Сryptocurrency

Reality show “I am a crypto-trader”: how to trade on the exchange

Сrypto_trader
Written by loan

Our hero Vasya Lentyaev successfully registered at the exchange, and now he is developing the system. Let’s go step by step with him.

Open the profile. After the Binance logo goes the menu Exchange – Exchange. You can go in two modes: Basic and Advanced.Everyone has their pros and cons. Let’s start with the base one.

 

Binance Crypto Exchange Interface

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  1. Name of currency and price.
  2. Price Schedule.
  3. Exchange cup.
  4. List of trading pairs.
  5. Trading history.
  6. Drawing up orders.

All the elements of the exchange interface (except for the actual issue of orders) can help in the analysis of the coin: to understand what is the moment and what to do – buy, sell, keep the asset.

The first block, the topmost one, shows the name of the currently open trading pair – here Bitcoin to Tether, BTC / USDT. Trading pair – what a coin they buy / sell for. Here we can buy bitcoin for available USDT or sell available Bitcoin for USDT.

Next come:

  • Last Price – the last price, the “freshest” of the incoming orders;
  • 24h Change – change in 24 hours. We see that the bitcoin rate to USDT has decreased by 3.32% from the opening price;
  • 24h High, 24Low – the maximum and minimum price per day;
  • 24h Volume – the volume of trades per day.

In the corner there were two icons – the sun and the moon. Convenient switching modes from day to night. God bless those who invented a night mode of display with a dark background and a light font: the eyes get tired much less. This is how it looks:

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How to read the graph of the crypto currency

At the very top of the graph are the time period buttons: Time, 1-30m, H, 1D, 1W.

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Time – a minute graph with divisions of 10 minutes (look at the symbols at the bottom of the scale).

Nearby – 1m with a triangular arrow. If you click on the arrow, the interval list will drop out:

  • 1m – also for 10 minutes (candles themselves are formed in 1 minute);
  • 3m – for 24 minutes (candles are formed in 3 minutes);
  • 5m – for 40 minutes (for 5 minutes);
  • 15m – 2 hours (for 15 minutes);
  • 30m – 4 hours (for 30 minutes).

The indicator H also offers a list at intervals of 8 hours to 24 hours. 1D (candles per day) – for 8 days, 1W (per week) – by months.

To analyze the graphs, several timeframes should be taken. Usually analyze the “package” of three graphs: 4 hours, day, week. Although the choice of the time interval depends on the purpose of the analysis. If we need to analyze short-term trends, take a short time. Long-term – with long periods of time.

To conduct a more effective analysis, you should consider both a short and long term:

  • short – purchase and sale within one day;
  • Mid-term – operations for a period of several days to a week;
  • Longevity is like investment, from a week to several months.

Transactions in a short period of time are more like gambling due to price movements. In this case, perseverance and constant tracking of schedules is required. For our Vasya this is not an option, he has a basic job plus a family, a child, but to live when? No-no-no, David Blaine.

Average term – we hold open orders for several days and check the price movement once per hour or several hours. The result should wait longer than from intraday trading. Long term – also look at prices once a day or less. This option is more like Vasya.

Note that the crypto-currency market is more unpredictable than traditional, so short-term trade looks extremely extreme. To save nerves and avoid gambling, choose medium- and long-term warrants.

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We are still at the top of the chart and yet do not look at prices. We see the buttons Original, TradingView, Depth and four arrows. The first is the chart of the stock exchange itself. The second includes the schedule of the TradingView resource. In this case, it’s a matter of taste, what to choose. Both display courses in the form of Japanese candles. The four arrows unfold the chart for the entire screen.

Depth – the depth of the market. The graph shows the volumes of demand and supply. Green – buy orders, red – for sale. Below we see the current rate of the Crypto currency.

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We put the cursor on the line and find out how many orders it will take to change the course in one direction or the other. On our chart, it is seen that for the price of 5,933.67 USDT made 40.47 warrants for sale.

The more orders for sale (the higher the red area on the graph) – the lower the course, the lower the price of the bargain. If the red area is above the green, it’s a bear market: more sellers than buyers. And vice versa.

One more conclusion: the more the price falls, the more traders will want to buy a coin exactly at this moment, and the trend can change. But the depth of the market is only an auxiliary tool. Trends are analyzed on the main chart with Japanese candles.

Analysis of the basic Binance graph

What can we learn from the basic schedule? In fact, quite a lot of information. Let’s include the time interval of 30m and see what Binance tells us about BTC / USDT.

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Point the cursor at any point on the chart. The blue lines show the price at which we stopped the mouse, and the time: June 29, 2018, 08.30 am. At Binance adopted a Western time format in the order of a year – a month – a day.

