Want to learn to trade IoTeX cryptocurrency but don't know where to start? This ultimate guide teaches you everything you need to know about IoTeX trading and review the best crypto broker to get started.
The best way to introduce IoTeX is to start with the Internet of Things. For those unaware, the IoT is a rapidly advancing network of objects that are equipped to exchange data in real-time.
In order to promote the mass adoption of IoT, a team of developers came together to build a blockchain network - known as IoTeX. Since August 2021, the governance token of this decentralized ecosystem, IOTX, has enjoyed a sudden uptrend in the market.
If you want to ride this IoTeX wave, then trading this digital currency can be one of the most effective and lucrative ways to do this.
Our How to Trade IoTeX Guide will offer you all the information you need before entering this space. This includes the basics of trading, strategies to consider, and how you can get started with an online brokerage account to start capitalizing on IoTeX today.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Table of Contents
- What Is IoTeX (IOTX) Trading?
- How Does IoTeX Trading Work?
- How To Trade IoTeX (IOTX) Online - Setting Up A Trade
- How To Make Money Trading IoTeX (IOTX)
- How To Trade IoTeX (IOTX) - Step-by-Step Walkthrough
- How To Trade IoTeX (IOTX) Guide - The Verdict
What Is IoTeX (IOTX) Trading?
Fundamentally, the concept of IoTeX trading revolves around buying and selling this digital token - with the intention of making a profit.
In order to be successful with your IoTeX trades, you will first need to familiarize yourself with this asset, its market performance, and equip yourself with tools that will allow you to make the right trading decisions.
Although this might sound quite overwhelming, once you get the basics right - you will find that the process of trading IoTeX is quite simple, and one that can be well worth your time and effort.
As a cryptocurrency, IoTeX is a largely volatile asset. Meaning, its price can go up and down substantially in a few hours. Such movements can be triggered by a number of events - be it an announcement from the developers, governmental regulations, or even socio-economic aspects.
When thinking of how to trade IoTeX, you need to be able to predict the direction in which the price of IoTeX will move. One simple way to do that is to look at the balance of supply and demand. If there are more traders wanting to buy this digital token, then there will be an increase in its price.
Conversely, if more investors are trying to dispose of their IoTeX coins, then you will see the value of the digital asset decline.
Here is how an IoTeX trade can play out in a real market scenario:
- Let's suppose that you want to trade IoTeX against US dollars.
- On cryptocurrency trading platforms, this will be represented as the pair IOTX/USD.
- Based on your research, you speculate that the value of IOTX in US dollars is about to increase in the upcoming days.
- You thus decide to go long on this pair by placing a buy order worth $100.
- Your analysis turns out to be right, and the value of IoTeX goes up in the next few days.
- Consequently, the value of your IoTeX position increases to $150 - translating to a gain of 50%.
- Wanting to secure this profit, you close the trade.
This particular trade gets you a profit of $50 on your $100 investment in IoTeX. As simple as this might seem, finding the right trading opportunities is not something that comes naturally to everyone.
Timing the market correctly is a skill that is acquired over time with practice, experience, and by educating yourself about the different strategies available to you. If you are able to make the right speculations, trading IoTeX can be highly rewarding.
That being said, it is also crucial that you comprehend the risks associated with this digital asset. In case your prediction goes wrong, you should be prepared to take in losses.
With this in mind, let us explore some factors that can help you understand the IoTeX trading market more comprehensively.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How Does IoTeX Trading Work?
By now, you know what IoTeX trading entails. In most simple terms, you are trying to speculate on the future price of this digital coin.
However, before you can start placing IoTeX trades, there are a few key points that you need to know about.
Let's begin with the most fundamental aspects.
IoTeX Price Movements
Take the case of any tradable asset - you will notice that its price is constantly changing, which is subsequently determined by the economics of supply and demand. The case of cryptocurrencies like IoTeX is no different.
When thinking of how to trade IoTeX, your main goal is to predict how the price is going to move in the future. Depending on your speculation, you can open a position. If you are right, you will end up making a profit.
As you can see, the price movements of IoTeX are crucial for you as a trader. The more it moves, the more opportunities you will get. In that regard, IoTeX, being a cryptocurrency, is a highly volatile asset that is apt for trading.
