It seems that a long time has passed since the time when Wall Street was spitting millionaires like pipes. The 80’s were a great time for stock market investment; anyone could invest in assets and anyone with a little knowledge could make much of that investment. But do not think that all past time was better. Investment remains one of the most effective ways to make money work in our favor and with the heyday of cryptocurrencies, a new opportunity opens up for trading and that is why we are going to explain you with this guide the basic aspects of trading with Poloniex.
The only thing that has changed with respect to the 80’s is the way in which it is invested. As everyone will know, now we have the brokers; platforms in which we can invest online through any device connected to the internet, no matter where we are. One of the most famous brokers of the investment in cryptocurrencies is Poloniex, a platform with an interface that is easy to understand and offers many freedoms to trade between digital currencies.
In this guide we are going to teach you the basic aspects of trading in Poloniex divided into three points: deposits, description of the interface and trading.
How to make a deposit in Poloniex
The registration in Poloniex is not different from the one you make in any other broker that is why we skip that part and go directly to the action. However, before making any movement on the platform it is necessary to load funds to it. To make a deposit what you should do is:
– We go to Balances and later to Deposit and Withdraw; in this section we will see how much money we have in the account and what is our withdrawal limit and daily deposit. By default, this limit is $ 2000, as we are operating this is expanded. In this section we will also see a list of all the currencies with which we can trade within the platform, as well as the data to make the deposit to Poloniex.
– Deposit: once we have the data to make the deposit in the Poloniex account, what you must do is go to your wallet and execute it. The deposit will not be credited instantly, it is necessary to be confirmed 45 times. Usually this will take a few minutes. We can follow the deposit status by entering the Balances section and then History.
Once the deposit has been credited we can begin to carry out operations in Poloniex. But first let’s know a little about its interface.
Description of the Poloniex interface
If we must highlight something from the Poloniex interface, it is the organization and strategic location of all its elements. We are going to show you which are the most important resources you have to trade in this platform.
We have the menu bar, in it there are different menus by which we can navigate on the platform. In it are the following sections:
Exchange: in the Exchange section we have access to information about the currency exchange. We are going to observe a graph in which the volatility of each currency is appreciated. You can filter this graph according to the time to observe the behavior of the cryptocurrency during the last week, the last day or the last hours, even minutes.
On the right side of the screen appears the “Markets” table where we can see the different markets for each cryptocurrency. If you continue down the main page of “Exchange” you will find a table with the history of all your movements in the market and three tables; Sale, purchase and loss limit.
– Sale: in this box we can buy currencies for trading indicating the amount to buy.
– Purchase: in this box we can sell the currencies that we buy.
– Loss limit: in this box we can control the limit of losses, so that if a cryptocurrency falls abruptly, the system will protect our funds.
Margin Trading: in this section we will find tools to perform leveraged trading with Poloniex at x2.5. However, for this it is necessary that someone “leverage” us. Trading with leverage can be a double-edged sword because as profits multiply, so will losses in case of a bad decision.
Lending: this section is a complement to the previous one. In this part we can get loans within the platform. Upon entering it we will see a list of available loans that other users of Poloniex put at our disposal. It is a good financial tool but Poloniex applies a commission for each loan and we must take care that the interests are not so wide.
How to do trading in Poloniex
Now that we know how to make a deposit and we know a bit about the interface, it is time to make our first trading with Poloniex.
What we should do is simply select a currency in the “Market” in the “Exchange” section. Once we do this, we will be taught all the cryptocurrencies with which we can make a change. The broadest market is bitcoin (BTC) but we also have ethereum (ETH) XMR and USDT. These would be the main currencies of the platform and we can identify as secondary currencies all those with which we can trade.
Once we have selected the currency for trading, we must select the currency we want to buy with it. We do this by clicking on it in the “Market” section. Afterwards, the main graph will be changed to show us the behavior of the selected currency and it will also show us the value of the same according to the main currency of the market. That is, if we are in the BTC market and we are going to buy ETH, we will be shown the value of the ETH in BTC. Just below the graph will appear a purchase window and a sale window.
We only need to place the amount that we are going to acquire, for example, ethereum in the purchase window and that’s it. This type of operations, unlike the deposits, if they are credited instantly by subtracting a feed of less than 2% applied by the broker.
To sell the process is exactly the same, only instead of using the shopping cart, we will use the sales one that appears below the main graphic. We place the amount of the currency that we are going to sell and we are credited with its equivalent to the value of the main currency of the market.
Obviously to start earning money it is necessary that you have financial knowledge about the behavior of the cryptocurrency markets to take advantage of the moments of purchase and sale. However, it is not an impossible task. With a little study time you can begin to operate knowing better the risks of each market and taking advantage of them.