Want to learn to trade Enjin cryptocurrency but don't know where to start? This ultimate guide teaches you everything you need to know about Enjin trading and review the best crypto broker to get started.
Enjin is a token with strong ties to the gaming industry. Founded in 2009, the Enjin network has been able to acquire over 20 million users. The token’s use cases have made the coin an attractive cryptocurrency in this marketplace.
If you’re looking to make a profit from this coin, you may be considering how to trade Enjin and all the necessary details you need to understand.
We will not only walk you through the various strategies through which you can trade Enjin but also the risks to consider and the best platform you can use to go about this seamlessly.
Enjin trading is a dynamic and potentially profitable venture. Here is all you need to know about ENJ trading, trading strategies and tips, and how to start trading.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
What Is Enjin (ENJ) Trading
The Enjin protocol was designed to provide software products that will allow anyone to monetize the blockchain ecosystem.
Enjin had an Initial Public Offering (ICO) in 2017, and since then, the protocol has established itself as a fast-growing blockchain ecosystem developer creating products that allow users to maximize multiple assets.
Learning how to trade Enjin means you have to understand the way the cryptocurrency market works. This is because trading Enjin means you’ll be predicting the price movements of the coin to determine whether to buy or sell the asset.
Therefore, you’ll constantly have to analyze the market to determine when it’s profitable to make an Enjin trade.
Enjin is a volatile asset, just like many other digital tokens, meaning its price will fluctuate across the day. The coin could increase in a minute and drop significantly in the other. Therefore, to make impressive returns on your trade, you must be able to anticipate the Enjin market correctly.
As a result of this, the question often boils down to how well you can speculate the coin’s price. In the trading world, users leverage different tactics to go about this. While some traders use certain technical indicators, others focus squarely on analyzing the market to make their Enjin speculations.
Regardless, your best bet is to assess Enjin’s demand and supply in the market. This will allow you to make an informed trading decision concerning the token. You should understand that the demand and supply forces determine the price movement.
That is, when there are more traders buying Enjin, there will be an increase in the token's price.
However, if many users are trying to sell their ENJ coins, that’s an indication that the token’s price will drop in no time. To further help you understand how this works, let’s use a practical example:
- Let’s assume Enjin has a market price of $1.50.
- You analyze the market and conclude that the coin is currently a good buy that has the potential of increasing soon. Based on that, you go long.
- Consequently, you place a $200 buy order on ENJ.
- By the following day, the coin increased from $1.50 to $2.00, a rise of about 33%.
- You decide to cash out, so you sell your ENJ tokens and finalize your trade.
The Enjin trade you just closed would have made you a profit of $66 on your $200 stake. As you can see, the strategy here is in knowing when to enter and exit trades. Therefore, if you want to continue making profits when trading ENJ tokens, you need to constantly engage in thorough research of the market.
Yet, doing your personal research doesn’t mean you’d be immune to losses. Thus, when considering how to trade Enjin, you also have to think about the risks involved. Consider the level of risk you’re willing to bear and assess that in line with your trading goals.
Knowing this, it becomes crucial for us to help you understand some significant aspects you need to grasp before you start to trade Enjin.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How Does Enjin (ENJ) Trading Work?
Trading is not a new concept. People have traded assets for hundreds of years across many different commodities. Irrespective of what you’re dealing with, the trading principles largely remain the same.
You enter the market when you believe it is favourable, and you exit when you’ve made a profit. However, as simple as that might sound, trading cryptocurrencies requires more care and diligence.
Most importantly, not everyone can grasp it at once. Therefore, if you’re just getting started, you’ll need to understand the basics before you can successfully understand how to trade Enjin.
So, let’s dive in.
Enjin Price Movements
We have established that Enjin’s price movement is triggered by the forces of demand and supply. However, when learning how to trade Enjin, it’s important for you to know the factors that precisely affect these demand and supply forces, which in turn - will impact the coin’s price.
There are a number of such factors, and they include important market updates, circulating supply, and negative news, among others. Additionally, the way in which the media portrays Enjin can determine its price movement.
But beyond all of these factors, the coin’s volatility is of more concern. Since the value of Enjin will fluctuate throughout the day, you cannot ascertain what the token’s price will be in the next minute. This can both be an opportunity or otherwise.
