Disclaimer not financial advice. Not an expert. Anyone trading Chia or other cryptocurrency does so at their own risk.
Spot trading, Bull market, Pump and dump, oh the joys of trading!
But what do they mean? For a full list check here
Understandably most readers of this blog will already know most of the basics of exchanges so these first few entries in this series might not necessarily be for you; however in order to run one must first walk.
There is a lot to grasp when going about trading Cryptocurrency for the first time; much of it is tossed at you without any warning. The graphs alone are enough to turn most people off, especially if you don’t understand them. Hopefully by understanding the art of the deal from the ground up we can establish well informed chia traders going forward. Not to mention opening up new/old Farmers of chia to the benefits of something other than “hodl”. No better place to start than at the start.
What is a Crypto exchange?
An exchange by simple definition is the act of giving one thing and receiving another.
A crypto exchange is a marketplace that allows an individual to trade cryptocurrency for other assets, generally these assets are fiat(real money) or another cryptocurrency. Another term for a crypto exchange is a digital currency exchange(DCE) or more commonly a crypto marketplace. Examples of chia exchanges would be Kucoin, Okex and Huobi.
Crypto exchanges list “pairings” of one digital asset for another asset, the most popular pairing coins being BTC (bitcoin) and USDT (tether), but there are many others depending on what exchange you use.
Eventually when it comes time to cash in our Chia coins, knowledge of what an exchange can do will be an asset in getting the best dollar value for your hard earned farming rewards.
Be fair, warned!
Trading (even simple selling) comes with risks and certain functionality within these exchanges (example futures trading) carries extremely elevated risks. Understand what you are doing and like gambling never trade more than you can afford to lose.
Going forward in this series we will cover various topics starting from the basics; to intermediate trading techniques. As someone who is relatively new to cryptocurrency myself, hopefully through these posts we can continue to learn together the ins and outs of the chia markets (exchanges) and simplify the experience for all chia users to enjoy.
Update: Now that you have finished part one, check out part two here.