Greetings to each and everyone on this great plaform known as Blurt.blog for given each and everyone of the opportunities to share our contents here. Indeed I am grateful to @blurttradinghub for the wounderfu lecture it has shared which I enjoyed going through the lesson as often as possible. However, after gaining an understanding on the topic; "Cryptocurrency Opportunity". Today I am here to share my own knowledge as a homework post. Let's get started...
Explain in your own words cryptocurrency arbitrage
The words cryptocurrency arbitrage is a very popular words in the crypto industry which mean buying cryptocurrency at low price and selling it at a higher price. But that is not just what the words cryptocurrency arbitrage stands for. However, I will be explaining cryptocurrency arbitrage in a way that even beginners in the crypto industry will understand.
Cryptocurrency arbitrage is the type of trading strategy where traders capitalize on slight price discrepancies of a cryptocurrency across different markets or cryptocurrency exchange. In a nutshell, cryptocurrency arbitrage is process of buying and selling cryptocurrencies in different markets. For example one may see that the price of Bitcoin on Kucoin exchange is very low compared to that of Binance exchange which is high. Now this is when arbitrage trading come in when the trader buy the Bitcoin at a low price in Kucoin and sell it at higher price in Binance exchange.
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Using another example where the price of Ethereum is $3,200 on Binance cryptocurrency exchange and $3,400 on Roqqu. In this case, cryptocurrency arbitrageur might consider buying Ethereum on Binance and sell it on Roqqu to gain $200 as a profit.
There are a lot of opportunities that is associated with arbitrage trading if a trader or Investors really understand how it works and the good platforms and market for arbitrage trading.
Cryptocurrency mining
When discussing about cryptocurrency mining the words verifying transactions, nodes computers are most of the words that one will be relating with. Cryptocurrency mining is simply the process where computers are known as mining rigs or nodes, validate blockchain transactions for certain cryptocurrency, in other to receive a mining reward for the effort of computation.
Cryptocurrency mining requires the used of adequate hardware and software resources and even power supply before mining to be successful. This is because of the too many computation that is involves and miners received a mining rewards for their efforts in solving problems.
Explain any method of trading Cryptocurrencies
There are several method of trading cryptocurrencies be it decentralized or centralized exchange. However, here I will only discuss about spot trading which one can make use of Limit orders, spot limit or market order.
Spot trading is one of the method of trading cryptocurrencies that I love so much. In spot Trading trader can make used of limit order, spot limit or market order. The market order is the type of trading in spot trading that allow trader to buy the cryptocurrency at the current market price. (I.e buying cryptocurrency at the current market price). In the market order trade is executed immediately, where as in limit order an spot order trader aren't executed immediately. It is the type of order where trader set he own price and the trade can only be executed when it hit the price that is set by the trader.
Below is the step for trading any of the affomentioned trading;
- Go to your Binance exchange
- Click on Trade and search for the Crypto that you one to trade. (e.g ENJ/USDT)
- Choose the type of trade that you wish to trade on, like Limit, Market, Stop Limit or OCO (One Cancels the Other).
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Cc:-
@blurttradinghub
Note: If you choose Market order that means you're either buying ore selling your crypto at the current market price.
Cryptocurrency Arbitrage, is one of the cryptocurrency trading strategy that I love using to make little profit from my Investment. All thanks to @blurttradinghub for this wonderful lesson which has remind me that arbitrage trading is always the best type trading for both weak and strong traders.