The value of cryptocurrencies is increasing exponentially.
With such a significant growth comes an explosion in market trading, which helps the currency keep growing in the long run.
It can be a nice choice for cryptocurrency newbies since they don’t need their own cryptocurrency wallet and can get a feel for the market movements without needing to buy it outright.
Where To Trade Cryptocurrency?
There’s a range of established Foreign Exchanges and brand new platforms embracing cryptocurrency trading. Find the one with the features which work for you.
Some popular cryptocurrency exchanges includes Binance, eToro, Bitfinex, Cointree, Uphold, Terrexa, Coinmama, CEX.IO, Indacoin, CoinSwitch, etc.
Pick the one that suits your trading style the most.
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How Can You Pick A Trading Platform?
There are some of the main difference which includes –
The Currencies Available: Bitcoin to USD is broadly available, but other fiat and cryptocurrencies may not be available at all platforms.
Leverage Available: Leverage allows you to trade beyond your initial deposit and multiply your gains, which suit those who prefer higher risk plus higher rewards. You can usually find leverage up to 20:1 with cryptocurrency, based on your opted platform and currency pair.
Trading Features: Stop-loss features, hedging, and other options can give you even more control over your trading. Experienced traders may take the advantage from these, while first-timers may like to keep it simple.
Minimum Investment: Make sure that you find out the minimum amount that you can invest and understand whether or not it works for you.
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How Does Cryptocurrency Trading Work?
Market trading may sound like something that is reserved for the financial elite. But it’s not like that. The cryptocurrency growth is accompanied by the growth of online currency exchanges as well as trading platforms where anyone can take part in the market speculation.
All you need to know is that how does it work?
Trading cryptocurrencies is what works the same as Foreign Exchange, but rather than selling and buying fiat currencies, traders buy and sell cryptocurrencies.
For instance, you may be on the changing price difference between the BTC and USD. Also, you may be on the changing values between two cryptocurrencies like by trading a pair of BTC:ETH.
In case you think bitcoin will increase in value, then you may go long on it, meaning that the betting will increase in value relative to the USD.
In case you think that bitcoin will decrease in value, then you might fall short it instead, meaning that the betting will decrease in value relative to the USD.
You are not really buying bitcoin or any other cryptocurrency with cash. You are simply placing an order on the market, instead.
Similar to Forex market trading, crypto trading works by exchanging one currency into the other, vice-versa. You will often exchange a fiat currency into a cryptocurrency and then, back into a fiat currency, though, traders and exchanges allow cryptocurrency-to-cryptocurrency trading.
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The Topnotch Advantages of Cryptocurrency Trading
Trading cryptocurrencies comes with a lot of advantages. A few of them include –
Fast Exchanges With Cheap Fees
For each trade, the exchange platform you are using will take a small commission for the service they are offering. This is certain. Where crypto trades vary from their fiat currency, they are equivalent in the size of this fee. Since the fees for transferring cryptocurrencies are very cheap than that of the credit card and bank transfers, market-trading fees are quite cheaper than forex-trading fees.
Traders get the profits when the price of the currency takes large strides, and cryptocurrencies, on the other hand, often experience large price movement. While this also increases the risk, you can still make a lot of profit with a relatively small bankroll.
Open All Week
You trade stocks and commodities amid the business hours, and you can usually trade forex during amid weekdays. On the other hand, cryptocurrencies can be traded 24*7, anywhere and anytime, depending on the exchange.
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3 Simple Steps To Get Started
There a few trading platforms which will suit your needs the best. It is worth comparing them with the others in detail and trying demos where available to find the one you like the most.
Step #1. Understand the platform
Crypto brokers often provide their own trading platform, and each one’s system will be different from one another. You will have to put in the time to understand how the platform works, what are the features and how to use it.
When you access a broker’s trading platform for the first time, you may feel overwhelmed, which is normal. You will need to spend some time with it and continue doing your research in that. Just after a short while, you will get comfortable with it.
Step #2. The perfect shot
The adage – buy low, sell high – holds for cryptocurrencies just as it holds for any other type of investment or trading. Crypto markets move up and down, and significant movements up are usually followed by sudden dips in the market.
Step #3. Time to get in
The best approach to learn how to trade is actually to trade, period.
Once you have done all the homework and learned all the theory, you will have to get your feet wet. So buy some cryptocurrency, set your limits and get started.
Always remember that it’s a kind of gambling. Whenever you trade, go in by expecting to lose your money, and you will never be disappointed.
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As mentioned earlier, trading cryptocurrencies works almost the same as trading fiat currencies. If you learn the theory behind trading these currencies, then it will greatly benefit you. Where profits are never promised in trading, you can take a few steps to protect yourself from heavy losses as well as to improve your understanding of how the markets move.
Indeed, there is a lot to know more about trading. But, the only way to learn is by doing it. It usually means choosing a platform, setting some money aside that you don’t mind losing and starting to learn. It will also help you developing a good understanding of Blockchain Technology. As simple as that! Have a Good Luck!
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