What is Paper Trading?
Paper trading in the context of cryptocurrency or any financial market is a simulation or practice trading process that allows individuals to trade virtual assets without using real money. Crypto paper trading is like a "pretend" trading environment where you can test your trading strategies, understand market dynamics, and gain experience without risking your actual funds.
How to start paper trading on WunderTrading.
First of all, you will need to create the Paper Trading API on WunderTrading. To do this please go to "My Exchanges" tab and click the Add Exchange button.
In the side menu that will appear select the tab "Paper trading". After that, you can select any exchange from which you would like to feed the real market data. By selecting a specific exchange you will be able to trade trading pairs available on this exchange. All the paper trading accounts will be trading on the Perpetual markets.
Type in the name of your Paper Trading account and select the mode of your trading. When you click on the "Connect an Exchange" button. And that's it. Your paper trading account will be created and you will have $10,000 balance of virtual currency to start.
At any time you can renew the trading balance to 10,000 by going to the "My exchanges" tab, finding the paper trading account, and clicking the renew button.
Important!
You can create up to 2 Paper trading accounts. Account subscription limitations will apply.
Why use the paper trading account?
There are a number of benefits to start from a paper trading account:
Virtual Funds: In paper trading, you receive virtual funds, often referred to as "play money" or "paper money," which you can use to buy and sell cryptocurrencies. These funds are not real and have no actual monetary value.
Real Market Data: You trade using real-time market data and prices. This means that the price movements and other market conditions reflect what is happening in the actual crypto market.
No Real Risk: Since you're using virtual money, there is no risk of losing real money. This allows you to experiment with different strategies and learn from your mistakes without financial consequences.
Learning and Skill Development: Paper trading is an excellent way for beginners to familiarize themselves with trading platforms, chart analysis, and various trading strategies. It can also help experienced traders refine their techniques. Tracking
Progress: You can track and analyze your trading performance in the paper trading environment. This can help you identify areas where you excel and areas where you need improvement.
Testing Strategies: Traders often use paper trading to test new trading strategies, indicators, or techniques before implementing them with real funds. This way, they can gauge the strategy's effectiveness without risking their capital.
Market Conditions: You can practice trading in various market conditions, such as bull markets, bear markets, or sideways markets, to understand how your strategies perform under different circumstances.
Emotion Control: Paper trading helps you control your emotions and reduce the psychological aspects of trading since there's no real money at stake.