That is, compared to stocks and commodities, the price of cryptocurrencies such as IoTeX moves up and down quite drastically. Although this can be of advantage for experienced traders, high volatility also contributes to the enhanced risk associated with this digital asset.
IoTeX Trading Pairs
In the crypto markets, a trading pair is made up of two different assets that can be exchanged for each other. When thinking of how to trade IoTeX, you will need to decide which currency you want to speculate IOTX against.
Now, this second currency can be either fiat or another crypto asset. Let us explain a bit further.
You can choose to trade IoTeX against a fiat currency, like US dollars or British pounds. You will come across such pairs represented as IOTX/USD and IOTX/GBP on trading platforms.
The main advantage of choosing an IoTeX-fiat pair is the ease of speculating on the exchange rate. Since currencies such as USD are widely traded across the world, you will also be able to access high liquidity along with tighter spreads.
The other alternative is to trade IoTeX against another cryptocurrency - such as the likes of Bitcoin, or Ethereum. However, when compared to the IoTeX-fiat option, speculating on the future value of a crypto pair can be a complicated process and one that requires some serious expertise.
For this reason, if you are a complete beginner to the crypto trading space, you might want to take your chances with an IoTeX-fiat pair first. Once you learn your way around the market and are confident about your skills, you might be equipped to move on to IoTeX-crypto pairs.
Long or Short-Term Trading
Before you set up an IoTeX trade, you should have a motive behind it. Of course, this might sound obvious, yet many beginner traders tend to overlook the significance of setting clear targets.
The first thing to consider in this regard is whether you want to own IoTeX or simply speculate on its price movement in the short term.
If you are looking to own IoTeX, then it would be best to trade this digital token in the long term. In other words, you will be investing in this crypto asset and holding on to your IOTX coins for a few years - until its value appreciates to meet your profit target.
Historically, IoTeX has performed quite well in the longer term. For instance, since January 1st, 2021, the value of this digital coin has increased by over 1,500%.
Going for such a 'buy and hold' strategy will allow you to benefit from the long-term price appreciation of IoTeX, without having to constantly watch over the market.
Another way to look at IoTeX trading is to think in terms of shorter price swings. In this method - rather than owning the actual coins, you will be merely speculating on the brief price fluctuations of this asset.
However, a short-term approach almost always means that you have to dedicate continuous attention to the market. In order to be able to time your trades correctly, you will also have to resort to using tools such as technical indicators.
As you can imagine, this demands experience and expertise. Moreover, it will also take time to transition from textbook knowledge to trading IoTeX with real money. Given these factors, if you are new to the crypto markets, it might be in your best interest to risk only small amounts when trading IoTeX.
Trade and Own IoTeX
As we mentioned earlier, one way to trade IoTeX is by taking ownership of this asset. This will allow you to hold on to your IOTX coins for a long time until the value of the token increases for you to cash out at a profit.
Now, there are a few feasible ways for you to buy IoTeX. But, the safest method would be to find a regulated crypto broker that can facilitate the easy purchase of this digital asset. The main bonus of using such platforms is the added security on your trades.
Moreover, some of the leading regulated crypto brokers of today will also allow you to store IOTX tokens right on the platform. This will save you from the hassle of finding an external wallet for the safekeeping of your digital assets, thus simplifying the entire process.
The other alternative you have is to trade IoTeX for the short term. However, most of these strategies, such as 'swing trading,' 'day trading,' or 'scalp trading,' will require you to open and close positions within relatively shorter time frames.
For instance, scalp traders often trade IoTeX within minutes or sometimes even seconds. As you can imagine, this makes it practically impossible to buy and sell IOTX every time you open a position.
This is where CFDs come into place. These are financial instruments that represent the value of your chosen asset - in this case, IoTeX. When the price of IOTX moves up in the market, so will the rate of the CFD, and vice versa.
In other words, CFDs allow you to trade IoTeX without having to buy the tokens outright. Moreover, as you are only speculating on the price of this digital coin, you can capitalize on both bull and bear markets. Alongside, you will also be able to gain access to leverage - depending on your chosen broker.
While the advantages are many, CFDs are also regarded as highly risky instruments - which is why this derivative product is not accessible in all countries. Both the UK and the US have already prohibited crypto CFDs in their respective jurisdictions.