Since the coin’s price fluctuates throughout the day, this offers you numerous opportunities to enter and exit Enjin trades. However, as exciting as that might be, the same price fluctuation causes an increase in the risk associated with the Enjin coin.
So, you see that it goes both ways, and this is why you need to always do adequate research and exercise due care.
Enjin Trading Pairs
You need to understand how the pairing system works if you intend to trade cryptocurrencies like Enjin. Think of trading in pairs as exchanging two instruments. This means that if you want to trade Enjin, you’ll first need to sell another asset.
You can do this in either of two ways in the cryptocurrency market. Either you exchange a digital asset for Enjin, or you do so with fiat money.
Let’s show you how the pairs will be displayed:
- When trading Enjin for fiat money, popular pairs include ENJ/USD (US dollars), ENJ/EUR (euros), or ENJ/GBP (British pounds).
- Concerning cryptocurrency pairs, this might include ENJ/BTC (Bitcoin), ENJ/ETH (Ethereum), or ENJ/LTC (Litecoin).
Essentially, trading in pairs means that you’re predicting the value of Enjin based on the exchange rate of the two individual assets.
- In context, if ENJ/USD has a quote of $1.50, that means one Enjin coin is equal to $1.50.
- Similarly, if ENJ/BTC is quoted at 0.000037 BTC, that means one Enjin coin is equivalent to 0.000037 BTC.
From the above, you’d likely agree that trading against a fiat currency is easier to predict and understand. If you're a trading novice, getting the hang of Enjin-crypto pairs can be challenging, especially with regard to speculating the exchange rate.
This accounts for why new traders often prefer to use the fiat currency option until they understand the market enough to try the other way. Additionally, another incentive for trading Enjin against a fiat currency such as USD is that you get access to tighter spreads and more liquidity.
Long or Short-Term Trading
Your Enjin trading journey should start by creating a strategy. That is, you should consider whether you want to trade ENJ tokens in the long or short term. This is a crucial step because your final decision determines your specific entry and exit into and from the market.
Let’s break this down:
- If you decide to trade Enjin for a long period, your best bet might be to consider it an investment.
- This means that when you purchase Enjin, you’ll hold on to it, hoping the value increases over time.
- This strategy is referred to as “buy and hold” and it’s most suitable if you’re just getting started. This is because once you buy your Enjin, you don’t have to monitor the market every second since your plan is long-term.
On the flip side, you might have some experience and be interested in trading short-term. In this case, you’re looking to profit from price movements. To do this, there are various strategies you can leverage, including day trading, swing trading, and scalping.
It all depends on your preference.
- When you’re trading short-term, you’ll be doing so based on the price movements of Enjin.
- However, because of the nature of this trading strategy, you’ll need to have a more in-depth knowledge of the market. Additionally, you’ll need to be able to engage in technical analysis. Finally, you have to constantly stay updated with relevant news.
- The simple truth is that all of this can be too much for a novice, which is why short-term trading requires some experience.
Therefore, you might want to start your trading journey with a simple but potentially profitable buy and should strategy. You can continue to do this until you have enough experience to trade short-term price movements.
Trade and Own Enjin
Trading Enjin on a long-term basis means you’re looking to own the digital asset for the period you’re holding it. That is, you’ll be holding the token until you believe the time is right to sell.
Doing this requires you to use a trusted broker and be in possession of a secure wallet for storing your ENJ tokens. A better alternative might be a broker that also comes with an in-built wallet.
A good example of this is eToro, a brokerage platform that offers you a safe wallet for your cryptocurrency tokens.
eToro is a leading broker in the marketplace with a user-friendly interface and a commission-free service for you to trade Enjin. Furthermore, the broker is regulated by leading financial authorities, indicating its credibility and legitimacy.
Trading Enjin on a short-term basis means you have to be conversant with market updates. This is because you’ll be entering and exiting numerous positions across the day. However, since it’s impractical to own coins for just a few seconds or minutes before selling them, the viable alternative is to trade CFDs.
This is the reason many short-term traders engage in CFD trading because these derivative products offer you the opportunity to predict an asset’s value without owning it outright. That way, you can enter and exit positions more conveniently and seamlessly. Additionally, you also get to trade both in bearish and bullish markets.
Let’s put this in context:
- You can go long based on your prediction that Enjin’s value will increase.
