Building and trading synthetic cross-pairs in the Middle East

Building and trading synthetic cross-pairs in the Middle East

The Middle East consists of different countries with different cultures, religions and politics. Because of these differences, each country has their currency that can be pegged against other fiat currencies, such as the US Dollar or Euro, for example. 

Traders interested in getting involved should look at what is happening in your local market and how it compares to other markets around the world through Intermarket analysis. 

By building a cross-pair, you can take advantage of differences between these regions and utilize arbitrage. 

For example, if there is a high demand for a coin in one area while another area does not have much interest, you might expect the price of that coin to increase. 

Seeing how markets are trending can provide clues on where prices will go in the future.

Building a synthetic cross-pair requires understanding arbitrage, which is buying and selling an asset simultaneously in multiple markets to profit by exploiting differences in prices for the same purchase. 

Cryptocurrency provides opportunities because it is listed in many different currencies compared to traditional forex trading, which only involves fewer foreign currencies. 

Each cryptocurrency acts like its own company based around its own money, with most exchanges having this functionality built into their platform.

Getting started

The first step is to get registered and start trading with the exchange. Ensure you’ve read and understood how to safely store your crypto by moving it off the exchange or online wallet. Check out our other blog posts on cryptocurrency security to learn more about this topic! 

To make a deposit, you’ll need to take note of your unique BTC Deposit Address (which looks like a long string of random characters) that you will be sending your Bitcoin from another bitcoin wallet or exchange into BitOasis’s digital wallet. 

It’s essential that you send the correct type and amount of Bitcoin for the trading pair selected. You can find deposit instructions on the trading page under ‘Buy’.

Once your Bitcoin has been confirmed, you can now make a trade. You’ll be able to see what price you accept by scrolling down the different prices quoted in the ‘Best Buy’ column. Prices differ for each trading pair because of supply and demand. Once you’ve found the most suitable buy order, click it and choose an amount of BTC that you’d like to purchase & your wallet will automatically calculate the right amount of ETH needed to complete the transaction. 

Your new wallet balance will reflect your purchase minus any network transaction fee paid. Now you only need to withdraw your ETH to a wallet of your choice or leave it on the exchange.

How to trade

The process of trading DASH/BTC for XRP/ETH with BitOasis is very similar to buying BTC. Click ‘Sell’ instead of ‘Buy’, select your desired price, then deposit & trade just like before!

What are my options when selling crypto back?

Once you have built up some liquidity in trading through BitOasis, you have the option of converting this into fiat currency using direct wire transfer via Aqaba or UAE Exchange. Alternatively, you can keep what you’ve earned in crypto by withdrawing it straight back into an exchange that accepts crypto deposits from the UAE.

What are some excellent cryptocurrencies to build a basket with?

It’s subjective because it depends on your trading strategy & risk tolerance. We recommend that you choose a basket of 5-10 currencies that you can use for different use cases in daily life. 

Here are our top picks: Ethereum (ETH), Litecoin (LTC), Monero (XMR), Dash (DASH), Waves Platform (WAVES). 

These currencies all have extremely active communities teeming with developers whose sole purpose is pushing their respective money forward through innovative use cases.

Is there any risk

Trading in volatile markets means that the value of your portfolio can go up and down rapidly depending on market sentiment, news or world events. It can be stressful to deal with, but you can use some simple strategies to reduce the risk involved when trading & buying/selling cryptocurrencies. 

Some of these include dollar-cost averaging, setting limit orders at specific price targets, using stop-loss orders when selling your coins and keeping track of market fundamentals such as team updates and new partnerships. You need to find a strategy that works for you individually, which will require some research! We recommend reading this article from a coin desk—read here for more forex and ETF trading advice.

Follow TechR for more!

Admin Techr

TechR are a team full of web developers, freelancers, tech bloggers, and digital marketing executives. We are passionate about the latest technology news, upcoming gadgets, business strategies and many more upcoming trends. We spread the tech news with passion and tenacity.

Leave a Reply

Your email address will not be published.