DOT/USD: Trade DOT to US Dollar
DOT/USD (or DOT to USD) currency pair represents DOT as a base currency, and US Dollar - as a quote currency. Which means DOT is quoted against USD, by indicating the amount of USD needed for 1 DOT token purchase. All the changes in DOT price in Dollars over time are reflected on the DOT/USD chart.
How to profit from trading CFDs on DOT?
Contracts For Difference (CFDs) trading is a kind of making money on сryptocurrency price movements by opening and closing positions. СFDs trading allows you to make money on both rising and falling market trends, which is the main trait of such trades. The main goal of such trading remains constant - to place orders and gain profit if the price movement was in the right direction (according to the order you placed). It doesn't matter in which direction the market is moving - the main thing is to be 'one step ahead' and make the correct predictions about what the market situation will happen next.
How does a CFD on DOT work?
One of the differences of CFD trading compared to Spot trading is that you don't actually need to own the asset to trade it. The mechanism of operations on CEX.IO Broker is such that you need to choose BTC, ETH, or USDT as the main account currency. And, then, you’ll be able to trade not only assets you've deposited but also all pairs presented on the platform, be in DOT/USD, XLM/USD or any other. This CEX.IO Broker function does not require you to buy many different cryptocurrencies but allows you to trade them.
Choose the needed pair and open Long positions if you anticipate the base currencies price will go up and Short positions if down.
What options are available for DOT CFD trading?
Every CEX.IO Broker user can use 2x-100x leverage when making trades. The leverage allows you to operate with more capital and gives the potential to get higher profit. But it is important to understand that with the higher leverage, risks increase too.
For the convenience of users, the platform provides different types of orders. And, perhaps the main plus, each user can simultaneously open up to 10 trading accounts and test different independent trading strategies at each of the accounts in order to minimize risks. These make CEX.IO Broker a perfect platform for experimenters, who like to try out various approaches to trading.
What can help make trading CFDs on DOT more successful?
The platform features a cross and isolated margin to minimize risks. All transactions within one trading account are linked by cross-margin, while transactions between different trading accounts are completely isolated.
This allows you to implement the most daring trading strategies and decisions without a risk that losses from one account “eat” the profits from another.
How do I start trading DOT with leverage?
There are no strict requirements for margin trading on CEX.IO Broker platform, you can start quickly! Create a trading account (if you don’t have it yet), add funds, choose suitable leverage and that’s all - you are ready to start trading. Of course, only if you understand how the tool works, or, otherwise, it may not work for you (will lead to losses).
If you are not sure yet that you are ready - try a free demo account that simulates the real situation on the market.
Why trade the DOT/USD pair?
Trading each pair requires an individual approach because the conditions for different pairs in the market are by no means the same. Just to have a look at the chart of a particular pair and start mindlessly trading is not a good idea. You need to make an analysis of the current market situation and to study information about the asset itself. It is very important to understand what the coin is, what makes it profitable for trading, and what is happening in the project in general. Random trading operations can work once or twice, but believing that such trades would be constantly profitable is fundamentally the wrong strategy.
CEX.IO Broker: a cryptocurrency platform working via the derivative instrument for efficient trading in numerous currency pairs
There are many platforms for margin trading cryptocurrencies and this is not even about a competition between market leaders and giants. Taking into account many years of experience in the market, the CEX.IO ecosystem’s team adheres to the rule "to do well or not to do at all". CEX.IO Broker’s work is thought through the smallest things and is filled with functions that satisfy both the needs of beginners and demanding cryptocurrency experts. But, we are not going to stop there and will improve the platform as long as it is available on the market. Сreate an account and enjoy more flexible trades.