- At the same time, you can go short based on your speculation of a price decrease.
Furthermore, CFDs have become popular in the cryptocurrency market because they are leveraged products that allow you to maximize your trades. The derivatives’ growing popularity also means you can find your desired pair just about anywhere online.
Notably, however, CFDs are not legal everywhere. That is to say - certain countries do not allow CFD trading. If you fall in this category, you’d have to find Enjin derivatives through an unregulated exchange.
This would, however, mean that you may find it difficult to make deposits into your account with fiat money. Many of these platforms will only allow you to trade Enjin in pairs of stablecoins too - such as USDT or USDC.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How To Trade Enjin (ENJ) Online - Setting Up A Trade
Trading orders are a key part of this process. This is because when you’re learning how to trade Enjin, you need to understand how these orders work. The order you place is how you instruct your broker on what to do.
That is, when the broker should open a position, at what price, and when such a trade should be closed. There are various ways to go about this, but if you’re new to Enjin trading, the following methods are likely the best for you:
Buy or Sell Order
The process starts with you specifying whether you intend to buy or sell Enjin:
- If you’re going long on Enjin, that means you’ll be starting with a buy order and exiting with a sell order.
- Alternatively, if you're going short on the token, you’ll be entering with a sell order and closing the trade with a buy order.
This means that depending on which of these positions you enter with on your Enjin trade, you’ll be exiting with the other.
Your entry refers to the point at which you desire to enter the Enjin market. Once you identify that price, you can instruct your broker to execute your order in two ways. These two order methods shall be discussed below.
With a market order, you don’t get to state the price at which you open your Enjin trade. Instead, all you need to do is state the amount you’re willing to stake, and the broker will execute your order in accordance with the next best price.
This happens because of the volatility of the Enjin market. Due to the fluctuations, the Enjin price you receive might even be slightly different from the one quoted by the broker. Therefore, you have to decide if this order type fits your trading goals.
Notably, a market order is mostly used by traders who see a sudden opportunity and want to take quick advantage of it.
Limit orders, on the other hand, allow you to choose both your stake and your entry price when opening an Enjin position. This order type is mostly used when you have a well-researched trading strategy.
That is, you’re sure Enjin will reach a certain price, so you choose an entry point based on that. You should, however, note that if the coin doesn’t reach your target entry price, the broker will not execute your order. This means your order will remain pending until you cancel it.
Your knowledge of how to trade Enjin is not complete until you understand the relevant exit strategies. Since you’ve learned how to open a position, it is only right you know the methods to close it.
Here are the two ways to go about that:
- Take-Profit Order: Once you open a position, you likely will have a target in mind when you'd like to close the trade. The take-profit order is how you do this automatically. Once Enjin attains your desired price, the broker will automatically close your position.
- Stop-Loss Order: As you have the desired target for profit, you equally have a point beyond which you can take no loss. With a stop-loss order, you can instruct your broker to close your Enjin trade once it reaches a particular price below your entry point.
Let’s show you how these orders work:
- Let’s say you are trading the pair ENJ/USD.
- The pair is currently valued at $1.50.
- Following your assessment, you decide to open a long Enjin position, so you place a buy order.
- You use a limit order, so you set your entry price to $1.60.
- Your target is a 40% profit, so you set your take-profit price to $2.24.
- You can’t afford more than a 20% loss from this trade, so you create a stop-loss order at $1.28.
From the above, if this Enjin trade goes as you desire, your broker will close your position at $2.24 since that’s your take-profit price.
However, if the trade moves in the opposite direction, your broker will close your position at $1.28 since that’s your set stop-loss price.
Thus, the major point here is that these orders allow you to automatically open and close your Enjin positions. This is good because you don’t have to closely monitor the market at all points, subsequently allowing you to make swift Enjin trades.
How To Make Money Trading Enjin (ENJ)
Understanding how to trade Enjin becomes easy once you know what the entire process entails. The idea is simple; if your speculations are right, you’ll make a profit. However, the amount of such gains is determined by some other factors.
Here, we will walk you through the things you need to understand so you can maximize your potential gains from trading Enjin.
No Enjin trade can be initiated without making a stake. This stake is the amount of money you put on the trade, and it also indicates the level of risk you’re willing to take.