However, you might find unregulated cryptocurrency exchanges offering access to leveraged CFDs. But it goes without saying that such platforms are relatively less secure and will only add to the risk of your IoTeX trades.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How To Trade IoTeX (IOTX) Online - Setting Up A Trade
When you are learning how to trade IoTeX, one of the most important things you need to know is how to communicate your positions to your broker clearly. This is where you use trading orders.
In simple terms, you can consider these as instructions to your broker. Depending on the specific market, your speculation, and your strategy, the trading order you use will also differ.
There is a long list of trading orders that are used by expert traders when dealing with cryptocurrencies like IoTeX.
It is nearly an impossible task to learn about everything overnight. However, to get you started - in this section of our How to trade IoTeX Guide, we will cover the most important ones you need to know about.
Buy or Sell Order
When you place an IoTeX trade, the first thing you need to convey to your broker is whether you are going long or short on this asset.
- If you are opening a long position, then you will enter the trade with a buy order on IoTeX, and use a sell order to close it.
- If you are going short on IoTeX, this means that you are speculating that the digital asset will decrease in value. In this case, you will be opening your IoTeX position with a sell order and then close it with a buy order.
Buy and sell orders always go hand in hand. That is to say, if you use one of these to enter your IoTeX trade, you will need to use the other one to exit it.
As you know by now, IoTeX trading is all about being precise when it comes to your decisions. You should have a clear idea of how you want to enter the market and when.
For a highly fluctuating asset like IoTeX, defining the entry price can be one of the most crucial elements that will determine your ability to make profits. This is when you will want to use a market order or a limit order.
Using a market order indicates to your broker that you want your trade to be carried out right away, at the next available price.
However, it is crucial for you to remember that since the value of IOTX moves very rapidly, the price you receive could be slightly different from the one quoted at the time of placing the order.
Due to this uncertainty, market orders are best used when traders are more concerned about the speed of executing the position to grab a profit-making opportunity.
If your trading strategy requires you to buy or sell IoTeX at an exact price, then it will be best to use a limit order. In this case, you specify a value, and your trade won't be executed unless IoTeX reaches this preset level.
That said, the disadvantage here is that there is no guarantee that your order will be executed quickly or at all. As such, limit orders are more suited when you have a target entry/exit price in mind.
Once you have opened your IoTeX position, the trade could go in two directions; it will either result in a profit or a loss. In both these cases, you can set a target price at which you want to exit the market using the following orders.
- Take-Profit Order - This specifies the exact price at which your IoTeX position will be closed at a profit.
For instance, if your aim is to make a gain of 3% on IOTX, you can set a take-profit order at 3% above or below your entry price. Once this target has been met, your IoTeX position will be automatically closed by your broker.
- Stop-Loss Order - This is designed to limit your loss on an IoTeX position. For example, you can set a stop-loss order at 5% above or below your entry price.
If the value of IOTX falls below this price level, your broker will automatically close your trade - preventing further losses.
So far, we have discussed the important trading orders that you can use at different stages of an IoTeX trade. To put it all together, let us offer you a real-world example:
- Let's say that you want to go long on the trading pair IOTX/USD.
- Your chosen brokerage platform quotes this pair at $0.084.
- You want to open your trade only when the value of IOTX increases to $0.085.
- You thus place a limit order with the entry price set at $0.085.
- Your target is a 20% profit, so you set the take-profit order at $0.102 (20% above $0.085).
- You also want to limit the potential losses from this trade to 5% - so you set a stop-loss order at $0.0807 (5% below $0.085).
In this IoTeX trade, regardless of which direction the market moves, the appropriate trading orders will be executed by your broker as per your instructions.
That is to say:
- If the value of IoTeX hits $0.102, your take-profit order will be filled, and the trade will be closed automatically.
- On the contrary, if the price of IoTeX falls to $0.0807, your broker will execute your stop-loss order and close the trade.
As you can see, you can use these orders in conjunction with each other to maximize your profits and limit your losses. More importantly, this way of trading will make sure that your trades are executed automatically at the preset levels without you having to take care of them manually.
How To Make Money Trading IoTeX (IOTX)
In all likelihood, the reason you are learning how to trade IoTeX is to make money. So let us look at some aspects that can help maximize your potential profits from trading this digital asset.
It goes without saying that the profits you make from IoTeX will be directly proportional to the amount of money you are risking on this asset.
