Let’s imagine, you have set up a wallet, got your first crypto on balance, and have the exchange available via the laptop or phone. It is time to test your first strategy. The WhiteBIT crypto exchange offers you to go through a training period without risking assets from the wallet. We are going to tell you what the advantages are.
What is a Demo Token, and how does the exchange accrue it?
A Demo Token is a cryptocurrency that cannot be bought. It is issued for free only and has no real value. For the WhiteBIT cryptocurrency exchange to accrue it, you need to sign up on the site.
The platform provides numerous demonstrative tokens: 0.5 DBTC and 1000 DUSDT. This is an advantage because it allows you to buy Bitcoin (a testing one) or sell it many times in training mode and get the hang of how it is done.
How to buy Bitcoin using demo funds?
The goal of every crypto investor is to multiply their investment and avoid the worst scenario, which is bearing losses. For this, they should calculate all their actions on any platform, be it WhiteBIT or any other platform.
First, one should get to know how orders generally work. And if the trader is well-versed in the order book and trading tools that the crypto exchange provides, they need to adjust the strategy that is already practiced.
How to act:
- Once registered or authorized, go to the Spot balance and select “Get Demo Token”. You can activate it in a few clicks as there are no special requirements to get it.
- Next, choose the Basic or PRO Trade.
- Let’s try to buy Bitcoin for DUSDT with the help of a Market order. In the Market section, select DEMO and click on the asset. After that, enter the amount in DUSDT for which you will trade crypto. The transaction fee will be included in it.
The advantage is, WhiteBIT has both common types of orders (such as Market or Limit) and unique ones, inherent to this particular exchange (Conditional). Even if the user does not intend to learn specific tools of this platform, they can gain skills that can be used on other platforms.
Important: Demo Tokens cannot be tested to buy or sell cryptocurrency using borrowed funds (the Margin Trading section).
What influences the strategy?
A cryptocurrency portfolio is all the assets in which money has been invested. Portfolio rebalancing is a prerequisite for successful trading. It is necessary to keep records of when and which coin went up or down. WhiteBIT has implemented a tool that can promote structural thinking: the order history, which shows the history of general trading and open (unfulfilled at the moment) buy or sell orders. It can be regarded as a trader’s diary, a useful tool, which, however, can rarely be found on the platform where mass cryptocurrency trading is going on.
Before placing their first order for Demo Tokens, an investor needs to understand whether they intend to invest for holding or want to trade daily (every hour, minute, week, or every 4 years)?
As for the asset, the trader should find out various pieces of information about it: how volatile it is in general, at a particular hour, minute, or in a given week. Less volatile coins are usually part of a long-term strategy. The ones that are more volatile in price, by contrast, are the main assets for traders who are focused on intraday trading.