That is, the higher your stake, the more you’re willing to risk. Meaning if such an Enjin trade goes in your favour, you stand to make attractive gains. In the same manner, if the trade goes otherwise, you’ll incur a substantial loss.
Due to the crucial part your stake plays, it’s important to thoroughly research Enjin before deciding on it. Mere instincts will not offer you the best results. However, when you have a well-founded strategy with sufficient analysis, you can be sure you’d make an informed decision concerning your trade.
One popular strategy to regulate your stake is to set a self-imposed limit. That is, when trading Enjin, you’ll not go beyond that amount.
- For instance, you can set a 2% limit on each Enjin trade.
- This means that if you have $10,000 in your trading account, you won’t go beyond a $200 stake on each trade.
- Essentially, at every point in time, you’ll calculate the 2% equivalent of your balance and won’t go above that.
Adopting such a strategy helps you to keep your risk appetite in check. Furthermore, when you make such a decision, it’s better to look towards brokers with a low minimum investment requirement. A good example here is eToro, where you can trade Enjin with as little as $25. This allows you to trade with minimal risks.
Enjin Trading Leverage
Leverage refers to being able to open Enjin positions without having to cover the full amount upfront. This is why we discussed CFDs earlier on and established that they can be leveraged when trading Enjin.
Let’s break this down properly.
- Suppose you want to place a buy order of $1,000 on Enjin.
- However, all you have in your trading account is $100.
- This is a perfect case for you to apply leverage of 1:10.
- This means, instead of trading with the actual $1,000, you’ll only put up $100 while the broker will essentially loans you the rest.
- So, if you make a 10% profit on this Enjin trade, the percentage will be calculated on your full position, which is $1,000. However, in the absence of leverage, it would have been $10 on your $100 stake.
Therefore, many traders use leverage to boost their profits, albeit, it is mostly utilized with short-term strategies. However, as interesting as the perks of leverage sounds, it also increases the risk of incurring substantial losses. Therefore, before you embark on using leverage when trading Enjin, you must understand effective ways to hedge your risks.
Fees to Trade Enjin Online
The charges you pay on your Enjin trades are a major thing to consider in this journey. This must inform the kind of broker you choose because if you go with a trading platform with a high-fee policy, this will significantly affect your potential profits.
Therefore, as you’re learning how to trade Enjin, here are some of the popular fees you should consider.
Enjin Trading Commission
Brokers facilitate your Enjin trades. For doing this, they charge a fee for each position that you place. This is referred to as the trading commission and it varies across brokers. Some of the things that influence this commission include the asset type.
- Certain brokers have a variable fee policy. This means you’re charged an amount in conjunction with your total stake.
- For instance, suppose the broker’s commission is 2%. This means a $2,000 stake will cost you $40.
- Similarly, when you close the trade, the same rate will apply based on the amount at which you exit. This means that if you close your Enjin trade at $2,200, the broker will charge you $44 (2% of $2,200).
On the other hand, there are brokers that charge separate rates for opening and closing positions.
But more importantly, you can now find brokers that offer you Enjin trading services without paying any of these fees. eToro is a leading example in this regard, as you can trade all your cryptocurrencies including Enjin without paying commission.
Yet, in instances like this, you need to look out for other fees such as the “spread.”
When trading cryptocurrencies, the bid and ask prices quoted by your broker will always be different. This difference is called the “spread.” So, while trading Enjin, you want to ensure you get the lowest spread possible.
This is because the cost of the “spread” puts you at a disadvantage immediately when you open a position. Therefore, if your profit doesn’t surpass the spread, you’ll incur a loss. So, if the spread is 3%, you need to make a profit above 3% for you to make some personal returns.
Other Enjin Trading Fees
Although commissions and spreads have the most impact on your profits, there are some other fees you need to consider when trading Enjin. They all depend on your broker and the policy by which the platform operates.
Here’s an overview of such fees:
- Deposits and Withdrawal Fees: This is a common service charge among many brokers. When you make a deposit or request a withdrawal, your trading platform may charge you a service fee. Often, the amount depends on your transaction size, payment option, and, most importantly, the broker itself.
- Overnight Fees: Keeping your leveraged positions open overnight might cause you to pay a charge. This charge is referred to as a “swap fee.”