At the top of the chart read:

  • O: 5825.16 – the price of opening (open), the price at which trade began in this time interval, from 8.30 to 9.00;
  • H: 5979.00 – the maximum for this time (high). It coincides with the end of the upper shadow of the Japanese candle (a thin stroke on top);
  • L: 5808.90 – minimum for half an hour (low). It coincides with the end of the lower shadow of the Japanese candle (a thin stroke from below);
  • C: 5906.00 – closing price (close) in these half an hour. At this price, trading ended at 9.00, the next candle for 9.00 – 9.30 began to form further;
  • Change: 1.39% – price change;
  • Amplitude: 2.92% is the amplitude of the change.

The next important set of numbers is highlighted in yellow, purple and pink. The numbers refer to the corresponding curved lines on the graph. The values ​​that match the blue line of our cursor are displayed:

  • yellow MA (7): 5869.7;
  • Lilac MA (25): 5945.764;
  • pink MA (99): 6064.27101.

MA are moving averages that show the average price for the selected period. They show where the trend is going – down (bearish) or up (bullish). In this case, all three lines go down. Short or fast (yellow) repeats the movement of the chart, long or slow (pink), the most distant from the chart.

Let us consider the main theoretical points concerning the means.

  1. If the price crosses the moving average from the bottom up – this is a buy signal (to open a long position).
  2. If the price crosses the middle from top to bottom – a sell signal (exit from a long position, open a short position).
  3. If the fast MA crosses from the bottom up to the slow one, it is a signal to buy. When it crosses from the top down – a sell signal.

This is the main trader indicator, no analysis without it is not complete. Moving averages are devoted to plump research and countless trading strategies.

Now attention. If we rely heavily on the moving averages, we will lose and remain in the red. The first lethal deficit – MA seriously delayed. The second significant drawback is that they can not be applied in the lateral movement of prices (flat). Let’s look at the outset of another market:

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As you can see, it is impossible to clearly choose, at what moment to buy, on what to sell. Let’s look at the graph of moving averages of our bitcoin in the interval 1D:

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Note the point where the fast MA (7) crosses downward from the mid-term MA (25) and then the slow MA (99).It’s a sell signal, but when did he do it? At 3 o’clock in the morning on the 11th. And the first bear candle with which the trend went down, formed at 3 o’clock on the 6th day – five days ago! And during this time the price changed from 9863 to 8475 USDT, minus 1 388 USDT or 14%.

Output: Together with the moving averages it is mandatory to use other indicators. Service TradingView provides good opportunities, even in free mode. At Binance, detailed technical analysis is available in the Advanced version. We will necessarily consider all the indicators in subsequent articles. Until we return to Basic – Lentyaev has not yet learned everything in this interface!

What else do we see on the chart? Duplicate it for convenience.

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We see black arrows with numbers – the maximum and minimum in the chosen time interval. Also the price in the pink frame on the price axis is the price of the last order just placed, right this minute. Even lower on the horizontal axis is the trading volume – the current number of orders is highlighted with a pink frame. Pink here is a conditional red, bearish market, a trend to decline.

Below is the MACD indicator (12,26,9). This is the convergence / divergence of the lines, the trend strength, direction and pivot points are visible from them. The MACD is the difference between the fast and slow averages.

The strength of the trend is shown by a histogram – pink and green bars. The indicator is built on the basis of the same moving averages. The histogram gives a signal earlier than MA. Divergence – the distance between the averages increases, the trend develops faster. Convergence – the distance decreases, the trend slows down.

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On our chart with a dedicated bullish candle, the yellow fast MACD line crosses the blue slow from the bottom up. Signal for the purchase is given almost at the time of the formation of the candle. But note that the green on the histogram does not always coincide with the green bullish candle. Here, only the strength of the trend is displayed, the lines are different from one another. And since the averages themselves are late, then MACD is not quite accurate.

What can you say about the situation as a whole? This is a good opportunity to buy bitcoin – prices are steadily creeping down. The trader’s task is to determine to what level the drop will come and when the trend goes up.Thus, Lentyaev will buy cheaper, sell more expensive. Ideally.

Always remember the fear of lost opportunity. It is harmful and even unnecessary emotion. The market almost never fails to catch the ideal low or high price. It is important to understand here that everything is relative. Traders who sold bitcoin for $ 17,000 could sell it later, at almost $ 19,000. They could – but they already got a good profit. And if bitcoin started to fall by $ 17,500 – with a position at $ 19,000? The ideal moment will never be calculated exactly. We reject greed and remain cold-blooded.

How to analyze a stock exchange glass

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Let’s go to the third part of the Binance exchange interface.

In the column to the left of the chart, we see current orders for sale – from above, for purchase – from below. You can change one of the three buttons: only for purchase, only for sale or both types of orders.

