Hi, I'm new here, I have read lots about crypto and how to trade on Binance so I am currently digesting the basics, and I've successfully made a few small trades that made a small amount of cash (I was very careful and watched the market and traded with a small amount to get used to it).
My question is - what happens if I make a successful trade with Ethereum, then I need to convert it back into Bitcoin, but in the meantime the Bitcoin price plummets etc.
With regards to scalping, if someone has GBP in Binance, then they convert this into Ethereum, do a trade and earn even just £5, what would a trader do? Do they keep it as Ethereum until the price starts going down, or change it into another coin they can see going up, or change it back into GBP and withdraw it?
Obviously there are a myriad of trading strategies, however I would like to try scalping first. I am trading small amounts whilst I learn.
I signed up to Binance before GBP could be added to it you see, and I used to have to add GBP into Coinbase, buy Bitcoin, then use bitcoin to buy Ethereum in Binance, so it got me thinking about the rates going up and down and switching currencies and how not to make a loss, and also thinking about platform commission charges.
What do traders commonly do in these situations?
Any advice would be appreciated.
Many thanks
Best way to do such things is, to take your own currency which might be GBP as the base currency which means it will be the measurement currency for you and the base currency as well. This means after the end of every trade you will be in GBP and being in GBP doesn't mean you are in a trade. Now all you have to do is buy bitcoin by giving up your GBP and then if you earn and want to finish the trade you convert to GBP and then you just don't look at the price of Ethereum no matter which direction it goes. Same will be donee for bitcoin or other currencies, this is how you will be able to manager all this otherwise things will be too haphazard and you will be too confused.