- Inactivity Fee: Some brokers set a minimum trading requirement. If you don’t meet this, you might be charged an inactivity fee. However, if a broker will charge any such fee, it will be contained in their terms and conditions, so you might want to read that before getting started.
How To Trade Enjin (ENJ) - Step-by-Step Walkthrough
Once you understand all we’ve discussed above, you can now start trading Enjin. In this section of our how to trade Enjin guide, we will take you through the steps you have to follow to enter and exit positions.
Step 1: Choose an Enjin Broker
As earlier established, it’s super important to choose the right broker when trading Enjin. However, we understand that getting the right one can be tasking, so we have discussed some important factors below to help you make the right decision:
- Regulation: A regulated broker offers credibility and security. This means you can safely trade Enjin on such a platform.
- Fees: A broker’s service charge across different trading activities should be considered. If the broker has a high-fee structure, you may want to consider another platform.
- Payments: Does the broker have numerous options for you to make deposits?
- Minimum Deposits: Are you mandated to make any such payment before you can start trading Enjin?
- Enjin Pairs: Does the broker support both cryptocurrency and fiat pairs?
- Trading Platform: Does the broker have a friendly user interface?
- Mobile Application: Brokers offering a mobile app make it convenient to trade Enjin.
Considering these metrics, it will take you some time to arrive at the right broker for trading Enjin, especially if you’re a beginner. As such, we have done the research and found eToro to tick all of these boxes as an efficient broker.
The broker is not only used by over 20 million people but is also regulated by CySEC, FCA, and ASIC. Furthermore, the platform allows you to trade Enjin in a cost-effective manner, as it doesn’t charge any commission.
More so, if you’re following a long-term trading strategy, you don’t have to transfer your ENJ tokens out of the broker. You can conveniently store them using the in-built wallet. In addition to this, you can begin trading Enjin with as little as $25, making it convenient for beginners to kick start their journey.
To this end, we’ll continue to discuss the guide in line with the processes of eToro to make it easy for you to trade Enjin.
Step 2: Open an Enjin Trading Account
You can create and set up your eToro account in a few minutes. Simply input your email address and password. You’ll also be required to go through a Know Your Customer (KYC) process, where you’ll provide some personal details and a government-issued ID.
This can be your driving license or passport. Furthermore, you’ll be required to submit a document that contains your proof of residence. A utility bill or bank statement will suffice here.
Step 3: Add Funds
The next step is to make a deposit into your account. On eToro, you’ll need to deposit at least $200 into your account, and you can do so through numerous payment options, including debit/credit cards, e-wallets, or a bank transfer.
Step 4: Choose an Enjin Trading Market
Once you fund your account, search for ‘ENJ’ to bring the relevant trading page.
Step 5: Place Enjin Trade
You can enter your desired orders on the Enjin trading page. Once you indicate your stake, click the “Open Trade” button. There you have it; your swift and commission-free Enjin trade on eToro is complete!
How To Trade Enjin (ENJ) Guide - The Verdict
Understanding how to trade Enjin doesn’t take much. The first thing you need to know is how to get the right broker. With a broker like eToro, you can enter and exit Enjin trades seamlessly and cost-effectively. In fact, you’ll be trading at a commission rate of 0%.
However, before you begin trading Enjin, it’s necessary to research thoroughly on the asset. If you’ll be trading short-term, you need to acquaint yourself with the market. That way, you can make informed decisions on your Enjin trades.
eToro – Best Platform To Buy Enjin
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
How To Trade Enjin FAQs
How to trade Enjin?
You can trade Enjin through a regulated broker such as eToro.
How much should I risk on Enjin?
Your Enjin stake depends on factors like your trading strategy and market analysis. Regardless, it is always best to go with a broker like eToro, which allows you trade Enjin from $25.
How to make money from Enjin trading?
You will make money from Enjin trading if your speculations are right. However, the size of your profit will depend on the amount you stake.
Can I trade leveraged Enjin CFDs?
This is possible. However, it may be legal or otherwise based on your location and the broker you’re using, so you always have to check that first.
Which is the best broker for trading Enjin?
There are numerous cryptocurrency brokers to trade Enjin. However, a regulated broker like eToro offers you numerous advantages to maximize your Enjin trades. This includes 0% commission and a minimum stake of just $25 per trade.