What is paper trade?
Paper trade or mock trade are terms used to describe simulated trading which allows investors and traders to experience the buying and selling of assets without risking any of their hard-earned money.
Why paper trade?
Cryptocurrency is an emerging asset class with a lot of potential growth. However, considering its high volatility, crypto-trading is often portrayed as very risky. Unlike the traditional stocks or commodities market, cryptocurrency exchanges open 24/7 – 365 days a year. Neither will there be Ceiling nor Floor which gives you times out to cool down and help with risk management.
Roostoo – a startup from the University of Southern California sees this problem as a challenge to be tackled. The team of bright young minds has created the beginner-friendly and sleek looking paper trading application – tailormade for just cryptocurrency.
With Roostoo, newcomers and veteran traders alike can now enjoy the safe space to explore and experiment their investment or trading tactics and strategies.
What are the benefits?
Newcomers and Experienced traders will be able to learn:
- Different order types
- Profit/loss calculation
- Real-time price movements
- Exchange simulated trading fees
- Portfolio & risk management
- Explore various trading styles
- Experiment new techniques
- Cryptocurrency market’s nature
without any risk of real capital before deploying successful methods later on to their live accounts for better trading experiences and profits. Hence, this will help familiarize the users and give them a clearer picture of how the crypto market works.
To get the most benefits from paper trade, traders and investors should consider the same risk-reward and make decisions as if there is real money at stake. Oftentimes paper trading can give misconceptions of the real trading as being relatively easy. Since investors might forget to calculate in the stress, emotions, and financial constraints which usually occurred in the real market.
I want to learn more!
NewsFirstLine and Roostoo have come together in an effort to enhance the learning experience of cryptocurrency trading with our Paper Trading Competition. There will be Training Ground for interested participants to join freely at any time to train their skills and a Pro-League Competition where paid-participants can join to compete for the price rewards of 0.5BTC and more. You can find out more about the details here.
