The cryptocurrency market is developing very rapidly. You can expand your investment portfolio thanks to new tokens that are constantly appearing. Today we will talk about Chiliz. What kind of currency is it, what are the main trading techniques, and how profitable is buying and selling cryptocurrencies?
Chiliz — what kind of currency is this
Chiliz is a sports cyber currency. It was initially created as a digital asset for Socios’ platform. It is a marketplace where sports fans can buy tokens, thereby supporting their favorite team or athlete.
CHZ runs on the Chiliz blockchain, which is built on Ethereum. The token appeared on the cryptocurrency market in 2018. Since then, fans of many famous teams can buy assets and participate in the club’s life.
Chiliz transactions take place on a private blockchain and are protected by Proof of Authority technology. Smart contracts are behind CHZ, thanks to which all transactions occur as quickly as possible.
Basic Chiliz trading techniques
CHZ trading is available 24/7. It would help to choose a cryptocurrency exchange such as WhiteBIT and specify the CHZ USDT pair and the required number of coins. But it would help if you did not think that everything is so simple. Successful cryptocurrency trading requires the right strategy. It will help you get the most out of the deal.
The long-term strategy is considered the simplest. You buy a certain amount of Chiliz and keep it. When the value of the asset increases, you exchange it for another cryptocurrency or fiat.
There are also short-term trading strategies. They allow you to profit from market fluctuations. Traders use:
- stop-loss;
- take profit.
In the first case, you make a profit when the value of Chiliz falls to a certain level. In this way, you can insure against significant losses if the asset price starts to fall.
Taking profit works the same way. The main difference is that tokens are automatically sold when their value reaches a certain level. This technique is relevant when the investor does not have time to constantly monitor the market to catch the highest price.
Traders often use particular trading bots. They cannot do all the work. However, you can automate specific processes to generate more profit while spending less time.
Some tips for successful Chiliz trading
There are several tips for successful trading on WhiteBIT. It is worth using them to avoid losses and get the maximum profit from the deal:
- start trading when you are confident in your abilities;
- do not operate with large sums;
- learn to adapt to market conditions;
- break a large target into several parts;
- keep a trading log.
A keynote for novice traders: carefully study the terms and conditions of cryptocurrency trading. It can take a long time. But careful study of the techniques and fundamentals will help you build an investment portfolio and make a profit.
It is worth remembering that trading Chiliz and other assets are a risk. Therefore, it is essential to study not only the basics of trading. You should pay attention to analytics and be able to determine market trends independently. For this, it is necessary to follow all the news of digital assets carefully.
Regardless of whether you are new to cryptocurrency trading or have been trading for a long time, don’t get carried away. It will only lead you astray and make you regret spontaneous decisions.
