Beginner's Crypto trading question, how does it work?

Beginner Questions
1

Hi, I’m new to crypto forex trading. Could you answer a basic question for me?

I have a bitcoin to trade with. If I deposit it to my traders account, i’m using evolve markets does this mean I can I buy AND sell with it, if you know what I mean?

EG - say the bitcoin price is $9000, I have one bit coin… do I still buy lots and speculate on it going higher, is it using a leverage system? I already have the bitcoin

I mean it will make no sense, to trade a bitcoin on it going higher, by owning the bitcoin I am essentially speculating on it going high by just owning it. Basically how can I buy bitcoin with bitcoin and make money on forex, surely it will only work selling or is there something I am missing. The Demo account seems to allow me to set trades buying bitcoin and speculating on it going higher… but I already have the coin so it would have risen anyway.

However if I sell, it makes sense then, as I can buyy back at a lower price.

Basically my question is, how does it work when speculating on the bitcoin price rising when you already have the bitcoin?

I know I’m probably asking a basic question and missing a fudenmental pillar of trading, therefore i’m not planning to go live yet with my funds. I’m very much at the start of my journey.

2

Are you asking if you can fund an account with cyrpto currencies to trade forex currency pairs, or something else?

Does your evolve markets account allow margin trading? With margin trading you can go "short"and “long”.

If your crypto account doesn’t offer that, it’s probably just a spot exchange account, that lets you buy and sell various currencies, where you actually take . To make money with this type account, it’s usually a buy and hold strategy, where you’re expecting the price of the currency to go up. You buy when it’s lower, sell when it’s higher for a profit, and then try again after the price retreats, once again expecting it to go up.

Here’s some reading from Kraken exchange. Not sure where in the world you are, but they support US cleints and margin trading.

https://support.kraken.com/hc/en-us/articles/203325683-Differences-between-Spot-Exchange-and-Margin-Trading

And some reading on margin trading

3

If you already have it, then you can sell it when it’s higher than your original buy price and then buy again when the price drops! I don’t trade crypto though so that’s just my assumption. :sweat_smile: