and other cryptocurrencies have grown significantly in recent years. However, with the increase of their value arises a fundamental problem for users: “How to block profits without bank transfer?” In this article, you will discover the different options available to you when it comes to blocking gains in cryptocurrency without bank transfer. Bitcoin There are two options available to block the gains from trading markets. They include: Transfer funds to a traditional bank account, or Move funds into another digital currency like Ethereum to Bitcoin As with most things in life, each of these options has its advantages and disadvantages. But you do not have to worry; this room is all bare to provide you with enough information to make the right choice. Option 1: Transfer Funds to a Conventional Bank Account Now, assuming you’ve just bought Litecoin and made some profit, you’ll want to play safely to protect your investment. To do this, you will want to go out at a profit. At the very moment you are considering your next move, you find that the ETH / USD is retiring at nearly $400. You will want to take advantage of the situation and enter as it approaches this critical level. However, you are facing a dilemma. If you cash your LTC / USD position and transfer funds to your traditional bank account, it may take a few days before you can make another ETH / USD transaction. For example, if you buy you’re Litecoin through a digital exchange platform like Coinbase and you transfer it to other exchanges to try to exchange it for other cryptographic currencies, you will have to follow the following route: LTC> BTC> Coinbase> Bank Account> Other Change Several days would pass before this process was completed. After that, returning your money in exchange, allow you to rebuy LTC / USD will take between two to four days. As the cryptocurrency market is evolving at a rapid pace, this could mean missing many trading opportunities. It may be that profitable opportunities are not there for you when you are ready to reinvest. Also, linking your bank account to cryptocurrency exchange platforms can be a significant problem, especially for US-based users. Recently, US banks have not been very friendly with their customers who finance their commercial cryptocurrency accounts with their bank accounts or cards issued by banks. Bitfinex has just stated that US customers would not be allowed to use their bank accounts to transfer funds to their accounts directly from the platform. It means that users will have to execute cryptocurrency transfers. Such decisions would undoubtedly have an impact on the ability to take advantage of market opportunities on time. It is a setback for people who have wondered how to turn Bitcoin into USD, for example. Option 2: Move your funds into another cryptographic currency Another option that is available to you is to turn your money into crypto. For example, you could transfer all of your Ethereum holdings into Bitcoin, as it is by far the most active and most liquid digital currency. Nevertheless, this option is not without risks. Cryptocurrencies are very volatile, and bitcoin is no exception. Convert your assets into Bitcoin and prices may drop before you realize it. In January 2017, for example, bitcoin prices dropped by nearly $ 200 in one hour. It suggests that transferring your profits to another digital currency could still be turned against you because you could lose substantial amounts. Other Options Available Here are other options available to block profits without bank transfer. Transferring Earnings in Fiat Currency This option allows you to preserve earnings and stay on the lookout for opportunities. Some trading platforms enable users to exchange their cryptocurrency against their local currency. It means that you do not have to withdraw your funds from your traditional bank before you can reinvest. Bitfinex is one of these trading platforms. There, you can trade various digital currencies from your US account without having to use your traditional bank account. However, not all trading platforms support this feature, which poses another challenge for active cryptocurrency traders. So you may find the next option more viable. The Route Tether USD Route Few people know, but Tether USD, a cryptocurrency, is pegged to the dollar. The asset may not offer a lot of trading opportunities like a digital coin, for the moment at least, but it can help you block your earnings while keeping things flexible enough to allow you to enter the market at any time. Price stability makes it the ideal option for those who want to lock in gains while waiting for the next trading opportunity. Those who intend to trade digital currencies actively will find it advantageous to locate FX platforms where they can trade the USD Tether (USDT) with any other cryptographic currency of their choice. However, if you do not see the currency you want to trade, you can still convert Tether USD to Bitcoin, then convert Bitcoin to your preferred currency. Nevertheless, it would make more financial sense to trade directly with Tether USD, as this will save you money on transaction costs. One of the main risks associated with Tether USD is that each link is not supported by $ 1 as shown on the Tether website. Even if it is true to the site claim, each attachment is backed up by $ 1, so a cryptocurrency bubble could have severe implications for the holders because there might not be enough liquidity in the Tether cryptocurrency and they can collapse. Besides, the lack of transparency of the currency is causing more and more concern. It can reduce the public’s interest in holding the currency or shutting it down by the US government. Therefore, whichever option you choose to choose, you will need to carefully examine specific variables and see if they will hinder your trading aspirations. As always, you should make sure to take profits when necessary for fear of burning yourself. Means of Managing Risks during Trading Cryptocurrency Risk management is a crucial element that any trader should seek to adopt if he wants to succeed. While blocking your profits allows you to exit the market with your winnings intact, having an active management strategy will enable you to continue trading over the long term. Therefore, this is something you need to take into consideration when trading a cryptocurrency like bitcoin. Therefore, you should do the following to minimize your risk exposure: 1) Protect yourself against counterparty risk You must consider counterparty risk when making trading decisions. Cryptocurrency exchange platforms carry some counterparty risk. It is common knowledge that transactions involving cryptographic currencies such as bitcoin are not reversible. So once you lose your coins to the fraudsters, you cannot recover them. You must be careful who you are dealing with? It’s recommended that you only deal with companies or people you trust. Another problem is that many cryptocurrency exchange platforms have not deployed enough cybersecurity mechanisms to make them vulnerable to hacking. Many platforms are hacked and lose vast amounts of money. Therefore, you should seek to reduce your risk of loss by doing the following: Avoid leaving funds in trading platforms when you are not actively trading. Do not deal with more than 30% of your wallet. Diversify your digital currency on different trading platforms or automated cryptocurrency trading system. Available free to utilize, the can be used with a lot of other significant contract-for-difference (CFD) agents that permit for cryptocurrencies, for example Bitcoin. The technologically innovative software makes it possible for traders to gain access to many configurable settings, including loss/stop, technical indicators, trade dimensions, currency management, and cryptocurrencies.. automatic cryptocurrency trading program 2) Trade in good market conditions Find the ideal market for your trading strategy. For example, automated scalping works best when markets are stable, while swing trading is most effective when trends are stable. Therefore, it is crucial to determine which strategy is best for you and the perfect market conditions. 3) Plan Your Exit The key to a successful profit block is to have an active exit strategy. Determine the critical levels of support and resistance and plan your progress. Examine the risk/return ratio and determine how you can make a profit. You can either increase your position when the trends are healthy or raise it during the course to block gains. Also, it is recommended to place stop orders to prevent markets from moving against you. However, it is crucial that you know that stops do not work well when prices change too fast. 4) Avoid using excessive leverage Although using the margin helps to increase the size of the order and gives you additional flexibility, you should be careful not to use it too much. The use of excessive leverage may stifle your operation, which may result in a loss of all capital in the event of forced liquidation. Some trading platforms provide leverage up to x100, in which case a 1% move can cause severe damage to your account. The recommended advantage to use is x3, as it allows you to increase earnings and gives you enough comfort to leave a bad trade. However, you can disregard this rule when scalping shorter periods when markets are volatile.
