Cryptocurrency
What is Cryptocurrency Trading?
Cryptocurrency Trading at Mayflam Group
Cryptocurrency trading involves capitalizing on the price movements of digital assets such as Bitcoin, Ethereum, and others. This can be done in two primary ways: either by trading the actual coins through a cryptocurrency exchange or by speculating on price changes using derivatives like Contracts for Difference (CFDs).
CFD trading allows traders to speculate on the rise or fall of cryptocurrency prices without directly owning the assets. Investors can go long (buy) if they expect the market to rise, or short (sell) if they anticipate a decline. As leveraged products, CFDs require only a small initial deposit (margin) to gain full market exposure. While this leverage can significantly increase potential profits, it also amplifies risks and losses.
At Mayflam Group, we combine the power of artificial intelligence (AI) with the expertise of seasoned traders—each with between 7 to 15 years of hands-on market experience. Our team is highly skilled in technical analysis, using historical market data to forecast future price movements and identify high-probability trading opportunities.
Our proprietary AI-driven trading system is designed to analyze large volumes of market data in real time, generating accurate and timely trading signals. By leveraging this advanced technology alongside expert human oversight, we strive to maximize trading efficiency and profitability.
While no investment is without risk, our AI trading platform has demonstrated the potential to deliver consistent returns, with profit margins ranging from 40% to 99% per trade under favorable market conditions. This combination of cutting-edge technology and deep market insight enables us to aim for strong, sustainable returns on investor capital.
How does Cryptocurrency Market Works?
Understanding Cryptocurrency Markets
Cryptocurrency markets operate on a decentralized system, meaning they are not controlled or issued by any central government or financial institution. Instead, they function through a distributed network of computers, allowing for peer-to-peer transactions without the need for intermediaries.
Even though cryptocurrencies are not physical currencies, they can still be bought, sold, and traded through digital exchanges and securely stored in digital wallets. Unlike traditional fiat currencies, cryptocurrencies exist solely as digital entries—records of ownership maintained on a public ledger known as the blockchain.
When one person wants to transfer cryptocurrency to another, the transaction is directed to the recipient’s digital wallet. However, this transaction only becomes official once it is verified and recorded on the blockchain, a process known as mining. Mining not only confirms transactions but also plays a key role in introducing new coins into circulation, acting as the creation mechanism for most cryptocurrencies
What is the Spread in Cryptocurrency Trading
Key Concepts in Cryptocurrency Trading
1. The Spread
In cryptocurrency trading, the spread refers to the difference between the buy (ask) and sell (bid) prices of a digital asset. Similar to traditional financial markets, when you open a trade, you’ll see two price quotes.
To go long (buy), you enter at the buy price, which is slightly higher than the current market rate.
To go short (sell), you enter at the sell price, which is slightly lower than the market price.
This gap between the two prices represents the cost of the trade and is how brokers or exchanges earn a portion of their revenue.
2. Lots in Crypto Trading
A lot in cryptocurrency trading refers to the standardized quantity of a particular digital asset involved in a single transaction. Due to the high volatility of cryptocurrencies, lot sizes are generally small—often just one unit of the base cryptocurrency (like 1 BTC or 1 ETH). However, in some cases, larger lot sizes may be used depending on the coin and platform.
3. Understanding Leverage
Leverage allows traders to gain larger market exposure with a relatively small initial investment. Instead of paying the full value of a trade upfront, you deposit a margin—a fraction of the total trade size.
When the position is closed, profits or losses are calculated based on the full value of the trade, not just the margin. This can significantly amplify gains, but it also increases the risk of larger losses.