Source: Nau2018 Shutterstock
Fear of missing out or FOMO, is known as a type of social anxiety. And its concept is also widely applied in the investment industry. People would sometimes feel frustrated towards this feeling when hearing good news from successful investors while they are missing out the potential good chance to make any profits, especially for the newbies who want to earn money by trading cryptocurrency. Therefore, a trading simulator is emerging as the times require, which provides people with a chance to practice and test their strategies without any risks before they start the real-time trading.
What can you improve in a trading simulator?
A trading simulator is similar to the real-time trading system from the aspect of function and the interface. It displays the real-time price of the market and is equipped with all kinds of trading tools. The biggest difference between them is that the simulator is a risk-free tool and you do not need to invest any actual money to do a demo day trading. Most brokers would provide a virtual amount of bitcoin for users to experience the ins and outs before doing trade with real money.
Due to the changeable market, it is essential to keep learning and educating yourself during trading, especially for beginners who want to have any success in the cryptocurrency markets. You get the full experience of the markets and the trading platform, without the pressure of risking your actual capitals. The more you practice, the more experience you would gain. No matter if you are a novice or an experienced crypto trader, you can definitely improve the skills and strategies in a demo trading. Now, let’s check out more about the trading simulator.
Pros of the trading simulator
- Risk free – Without costing any real funds, you are able to test your strategies under a risk-free circumstance, and form your own trading style.
- Experience – If you are a crypto beginner, it is the best way for you to get familiar with the market by practicing opening and closing positions, applying stops and limits. In addition, you can view margin requirements as well as track the profit and loss. If you are an advanced crypto trader, you can accumulate technical analysis and methods by trading different pairs and try different portfolios in the simulator, which can strengthen your fundamental skills.
- Notes taking – By taking notes and analyzing your trading performances, you can correct the mistakes and form your trading strategies before starting with real money.
- Emotion training – With long-term demo trading, you can observe yourself during the process, and figure out what kind of investor you are and adjust yourself, which is helpful to build up a stable mood and attitude towards the real market
Cons of the trading simulator
Are there any disadvantages of the trading simulator? Because you are trading without risking your real capital, sometimes it is easy for you to not be that serious during the trading.
- Overconfidence – One might be over confident after earning a great amount of virtual profits in the simulator, which can be dangerous for real-time trading. You will need to realize that being careful with every transaction will help you develop good trading habits in the real trading world.
- Deposits – There are some brokers who will require an initial deposit to use their demo accounts. So it is necessary to confirm before you sign up.
To conclude, practicing in a trading simulator is actually a training of emotion management and experience accumulation. Its advantages are far more beneficial to its disadvantages.
Do simulated and real-time trading on Bexplus
Registered in Saint Vincent and the Grenadines, Bexplus is a leading crypto derivatives trading platform offering 100x leverage futures trading on BTC, ETH, LTC, EOS, XRP, etc. Bexplus is trusted by a million users and offers services to over 30 countries, including the USA, Iran, Japan and Korea.
Features of the Bexplus demo account
- Easy creation – Once registered with an email address and the verification code, you will automatically get a 10 replenishable BTC in your demo account.
- No deposit fee – You do not have to pay any real money to start the simulating trading and can practice at any time you like.
- Transparent interface – You can learn to analyze the market and use the tool-kit with the demo account on the web page or App. Everything is well displayed and easy to figure out.
How to open the trading simulator?
After sign-up, click “Trading” on the top of the homepage. Then you are in real-time trading. Just click “Trading Simulation” to switch to the virtual trading and start to do the demo trading.
Learn More about Bexplus
Follow Bexplus on: