Binance Coin Trading, Everything You Need To Know
With a market cap of over $78 billion, Binance is the 4th largest cryptocurrency in the market, according to reliable market trackers. It’s the native coin/token of the Binance cryptocurrency exchange, and it’s used to facilitate transactions on the Binance network. Launched in July 2017, Binance has grown to be the leading crypto exchange globally with its own smart contract platform that allows developers to launch apps into the crypto market. The increased use cases for the Binance smart chain and the exchange’s popularity have made BNB a highly sought-after token. The coin has an ROI of over 409,000%.
What Is Binance Coin Trading
Binance coin trading is the act of buying and selling BNB for profit. This can be either short term or long term. And judging by the ROI, there is plenty of profit to be realized by getting involved with this coin. There are plenty of platforms that allow one to trade BNB.
Binance Coin Trading Strategy
There are two trading methods for Binance coin and other cryptocurrencies; active and passive trading. The latter involves buying and holding the digital asset for as long as possible, and as the project grows, so would the value of your portfolio. You might know this strategy by the term investing. Here you will buy some BNB and hold it for years. For example, the individuals that got in early on BNB today have witnessed their investments grow by over 4,000x. If you choose this option, ensure you invest in a hardware wallet that will help to store your private keys safely over long periods.
However, this article focuses on the active buying and selling of BNB, which most people consider trading.
How To Trade Binance Coin
There are several ways you can actively trade BNB. The first is day trading, where you buy and sell the asset within the same day and keep the profit. Other methods include range trading, where you will conduct technical analysis on the coin, identify active support and resistance lines, and then use them for trading. There is also scalping, where you enter the market within a few minutes and exit to take advantage of volatile price movements, targeting small market movements like 2-5%. Another possible way to make money trading BNB is using arbitrage. This is where you buy the asset on one exchange and sell it on another. Given the pricing on most platforms differs, identifying the cheapest place to buy and the highest place to sell can leave you with some decent returns.
Active trading can be done either on the spot or in derivative markets. The former allows one to buy and sell the actual asset, BNB. You will have to buy cheap and wait for the price to rise before selling and keeping the difference. However, if you want to make the most trading BNB, you can trade derivative markets. Here you will trade Binance coin CFDs. These are financial instruments attached to the actual asset. Unlike spot markets, you can profit if the market moves up or down. Think of it as speculating the direction the price will move. Also, you get to trade with leverage meaning your capital receives a boost, thus increasing your profitability.
Learn Binance Coin Trading
Trading BNB can be lucrative if done right; however, a lot of work needs to be done to become a profitable trader. You need to learn how to conduct technical and fundamental analysis. Also, you need to practice sound risk management to protect your account. Additionally, you need to dedicate many hours monitoring the market, which can be hectic. This is where bots can help since you need to set the parameters, and the robot will automatically execute the trades for you 24/7. As for mastering the skill, there are plenty of free online resources you can utilize or buy a reputable paid course. Either way, you will need to be dedicated to move from amateur to a profitable trader.
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