December 4, 2021

CEX.IO company blog | From hodling to trading: how to make money trading cryptocurrency

According to some studies *, each ruble invested in military-technical cooperation is capable of generating two rubles arrived. Thanks to this ability,bitcoin was named the most effective investment instrument in Russia.

At first glance, everything that is required fora competent investment - to buy cryptocurrency and forget about it for a while. Following this strategy, many market participants develop mainly along one path - “buy and hold”. But the modern market is creating more and more opportunities to dynamically make money on cryptocurrencies, on short and long periods of time, on an increase in prices and on a decline.

Not by hodling alone ...

The most common cryptocurrency earning in Russia is hodling strategies.

Hodling involves holding the cryptocurrency ona long period of time in the hope of selling it later at a higher price. In this case, it does not matter which wallet the cryptocurrency is stored in, and the owner himself can use it at any time.

New conditions dictate new approaches to investmenton the crypto market. Recently, derivatives trading has been gaining popularity, which has one big advantage: even if you have a small amount in your hands, you have the opportunity to enter the market, make a deal, and at the same time make a good profit using leverage. The most common form of such derivative trading is the purchase and sale of futures and CFDs.

The essence of futures and CFDsis quite simple - you do not buy the asset itself (cryptocurrency), but conclude a contract in which you earn on the rise or fall of quotations. If you have correctly predicted the price dynamics of a particular cryptocurrency, then the difference between the opening and closing prices, adjusted for the size of the transaction, will become yours. At the same time, the trader himself does not need to have a certain part of bitcoins or other coins available. The CFD currency may differ from the asset being traded. The financial result is tied to the difference in prices at the moment of opening and closing, but not to the currency itself, as such.

How to become a trader: step by step instructions

The most difficult question for a novice trader is: "Where to start and how much capital is needed at the start?"

We answer:

1. Choose a suitable platform for margin trading.

Professional market participant with goodreputation is one of the important components of effective trading. Do not rush to make a decision after seeing bright advertisements on the Internet. Carefully study the conditions, reviews about the company and only then agree to cooperation.

2. Highlight the amount you are willing to lose

First bidding attempts don't always endsuccessfully, especially if you do not have the necessary skills in forecasting and risk management. Therefore, you can start trading cryptocurrencies with a small amount of $ 200 - $ 300.

3. Study the market situation

First of all, you need to carefully study the marketcryptocurrencies, features of a particular coin, analyze the situation and its news background. This will help to more accurately predict the value of the cryptocurrency, and, therefore, get more profit.

4. Assess your appetite for risks!

Trading with leverage involves certain risks. A sufficient stock of knowledge and a proven platform for margin trading will help you more confidently choose profitable trading strategies / assets.

Before you start, learn the pros and cons.

Pros and cons of CFD trading

Like any other trading strategy, margin trading has its pros and cons that you need to be aware of before starting trading.


1. Easy start

Most of the margin trading platforms are generally easy to manage. You can start trading in just a few clicks.

2. Trading with leverage

One of the most significant advantages of the margintrade can be considered the presence of leverage. That is, in fact, a trader can open positions for an amount that significantly exceeds his starting capital. For example, if the platform provides a leverage of 1:10, then a trader can open a position for $ 5,000 with only $ 500 available. Naturally, the profit from the transaction will be several times higher than the starting capital.


The main disadvantage of margin trading isrisks. If you are new to trading or do not yet have the necessary skills, then the risk of incurring losses increases dramatically by opening positions with large leverage. Risk management should be at the center of any trading strategy.

Ready-made solutions for margin trading

Understanding the basics and benefits of margintrade, it makes sense to analyze their action in practice. It should be noted that the terms of trade and the list of services provided between providers vary significantly.

For example, CEX.IO Broker provides a wide range of services through its own derivatives platform for trading digital assets based on CFDs.
CEX.IO company blog | From hodling to trading: how to make money trading cryptocurrency

It is very important to note that is part of a group of companies regulated by the CEX.IO cryptocurrency exchange, so clients with just one login and a wallet for storing cryptocurrency get access to two platforms at once: direct trading and CFD trading.

Currently, seven pairs are available on the platform 24/7: BTC / USD, BTC / EUR, ETH / USD, ETH / EUR, ETH / BTC, LTC / USD, LTC / BTC.

In addition to the advantages of margin trading already listed above, the CEX.IO broker provides additional services:

- the ability to have several accounts, where you can use different approaches to trading;

- the ability to trade each pair on a separate account in order to better understand how the instrument works;

- the possibility of using cross andisolated margin. Cross margin allows using the profit of one position on a trading account to meet the margin requirements of another position on the same account. Isolated margin means that each trading account has its own margin levels that do not affect each other.

- the ability to replenish the account with BTC, ETH, USDT;

- no commissions for deposits and withdrawals;

- the presence of leverage allows you to trade even with an insignificant budget;

- a wide range of tools for technical analysis and price forecasting;

- simplified registration in three steps.

CEX.An IO Broker or another platform for margin trading that provides a similar range of services creates conditions for new forms of working with the crypto market. In the current environment, it is obvious that one should not dwell solely on the hodling strategy.

It is necessary to study and use new trading tools that not only simplify the opportunity to enter the market, but also increase the potential for return on investment.

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