  • Price – the price of the order (orders for purchase / sale).
  • Amount – the amount of coins to be bought (here BTC).
  • Total (USDT) – the amount of USDT in transactions on this coin.

The highest prices are at the top, low prices are at the bottom. In the middle – the price inside the spread between the price of the buyer and the seller. Often, it coincides with the last price of the issued order. Orders here have not yet been fulfilled – these are only applications for purchase or sale.

On the background of the glass, a histogram is visible – red and green horizontal bars. The larger the column is filled, the more USDT is traded at this price. For example, we see the price of 5,865.69 – with a volume of 11,731.38 USDT, under it the longest column is painted.

The analysis of the exchange cup is good for short-term, instant decisions, because it displays only a small part of the orders at the moment. More details on his analysis will be discussed in the following articles.

Trading Pairs and Trade History

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On the right in the column are a list of trading pairs and the history of trade.

At the top of the column are the following buttons:

  • Favorites – selected crypto-currencies, you assign them yourself by clicking on the asterisk next to the name of the pair.
  • BTC – trading pairs with a leading virtual coin bitcoin;
  • ETH – pairs with the second most important coin Ethereum;
  • BNB – pairs with the Binance Exchange Token;
  • USDT – couples with Tether stebblecoin (its price is tied to the US dollar price).

Below, you can enter the abbreviation of the coin in the Search box to quickly find the desired pair. Coins can be sorted by changing the rate (Change) or by the volume of trades (Volume). The default is alphabetic sorting.

In the column itself we see the name of the pair (Pair), the current price (Price), change in rate or volume (Change / Volume).

In the trading history , orders are displayed in chronological order – price, volume, time of the transaction.Market – orders in the whole market, Yours – your orders.

Market history can be useful in the same way as a stock glass – it shows the mood of the market at the moment: who is more, sellers or buyers. You can also see the most common prices in orders.

How to buy or sell a currency on the exchange (types of orders)

Analyzing all of the above, Vasya approached the most exciting moment – the issuance of an order.

We see in this block two sections: Buy BTC – buy bitcoin and Sell BTC – sell bitcoin.

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A little higher there are three tabs:

  • Limit – a limit order;
  • Market – market order;
  • Stop-Limit – stop-limit.

Limit order – an order to buy / sell at a specified price. We set the price ourselves in the Price column (by default the current price is in it) and the number of coins to be bought. As for the number of coins, to facilitate the solution, you can click on the buttons with percentages below – from 25% to 100%. That is, we can buy BTC by 25% – 100% of our deposit in USDT.

Below is shown how much USDT we will give for the bought bitcoin (or how much we will receive USDT, by selling BTC). After entering all the necessary figures, click on Buy BTC (Sell BTC).

Limit order for purchase – an application that we buy bitcoin at the price set by us or less than it (which is beneficial to the buyer). This order is placed at a price below the current one. It is used if it is believed that the price will first fall, but then after some level it will start to grow.

Limit order for sale – an application that we sell at the price set by us or higher (which is beneficial to the seller). Such an order is placed at a price higher than the market price. That is, in case of the forecast: the price will first rise, but then it will turn around and begin to fall.

Note that the trader commission for Binance is 0.050% – so much is written in the corner above the block of orders.

The market order looks like this:

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Here we write the right amount, and the price is automatically set – the one that is at the moment. The market is executed immediately after entering the exchange, in contrast to the limit. For execution, the best price from the exchange cup is chosen. Market are selected for quick purchase or sale.

Stop-limit order – an application for the purchase of coins at two prices: stop and limit. In this order there is a Limit field. We write the price Stop, the price Limit and the volume.

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We decrypt:

  • Stop-order to buy – at the exposed price or higher. That is, in the case of a forecast: the price reaches a given level, it continues to grow. It is exhibited at a price higher than the market price.
  • Stop-order for sale – at the exposed price or lower. In the event that we expect: the price will reach a given level and will continue to fall. Is exhibited at a price below the current one.

Stop-limit indicates two prices, which can be the same or different. If the market price reaches a stop-price, a limit order is placed on the exchange. As we remember, this is a deferred application, which is executed only at the specified price and in the event that there is a counter-order for sale.

Below, under the block of orders, there is a history of all our orders:

  • open (we just submitted an application, but have not yet received the desired one);
  • executed (we got what we wanted);
  • canceled (for some reason we changed our mind and clicked Cancel, canceled the application).

Conclusion

So, we together with Lentyaev understood the main principles of the trading interface of the crypto-exchange.They learned how to read charts and how to buy / sell currency. And that is not all! Working with the advanced version is also interesting in its own way. We are waiting for the analysis of coins, drawing up an investment portfolio and the commission of the most genuine crypto-currency transactions!

Read us, put a husky and share your opinion. If you have questions or clarifications on the text of the article, write in the comments. Thank you for your time!

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