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What is Spot Trading? How can I make money from the crypto spot market? - YouTube
Channel: Phemex
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[Music]
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the best way to trade
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cryptocurrencies such as bitcoin is by
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using an exchange platform
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before we learn about exchanges make
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sure you watched our video about crypto
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wallet a cryptocurrency exchange
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platform
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is a business that allows you to buy
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sell
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and trade digital currencies fumex is
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the fastest crypto exchange on the
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planet providing
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both spots trading and derivatives
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trading
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my name is victoria i'm part of the
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femax team and today i will show you how
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to trade this portrait on
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femax and how you can make money from
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cryptosport market
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before we start this video please turn
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on the alerts subscribe to our channel
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like this video and share it with your
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friends at the end of the video
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we will ask you questions about today's
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topic
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where you will be able to answer and win
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some trading bonuses on
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femax let's start what is crypto spot
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market
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a spot market is a service like the
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femex cryptocurrency exchange
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where you can trade that is buy or sell
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your cryptocurrencies with other users
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every transaction settles immediately or
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on the spot once it's filled hence the
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name
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all spot markets are composed of buyers
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sellers
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and an order book buyers enter the
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market with a specific bid
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or buy price this is the maximum amount
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they wish to spend conversely sellers
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enter the market with a specific ask or
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sell price
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the lowest amount they wish to sell
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their assets for
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the order book is the list of all of
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these prices
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here you can see the snapshot of the btc
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usdt spot market order book
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in this particular market you can buy
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btc using usdt
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or you can sell btc for usdt
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as a reminder usdt is a stable coin
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whose
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value is always roughly equivalent to
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the us dollar
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for this example we will use both
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currencies usdt
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and usd interchangeably in red you can
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see btc
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for purchase at the best prices that
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sellers are currently willing to sell
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for
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the price is quoted per one btc
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although the amount available to
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purchase may vary
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in green you can see the maximum price
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that buyers are willing to spend to
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purchase btc
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again quoted in value per one bitcoin
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the amount btc column shows you how much
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btc is actually offered for each price
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while the value usdt column shows you
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how much
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each amount is worth in dollars for
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example
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if you are a buyer who is happy with the
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best sell price
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available the values on the order book
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tell you that you can purchase
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up to 0.51999 btc
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or 6890.39
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worth at the price of 13 250.78 dollars
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any more bitcoin than this and you will
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be forced to purchase their reminder
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at the next best price of thirteen
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thousand two hundred fifty point eighty
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one dollar
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as you successfully purchase your
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desired amount of bitcoin
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the order book will automatically update
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and remove these quantities and prices
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accordingly
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in other words you will be taking
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liquidity away from the order book
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this is also known as a market order
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meaning
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an order that automatically executes
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against the best possible price
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this is a fast and convenient way to
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guarantee the execution of a trade
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alternatively you can place an order at
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the price that is lower than the best
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sell price
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notice that there is a gap of 2.66
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dollar
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between the best sell and best buy
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prices
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this is known as the spread placing an
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order at any price within the spread
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will immediately add it
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into the order book for example placing
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a buy order for 0.5 btc
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at the price of 13 250
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will add a new line above the current
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best price seen
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in our image in this case you are adding
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liquidity to the order book
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your offer will stay in the book until
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one or many sellers agree to sell your
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bitcoin at your desired price
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this is also known as a limit order you
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control the limited price that you
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desire
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but the disadvantage is that there is no
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guarantee someone will agree to your
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price
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and your order may never execute as you
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can probably imagine
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liquidity is crucial to any market the
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more liquidity there is the more options
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you have
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and the more likely that your buy or
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sell orders will actually complete
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once you and your seller's match your
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account will
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instantly be deducted to correct amount
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of usdt
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and be credited with the corresponding
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amount of btc
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please note that these trading
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activities can happen
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for almost any pair of popular crypto
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assets
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vmex currently offers major cryptos
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against usdt
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this is the most basic and
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straightforward way to trade
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cryptocurrencies
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however femax also offers derivatives
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trading this requires
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much more advanced knowledge that will
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be covered in next videos
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so how to make money trading bitcoin
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making money trading bitcoin involves
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buying an asset
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at a lower price and selling it at a
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higher one
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this is much easier said than done
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obviously it is impossible to predict
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the future with hundred percent accuracy
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however one can make educated guesses
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based on some type of informational
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advantage
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by rigorously and meticulously following
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the news and studying all of the factors
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that
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affect bitcoin's price you may begin to
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recognize
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certain trends or patterns finding
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affecting buy or
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sell signals is not easy but may just be
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possible with
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enough work if you're convinced that you
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have developed such
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system all that's left for you is to use
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the knowledge
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presented above to buy more bitcoin when
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the price is low and sell whenever the
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you believe the price has reached its
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peak or is about to drop
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once in drops you can purchase more
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bitcoin
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and repeat the process indefinitely
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another method
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worth mentioning is known as arbitrage
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there are many exchanges besides vmax
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and on each the price of bitcoin will
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often be slightly different
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this is because the spot price of btc at
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any given exchange
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is based on the forces of supply and
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demand if one of the exchanges
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have a surplus of sellers the price will
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be lower
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while exchanges with too many buyers
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will force the price
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up one could theoretically find an
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exchange with a lower price
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purchase bitcoin there and then sell it
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on an exchange with higher price
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in practice it is highly improbable that
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the
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beginner crypto trader will execute an
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arbitrage operation
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one of the first challenges you will
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face is timing any such opportunities
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will be noticed by other participants in
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the market
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some with sophisticated trading
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algorithms
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that automatically make trades on their
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behalf
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significant price gaps do not tend to
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last for
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more than an instant next there are also
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additional costs to consider transfers
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and transaction fees
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may exceed potential gains assuming you
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perform these
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before anyone else is in the first place
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nevertheless
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arbitrage opportunities do exist and
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those
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aren't with the right tools can still
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benefit from them
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investing in cryptocurrency for the long
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term finally perhaps the best and
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easiest approach
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is to look at cryptocurrencies as a
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long-term investment study the
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fundamentals behind a crypto project
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that you're interested in and determine
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if it has inherent
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value and potential for growth bitcoin
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is a great example
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of an asset that many believe despite
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any roadbounds will only appreciate in
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time
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by purchasing and simply holding
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promising cryptos
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you do not need to actively worry about
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prices or news
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simply sell when you've reached a target
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profit
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you are comfortable with that's the end
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for today's video
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for more informations and useful trading
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knowledge follow femax academy
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on our website and our youtube channel
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and last but not least the question
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for trading bonus you were waiting for
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so
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which exchange do you actually spot
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trade let us know in the comment section
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below
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leave your phoenix uid and we will
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choose five lucky winners to gift with a
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trading bonus
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if you do not have a femax account yet
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just click into the
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link in the description create a femax
[540]
account
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and you may get a 7 day free premium
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membership trial and
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other trading bonuses to learn more
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about remax and cryptocurrencies watch
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the videos in the box
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on the left side and if you are new to
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the crypto world and you're willing to
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learn even more about this
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watch the videos on the right side of
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this corner
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for the femax user tutorials thanks for
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watching
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bye
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