Do you eagerly want to start trading Cryptocurrencies but don’t really know how to get started? Luckily, with the Phemex and Bybit simulated trading platform, there’s no need to struggle just yet. Let’s dive into this article and learn more about the crypto-world together.
I am a big trader and have been for the past 6 years and I have tried countless simulators. Some simulators work well, especially for beginners, but others were just too complicated to use and kind of a bit overwhelming.
But, these exchanges that I’m about to share with you have made it extremely easy to set up a paper trading account and learn as you go. It looks just like any other exchange, but it doesn’t actually take your money! This allows you to practice your strategies without taking risk. The simulator uses fake money with real prices, so you can see how much you can make or lose on each trade.
If you’re new to trading and you want to learn how the best thing to do is to sign up for simulated trading software, in this blog post, I’ll be giving you a thorough guide on how to start with Phemex. Click on this button below if you’re interested to start with the Phemex Simulator for FREE:
You just need to put in your email upon signing up and after you’ve finished entering this information, double-check that the email address you entered is correct. You will be able to do so by clicking a link sent by Phemex in your email. If you can’t find the link in your inbox, you might want to look in your spam folder.
Then, they’ll send you a verification code and you verify your current password. Make sure the email address you registered in is active and safe because all information about your Phemex accounts will be sent to it, including OTP tokens, various pertinent updates, and security upgrades, as well as 2FA authentication.
What you want to do once you’re in the simulator, is you want to transfer money into your contract trading account, so you’ll move it from your spot account to your contract trading account. Find a pair with high volume for the day and just start practicing.
Here’s a quick video about Phemex Simulator:
But before we can dive in to actually start practicing, we need to know everything about cryptocurrency day trading, what it is, and what benefits it can give to us day traders!
What is Day Trading Crypto?
The strategy of crypto day trading entails initiating and exiting a place in the market on the same day. The entire point of day trading cryptocurrency is to profit from tiny market movements. Because cryptocurrencies are volatile, day trading in the crypto market may be quite rewarding.
The primary motivation for day-trading crypto is to simply make money. Cryptocurrency values are more volatile than those of any other asset class, which creates an opportunity for traders who know how it exactly works. The crypto market could be a great opportunity for you if you have a solid trading plan and can evaluate trends.
Day trading cryptocurrency is also advantageous because it provides you with short-term profits. You can conveniently day trade and profit from the market in a short period of time rather than trading for the long term.
What is Simulated Trading?
Simulated Day Trading allows you to trade financial assets without putting any money at risk. Instead, you’ll be trading with virtual money. The greatest day trading simulators will reflect real-world market conditions and include all features.
3 Reasons Why You Should Start Trading in a Simulator
There are 3 reasons why you should start trading in a simulator before you move to live money.
- You don’t want to start using real money and risking real money right away before you’re really confident in your strategy and your ability to hit your profit targets on a consistent basis.
- When you’re starting in the simulator, you can feel comfortable using a looser stop loss like maybe 5% instead of 1%. Having a looser stop loss will allow you to spend more time analyzing the price action, feeling comfortable in the trade, and not having to rush. It’ll let you move your orders around if you need to, and give yourself a little bit more time to actually manage that trade. Instead of feeling really overwhelmed. You get stopped outright away. As you get better, you can slowly narrow your stop loss more and more.
- Every day trader (like me!) eventually comes up with their own spin on a strategy.
What is Phemex?
First, let me just say that there are plenty of good platforms out there. Phemex is definitely the ONLY best platform. I just personally really like Phemex.
Phemex is a great platform that allows people from all over the world to trade digital currencies in a secure and easy-to-use environment. Its efficiency is quite high and different trading techniques can be used here in a safe manner.
I’ve used Binance, crypto.com, Coinbase in the past, and BitSeven before it went under. I like Phemex because:
- It has a free simulator or paper trading platform.
- I like it because all the leveraged trading is done against the US dollar except for Bitcoin (which is done against Bitcoin). I trade a lot of the other ones but not Bitcoin. And I like leveraged trading because when you make money, you don’t have to worry about that going up or down in value like you know that money is safe until you’re back in a trade.