In other words, a higher stake can always lead to better profits. But also, beware that it can also result in greater losses.
For a beginner, deciding how much you want to stake on IoTeX can be a challenging decision - especially if emotions are involved. You can end up putting in more money than you can afford, increasing your exposure to the market.
- As such, you might want to think of a bankroll management strategy before you start placing IoTeX trades.
- The easiest way to approach this is by putting a limit on your stakes.
- For instance, you can decide that your maximum stake amount will always be only 2% of your available funds.
- That is to say, if you have $10,000 available in your trading account, you will not risk more than $200 on a single IoTeX position.
This can be an excellent way to determine your stake without letting the current market conditions influence your judgment.
IoTeX Trading Leverage
When looking up how to trade IoTeX and maximize your profits, you will certainly be presented with the option of leverage.
This will allow you to open IoTeX positions by staking more money than you actually have. Put otherwise, you will be borrowing the rest from your broker.
- Suppose you only have $100 in your trading account.
- You apply leverage of 1:10 on your IoTeX position.
- This increases your overall stake to $1,000.
- Suppose you make a profit of 20% on this particular IoTeX trade.
- With leverage, this means your total earnings come to $200.
- Had you not applied leverage, your profits would have been limited to 20% of $100 - which is $20.
While leverage might sound appealing at first glance, there is a reason why it is considered risky. Along with profits, this can also boost your losses.
As such, if at all you choose to leverage your IoTeX trades, make sure that you do so only via a regulated broker that offers negative balance protection and that you are fully aware of the risks involved.
Fees to Trade IoTeX Online
The fees charged by your broker form an integral part of your IoTeX trading experience. In fact, it can decide how much profit you walk away with.
And as such, it pays to be vigilant about how much you are being charged by your broker. Take a note of the following types of fees that you are likely to come across on your chosen IoTeX trading site.
IoTeX Trading Commission
You are likely acquainted with the concept of trading commission. In the crypto markets, this is the charge that is levied by your broker for executing trades on your behalf.
Now, as with any other business, the commissions also vary drastically from one broker to another - depending on your chosen asset class and the investment amount.
So, if your chosen broker has a commission structure of 2% on cryptocurrencies, this means that every IoTeX trade you place will cost you a 2% fee.
- If you place a buy order on IoTeX worth $1,000 - you will have to pay a commission of $20.
- If you place a sell order on IoTeX worth $2,000 - your commission will increase to $40 respectively.
Regardless of whether you are opening or closing your IoTeX position, you will have to pay this commission to your broker.
Fortunately, these days - there are plenty of regulated brokers offering commission-free access to IoTeX. You should, however, only sign up on such platforms by making sure that you are not being overcharged on any other front.
With that in mind, there is another equally important fee that you need to be wary of when looking for an IoTeX broker - the spread.
If you are following a short-term strategy, you are likely to end up making a high volume of trades. When this happens, even a marginal difference in the fees can cut significantly into your profits.
The 'spread' is one such indirect fee that can affect your profitability - which is calculated as the difference between the buy and ask price of IoTeX. You want this variation to be as tight as possible so that the respective trading fee remains on the lower side.
Another thing you need to know about the 'spread' is that you will need to cover this cost in order to break even on the trade.
That is, if your brokerage platform has a 3% spread on IoTeX, then you will need to make a minimum gain of 3%. Only any earnings beyond this can be accounted as your take-home profit.
Other IoTeX Trading Fees
Apart from commission, your chosen broker's fee structure might also include the following types of charges when trading IoTeX:
- Deposits and Withdrawals - It is common for brokers to charge you transactional costs for processing deposits and withdrawals. This might vary depending on the amounts you are transferring and the currency you use.
- Overnight Fees - Also called 'swap fees,' this charge is applicable particularly when you are trading IoTeX CFD positions that remain open overnight.
- Inactivity Fee - On most brokerage platforms, you will end up paying an inactivity fee if you do not fulfill the minimum trading requirement over a certain period of time.
If you are a beginner, it is possible that you might not be aware of these charges when looking at the fee structure of your chosen brokerage. But make no mistake about it, even though these might appear negligible, these fees can add to a large amount - especially if you are placing regular IoTeX trades.
