Book Image

Zero to Hero in Cryptocurrency Trading

By : Bogdan Vaida
Book Image

Zero to Hero in Cryptocurrency Trading

By: Bogdan Vaida

Overview of this book

In today's fast-paced digital age, cryptocurrencies have emerged as a revolutionary financial asset class, capturing the attention of investors and traders worldwide. However, navigating the world of cryptocurrency trading can be overwhelming for beginners. Zero to Hero in Cryptocurrency Trading acts as a guiding light to navigate this complex realm. This comprehensive guide to cryptocurrency trading empowers you to go from a novice trader to a proficient investor by helping you implement your own trading strategy. As you progress, you’ll gain structured trading knowledge through hands-on examples and real-time scenarios, bolstered by trading psychology and money management techniques. You’ll be able to automate your manual trades with an algorithm that works even while you sleep. You’ll also benefit from interactive teaching methods, including screenshots, charts, and drawings to help decode market operations and craft your unique edge in the dynamic crypto world. As an added bonus, you’ll receive ready-to-use templates to identify useful indicators, test your strategy, and even maintain a trading journal. By the end of this book, you’ll be well-equipped to trade cryptocurrencies and automate manual trading to give you an edge in the markets.
Table of Contents (13 chapters)
9
Chapter 9: What’s Next?

Long versus short

When we open a position that we expect to rise in value, we do it by opening a long position, going long or “longing.”

When we open a position that we expect to fall in value, we open a short position, go short, or just short (a token).

Even though, theoretically, we can go in both directions at the same time (and some risk management strategies do this, for example, hedging), we usually go either long or short.

When we issue a long order, the CEX buys the token for our account. For example, we can send a market order to buy one BTC at market value and, after execution, we’ll be owning (or rather our account on the CEX will be owning) one BTC.

When we open a short position at market value, what the CEX actually does is buy the token, and then instantly sell it at the price it bought it. When we close the short, the CEX rebuys the token at the new price, and we get the difference.

For example, we short 1 BTC at market value, let...