- Number three, it’s really all in one, It has spot trading (no leverage) and contract trading (with leverage). It also has staking so you can make passive income with it, and everything’s kind of in one place.
Phemex is probably actually better to practice on because it’s allowed everywhere. BitMEX has restricted the US, Japan, China Ontario Canada, and Quebec Canada. So if you live in any one of those places, you might as well use a simulator that you can actually use the real platform when you’re ready, as opposed to having to switch platforms and then getting used to like the little nuances between platforms.
I personally use BitMEX to learn because I didn’t know about Phemex, but then, I went to Phemex and just started using it up until now. Although, I haven’t actually used their simulated platform, however, they do have one and if I could go back to when I was learning how to trade, I would definitely use it.
Step-by-step Guide on Simulated Trading
Phemex, as one of the best-simulated trading platforms, allows you to trade without incurring any fees. The following are the steps that must be followed in order to trade with Phemex:
- Once you’ve logged in, go to the top menu and go over the header that says ‘products.’
- You must then select ‘spot trading’ from the drop-down option.
- The next step is to select the market that you want to trade. You have the option of using assets such as Ethereum or Bitcoin.
- After that, you’ll need to input the amount you want to buy or sell in USDT.
Next is, transferring money from your spot wallet into your contract trading account:
If you are unsure about using various platforms to do simulated trading, there are other options such as writing the trades down on paper or in an excel spreadsheet. However, it doesn’t give you a good experience of trading.
It’s really, really different writing your potential entries and exits out on a sheet compared to actually entering and exiting. So I would personally recommend using a simulator overdoing this kind of strategy, or even like just going live and using the smallest possible amount. You can trade anything less than $10 and it’s fine, especially if you did want to use my risk management strategy and try to get your stop loss as close to 1% as possible. Even if you use 2% like if you’re trading only $10, that’s a risk of one to two cents per trade. So it’s really very minimal risk for a really good learning opportunity.
If you do not like simulators, I would recommend that option.
Other than simulated trading, here are other awesome features Phemex provides once you sign up for them:
- Phemex provides a welcome bonus of up to $100 for new users. People who establish an account on Phemex may expect a slew of benefits and features to help them get started on the site.
- It is incredibly user-friendly; even a non-specialist would have no trouble navigating the site and beginning to trade volume. The site also includes a wallet interface, which benefits users even more.
- Phemex has a mobile app that you can use at any time and from any location.
- It doesn’t require a full KYC in order to use the platform.
Introduction to Bybit Simulated Trading
Trading cryptocurrencies is unquestionably one of the most profitable choices currently accessible on the market, but many investors are concerned about the risk of losing money due to a lack of understanding of the indicators used in trading.
That’s why, before moving on to real-money transactions, it’s a good idea to practice different strategies and indicators using simulated trading. Users can use the Bybit testnet to simulate trading using both the platform’s indicators and those that can be found for free online.
How is Bybit Sim different that Phemex’s?
In certain ways, Bybit is nicer to Phemex. Phemex, on the other hand, is greater than Bybit in certain areas.
For example, Bybit is more user-friendly, has better liquidity, and has a more precise 24-hour turnover. Phemex, on the other hand, is speedier, has the same configuration as live trading, and offers a user-centric trading system that can handle 200,000 trades per second.
Overall, both platforms have their distinct features and it is up to you whichever works the best. Just keep in mind to choose a simulator that has a nearly similar feature to live trading. Because it’s going to be a hard time switching to different platforms when you’re starting from scratch and practicing your entry and exit strategy. Get familiar with the simulated trading features and practice for at least 3 to 4 months until you’re ready to get started with the REAL game of trading.
That is all for simulated trading using Phemex. If you have been looking through my TikTok channel, I have been endlessly talking about Phemex’s great features. You can check it for more videos where I talk about day trading crypto (simulated, leveraged trading).
If you have any questions, comment them down below!
Read more Cryptocurrency topics HERE:
- The Secret Cryptocurrency List: 7 Resources Every Trader Needs
- Crypto Trading Software
- My Top 3 Best Day Trading Strategies
Know more about me here on TikTok: Crypto With Martina