How To Trade IoTeX (IOTX) - Step-by-Step Walkthrough
By now, you are equipped with some fundamental knowledge regarding IoTeX trading. Without further ado, let us tell you how you can set up your brokerage account and place an IoTeX trade easily from the comfort of your home.
Step 1: Choose an IoTeX Trading Site
Finding the right broker for your IoTeX trades is not a decision to be taken lightly. The internet is swamped with platforms that offer you tons of services and promises of competitive rates.
However, choosing the right crypto provider can be an overwhelmingly confusing decision. You need to carefully consider its features, read some reviews, and, if possible, try out the trading platform before you make a final decision.
To give you a hand with this, we have created a list of the most important factors you need to consider when choosing an IoTeX trading site.
- Regulation: Is the brokerage site regulated by a respected financial authority, such as the FCA, CySEC, or ASIC?
- Fees: How much are you liable to pay in terms of fees and commissions?
- Payments: Which methods can you make deposits and withdrawals on the platform?
- Minimum Deposits: Does the platform require a minimum investment amount when trading IoTeX?
- IoTeX Pairs: Which IoTeX trading pairs are supported by the broker?
- Trading Platform: Is it easy for a beginner to interact with the trading site?
- Mobile Application: Can you easily place trades via a mobile app?
Once you have answers to these questions, it will be easier for you to compare different online brokers and find the one that best suits your needs. Preferably, you want an online IoTeX broker that is fully regulated and offers competitive fees.
Although it might sound like a strict criterion to follow, when you are risking your hard-earned money, it is always a good idea to take some time to find the right platform before proceeding.
Step 2: Open an IoTeX Trading Account
When you have chosen your most suitable IoTeX broker, you can proceed with the signup process. You can start this by registering your email address and setting a password. Along with this, you will also have to provide your personal information.
However, regulated cryptocurrency brokers will also require documents in order to confirm your identity via a KYC process. This includes a government-issued ID such as a passport and a document that can serve as proof of address.
Step 3: Add Funds
Once your KYC details are verified, you can proceed to fund your brokerage account. This step is necessary for you to be able to place IoTeX trading orders on the platform.
You can choose a payment method that is most comfortable to you - since many brokers these days support debit/credit cards, direct bank transfers, and e-wallets like PayPal.
Step 4: Choose an IoTeX Trading Market
Next, look for IoTeX on your chosen trading platform by simply searching for the asset. You can then choose your preferred marketplace - e.g. IOTX/BTC or IOTX/USD.
Step 5: Place IoTeX Trade
When you are ready to place your IoTeX trade, you can specify whether you want to buy or sell using the orders we covered earlier. You should also enter the stake amount before setting the take-profit and stop-loss price levels.
Finally, make sure that all the information you have entered is correct and confirm your first IoTeX order.
Your broker will go ahead and execute your trade based on your instructions!
How To Trade IoTeX (IOTX) Guide - The Verdict
The first step in placing successful IoTeX trades is to use reliable data sources. With guides like ours, you will be able to educate yourself about the ever-evolving market and identify the different tools you have at your disposal.
More importantly, you will also need a regulated crypto broker that facilitates easy access to IoTeX and your desired trading pairs.
Our How to Trade IoTeX Guide has clearly laid out the steps you need to follow to begin your IOTX trading journey. Before you commence, make sure to do the due diligence so that you are thoroughly informed about the risks involved.
eToro – Best Platform To Trade IoTeX Crypto
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
How To Trade IoTeX FAQs
How can I start trading IoTeX?
To start trading IoTeX, you will need to open an account with a brokerage platform that will allow you to buy and sell this digital asset.
What is the minimum I can stake on IoTeX?
The minimum stake amount will be decided by your chosen brokerage platform.
Where can I buy IoTeX?
IoTeX can be purchased from a regulated crypto broker that offers this digital token. Some trading sites even allow you to store IOTX coins within its in-built wallet.
Is it possible to apply leverage on IoTeX?
Yes, you will be able to access leveraged IoTeX CFDs depending on where you live. However, if you reside in the US or UK, you will not be able to trade IoTeX CFDs legally.
How to find the best broker for trading IoTeX?
The most important thing you need to look for is regulation from a respected financial authority. You will also need to check the user-friendliness of the trading platform and its fee structure before you sign up on a brokerage site to trade IoTeX.