocurrency, like Bitcoin.
Why trade crypto in Sydney?
Sydney is one of the leading financial centres in the Asia-Pacific region and is home to several cryptocurrency exchanges, meaning there’s a large and liquid market for trading crypto.
The time zone of Sydney is also favourable for traders, as it overlaps with the Asian and European markets. It allows traders to take advantage of both day and night trading opportunities.
What is the most successful strategy for trading crypto in Sydney?
The most successful strategy for trading crypto in Sydney is not unique to the city, and it is to use a combination of technical and fundamental analysis.
Traders use technical analysis to study past price patterns to predict future price movements and to identify trends and support and resistance levels.
Fundamental analysis studies economic factors that can affect the price of a security, which includes things like inflation, interest rates, and company earnings.
Combining these two types of analysis will give you the best chance of success when trading crypto in Sydney.
When it comes to technical analysis, there are many different indicators that you can use. Some popular ones include moving averages, Bollinger Bands, and Fibonacci Retracements.
It is also crucial to watch the news when trading crypto because news events can significantly affect the price of cryptocurrencies. For example, if a country announces that it will ban cryptocurrency exchanges, this is likely to cause the price of cryptocurrencies to fall.
By using a combination of fundamental and technical analysis, you can make informed decisions about when to buy and sell cryptocurrencies, which can help you greatly when trading in the Australian market.
How do you trade crypto in Sydney?
Find a reputable cryptocurrency exchange
The first step in trading crypto is to find a reputable cryptocurrency exchange. Several exchanges operate in the city, so it is essential to do your research before choosing one.
Choose the right trading strategy
As discussed above, the most successful traders use a combination of technical and fundamental analysis. So, It would be best to decide which approach you are going to take.
If you are new, It may be best to start with a simple strategy that only uses technical analysis. As you gain experience, you can add fundamental analysis to your strategy.
Place your orders
Place your orders once you have chosen an exchange to trade on and a trading strategy. Most exchanges will allow you to buy and sell cryptocurrencies using limit and market orders.
Limit orders permit you to set the price you want to buy or sell a cryptocurrency. Market orders will execute your trade at the current market price.
Also read how much does it cost to buy ethereum?
Monitor your position
Once you place the trade, you need to monitor your position. Meaning you need to keep an eye on the price of the cryptocurrency you are trading.
If the price benefits you, you may want to consider selling to take profits. If the price moves in opposition to your prediction, you may want to consider closing your position to limit your losses.
What are the risks of trading crypto in Sydney?
The first risk of trading crypto in Sydney is that the market is highly volatile, which means prices can move quickly, and it can be hard to predict which way they will go.
Another risk is that, a lot of scams associated with cryptocurrencies because it is a relatively new industry. So, many people look to take advantage of investors.
Exchanges not regulated
Another risk of trading crypto in Sydney is that the exchanges are not regulated. Meaning that if something goes wrong, you may not have any recourse.
Click here to contact Saxo Bank for more information on the kind of cryptocurrencies that are available for trading in Australia.