January 22, 2024 New and veteran traders know how stressful and risky each crypto trade can be. The crypto market is volatile, after all. So, how can you ensure you’re ready for most market conditions, whether bad or good? A good starting point is using TradingView’s Paper Trading feature!
Paper or demo trading allows you to test some advanced strategies without any financial setback before you risk your own money on them. Or, if you’re a beginner, you can check out how buying and selling works on an exchange and try some basic trading strategies.
But let’s take a step back. We know that many of you have never heard of crypto paper trading or you’ve never thought about accessing it through TradingView. So, in this article, we’ll look at some of the fundamentals you’ll need to know about demo trading and why TradingView is a great option to try it out. Plus, we’ll cover some basic trading strategies you can try out now!
So, let’s start with the basics. If you’ve ever invested in the stock market, you’ve probably heard of paper trading. It’s as old as stock exchanges, and the name comes from how people traded back in the day.
Before big stock exchanges and crypto markets, folks would get a piece of paper and call out buy and sell points. It was an excellent way to practice trading before they got into the real deal, as they could identify daily signals and the odd trading strategy that’d help them make some good profit.
Going back to crypto paper trading, it’s not that different. Nowadays, though, most traders don’t have paper sheets. Instead, crypto exchanges offer a simulated trading market that moves like the real one.
Considering the volatility of the crypto market, demo cryptocurrency trading is the best introduction to new traders. And it has quite a few benefits for them.
The answer is simple. It helps you start trading without facing any of the risks that come with it. Besides that, it’s the same as live trading. Alas, let’s cover some of the main benefits of paper trading!
It’s a Great Confidence Booster and Training Ground
Everyone needs a slight confidence boost when they begin their trading journey. And a simulated environment will help you get just that! You see, demo trading on a cryptocurrency exchange will give you the rush to correctly predict the live markets without disappointing you if your choice is wrong.
Similarly, a simulated market is a training ground for new crypto traders. You can practice buying, selling, or even HODLing your crypto without spending a dime!
Now, this one’s for the more advanced crypto folks. As a beginner, your priority is to see how the market works and get your feet wet enough to start trading with a small budget. Experienced traders can, instead, use demo trading as a testing ground for their new strategies.
Once veteran crypto folks test out their new strategies for a few weeks, they’ll have a solid set of statistics to help them make the best decision according to the market’s current state. Sure, you can’t always predict the market conditions, and sometimes, things will spiral downward or upward. But these stats can help you make an informed decision, which could prevent bad losses.
So, this one’s a double-edged sword. Undoubtedly, not having to spend real money on paper trade is a plus. And you won’t need to stress out if you lose big because… it’s not your money, after all.
Of course, this comes with caveats when you start crypto trading for real. Emotions usually rule over inexperienced folks in the stock market and cryptocurrency trading. When you see your favorite crypto asset boom, you’ll be tempted to hold it until it goes to the moon, which might lead you to lose your profit altogether.
And, since you don’t feel these emotions during simulated trading, you’ll likely feel overwhelmed when you step into the live trading world. Still, this doesn’t take away from the positives of mock trading. So, let’s learn why paper trading with TradingView is the optimal choice for beginners!
TradingView is more of a social network for traders and investors than a crypto trading platform. A super-charting platform where the world charts, chats, and trades markets. Still, it allows you to engage in simulated trading with all kinds of crypto assets, and it comes with its fair share of trading signals and charts. So, let’s see why we believe it’s the best crypto trading platform for paper trading.
Reputable and Full Of Useful Insights and Information
TradingView is quite the leader in the crypto world. New and experienced traders gather around the platform to share their insights and information, as well as their strategies or signals.
That’s what sets TradingView apart. It’s a powerhouse of knowledge. Access to real-time data, extensive charts, and myriad analytical tools empowers you to make well-informed trading decisions.
TradingView is designed to keep you at the forefront of the crypto market, equipping you with all the necessary tools to analyze trends, forecast market movements, and stay ahead in your trading game.
The one feature that makes TradingView stand out is that starting paper trading won’t cost you anything. In contrast, most cryptocurrency exchanges require you to sign up to their platforms to mock trade fully.
Of course, you’ll still need to register on TradingView, but it won’t ask for your personal information besides an email, password, and first name.
Free access to such a robust platform is rare, and TradingView offers it, ensuring you can test and tweak your strategies as much as you need without worrying about subscription fees or hidden costs.
So, you’re ready to set up your paper trading profile. Let’s start on the basics and show you how easy it is to open up your account.
When starting with paper trading, you must familiarize yourself with fundamental trading strategies. You can later use these strategies alongside some automated crypto trading bots! You can even utilize our Cornix bots.
At Cornix, we have a set of user-friendly automated crypto bots that will assist you in your trading. Once you’ve set some strategies in stone, you can use our bots to trade 24/7 without facing FOMO and still make a good trading decision, regardless of the market conditions.
Anyway, back to the strategies:
Fundamental Analysis involves evaluating cryptocurrencies based on their intrinsic value. You’ll consider factors like market demand, prospects, technology, and the team behind the crypto. And, of course, if Elon Musk mentioned it in his latest X post. It’s about understanding the ‘why’ behind a cryptocurrency’s potential growth.
In contrast, Technical Analysis studies historical price movements and uses this data to forecast future price behavior. For example, you can expect Bitcoin to boom after each halving. This analysis also involves analyzing charts, patterns, and various indicators, which you can accompany with our automated TradingView bot.
Our TradingView bots can create trades based on pre-determined alerts and strategies. You can build your indicators or follow an expert’s set. As we’ll see below, you can also use our other bots for Dollar-Cost Averaging or Grid Trading along with your TradingView bots to automate your trading.
Dollar-Cost Averaging (DCA) is a strategy where you invest a fixed amount of money regularly, regardless of the market’s condition. This approach helps reduce the risk of investing a large amount in an unfavorable market condition. It’s perfect for beginners because it instills discipline and reduces the emotional aspect of trading.
And that’s where a dedicated DCA bot will make your life easier. Our smart DCA bots buy low and sell high. The bot will automatically buy as the price goes lower and sell when the value of your crypto gets higher. After that, it’ll open up a new trade with the market value being the previous selling price.
Grid Trading involves placing buy and sell orders around a set price at predefined intervals. The buy order will be even lower when you sell at a low price. In the same sense, when you buy at a high price, the sell order will be higher, and so on. Since crypto price fluctuations are common, this strategy helps you thrive, using volatility as your best friend.
This may need to be clarified for beginners, so a bot that automates this process will help! Our Grid Trading bots will save you time and keep the emotions out of the trading process while buying as the price goes down and selling when it increases. And they never stop trading!
There’s no doubt that simulated trading is the gateway to anyone’s journey in the crypto trading space. And TradingView has the best one! TradingView’s Paper Trading feature offers a safe, risk-free platform for new and experienced traders to develop and test strategies.
And don’t forget about us. With TradingView’s incredible platform and the Cornix automated crypto trading bots, you can trade effortlessly without worrying about missing that spike at 2 am!
