How to Use Tools Discovery to Maximize Profits (A Beginner's Guide)
While making the move from stock and forex trading to crypto trading is an exciting experience ripe with possibilities, there is much to learn. Combined with the well-known volatility of crypto markets and the steep learning curve associated with crypto trading, the experience can be both overwhelming and confusing. One of the many challenges new crypto traders face is learning about the diverse product offerings, such as USDT Perpetuals or Inverse Futures.
Bybit is among the leading crypto exchanges, well-designed for both beginning and experienced traders. For example, Bybit’s Tools Discovery makes it faster and easier for beginners to get started and expand their knowledge in fundamental areas.
Key Features:
Crypto trading is complex for beginners, but there are many compelling reasons to get started compared to stock and forex trading.
Beginning traders can ease into crypto trading with Bybit’s Tools Discovery, an advanced AI tool that uses machine learning to recommend personalized products and strategies based on a trader's preferences.
Reasons to Get Started With Crypto Trading
While crypto trading may be complex, it offers some distinct advantages over traditional trading options like stock and forex trading. These include market volatility, 24/7 market hours and low fees. As a result, many traders are turning to the cryptocurrency market to diversify their portfolios and avail themselves of these benefits.
Leverage on Cryptocurrency Volatility
Crypto trading is primarily driven by speculation and market sentiment, with many cryptocurrency traders looking to capitalize on price movements by holding short positions. This results in extreme volatility in the crypto market.
Stock and forex markets can also be volatile at times, but the price movements of cryptocurrencies are often more frequent and dramatic. While volatility means high risk, it also creates the potential for high returns. So, if you adopt a solid trading strategy and carefully monitor the market, you’ll be able to reap the rewards of the volatile crypto market.
24/7 Cryptocurrency Trading Hours
The stock market is open only on business days and during business hours. The cryptocurrency market, on the other hand, is open around the clock, every day of the week. Crypto traders have the flexibility to trade whenever they want, regardless of their geographic location or time zone. This is especially valuable for traders with other commitments during the day, or for those who live in different parts of the world. Traders can also swiftly adapt their strategies according to changes in global events in real time.
Lower Fees and Fewer Regulations
Crypto trading has minimal fees compared to stock market trading. As opposed to traditional stock exchanges, trading on cryptocurrency exchanges involves significantly lower costs, since the only expenses incurred are mining fees associated with the blockchain network. These mining fees are nominal, which results in lower fees charged by exchanges.
In addition, while the stock market is heavily regulated, this isn’t currently the case in the crypto market. The lack of regulations and restrictions means that trading opportunities are more open. Anyone can easily execute their trades in many different platforms, from P2P trading to decentralized exchanges (DEXs), as well as centralized exchanges (CEXs) like Bybit.
However, in February 2023, the Securities and Exchange Commission established a new rule that would potentially require cryptocurrencies to be held in a federally chartered bank. This may be only one of many regulatory changes to come.
Crypto Benefits Over Fiat
Central banks control fiat currencies, which directly contrasts with the decentralized crypto market. There is no central authority over cryptocurrencies, and all transactions are completed and validated through an open network. As a result, crypto transactions are irreversible, immutable and private.
In addition, the supplies of cryptocurrencies are typically capped, resulting in higher value over time as demand grows and supply shrinks. Meanwhile, fiat has an unlimited supply, which can lead to possible manipulation of its value. Often, cryptocurrencies are added to an investor’s portfolio as a hedge against fiat inflation.
Simplify Your Trading Journey With Tools Discovery
As you can see, crypto trading offers exciting opportunities for financial gains, and Bybit has now created the opportunity for beginning traders to easily reap returns with Tools Discovery. The first advanced artificial intelligence (AI) tool of its type in the market, Tools Discovery utilizes machine learning to analyze your trading preferences and recommend various strategies and products most likely to suit your interests and goals.
With Tools Discovery, experienced investors can identify and take advantage of more opportunities in the crypto market. At the same time, it makes it easier for beginners to learn the ropes and take advantage of effective trading techniques and tools from the start.
Survey Analysis to Understand Your Trading Style
When you use Tools Discovery for the first time, you’ll be prompted to complete either a Survey Analysis or a Trade Analysis. A Trade Analysis reviews your past trading activities on Bybit to make recommendations. If you’re new to Bybit, however, the Survey Analysis is more suitable.
Selecting the Survey Analysis will take you to a questionnaire that assesses your trading preferences and style. After completing the short questionnaire, a customized investment profile will be created. The Survey Analysis can be retaken at any time. If you choose to forego the Survey Analysis, your investment profile will be populated by default recommendations.
Beginners Tab in All Tools
You can access the All Tools tab on the My Profile page. Each of the listed tabs uses different algorithms to display recommended strategies and products. These are updated frequently for your benefit. The Beginners tab features products most beneficial for those new to crypto trading, such as Dual Asset and Copy Trading.
Dual Asset supports trading activities based on short-term speculation. All you have to do is to select your preferred crypto asset and predict whether the price will increase or decrease within a specific period. At the end of the designated period, the transaction will be settled in either your chosen cryptocurrency or USDT, depending on whether your prediction is accurate. Hence, you’ll earn a guaranteed APY, regardless of your prediction, although the returns on asset value may be affected due to market volatility.
Copy Trading allows traders to mimic the tactics of Bybit’s Master Traders. These are traders who have a proven track record and extensive experience. For beginners, Copy Trading can optimize gains without deep knowledge of the crypto market. Bybit’s Copy Trading feature now includes a new upgrade called Smart Copy Mode, which further simplifies copy trading down to three easy steps and protects traders with its loss-limiting functions.
Simulated Real-Time Profit Viewing
After selecting a specific trading strategy, that method will be added to your My Watchlist tab. This allows you to view a 60-day simulation of profits from the activity. More than that, you can compare the profitability of each trading technique you’ve selected. This allows you to see which strategy may more easily produce the highest yield.
One-Step Copy
Once you’ve decided which trading strategy is best for your current interests and goals, you can easily put that technique to work. When your desired trading strategy has been added to My Watchlist, and you deem it lucrative after reviewing the simulated real-time profits, simply click on Copy to execute the action.
Tools Discovery FAQ
Is Tools Discovery Free?
There’s no cost to take advantage of Tools Discovery. However, there are fees for using the products and tools that it recommends. While the fees for each product vary, many users find that the fees are minimal compared to the profit potential for using the recommended products.
Is Tools Discovery Profitable?
Through machine learning, Tools Discovery provides personalized recommendations for the products and trading approaches most suited to your preferences. Before making trades, you can easily compare the real-time profitability of different products and strategies through the simulation feature. The tactics are updated every few hours, which allows you to review many trading approaches and diversify your trades for optimal gains.
Who Can Benefit From Tools Discovery?
Bybit's Tools Discovery offers exciting benefits to all traders. For beginners, Tools Discovery enables traders to quickly get started without spending considerable time and energy studying the markets and different trading strategies. Experienced traders can benefit by simulating results from different methods, and exploring new products and techniques with which they may be unfamiliar.
How Do I Start Using Tools Discovery?
Visit the Tools Discovery page to get started with your customized trading journey now.
Conclusion
Tools Discovery makes it easy for beginners who have minimal experience with the crypto market to get started trading. It’s equally suitable for experienced traders who are ready to reach the next level, offering a user-friendly interface that makes exploring and gaining insight into the crypto markets easy. Users can easily make intelligent trading decisions with the assistance of its intuitive design and powerful features. Try Tools Discovery today to take advantage of its many helpful features.
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