Ultimate Guide on Trading Cryptocurrency
I am sure you have regularly stumbled across the news from the world of cryptocurrency trading. It has intertwined with our lives so firmly that it is simply impossible to ignore. Every day more and more traders enter the market, making profits and achieving their goals. Everyone wants to know: what is cryptocurrency trading? Is it a magical pill that would change your life? Or is it a challenging path, filled with fears and insecurities.
In today’s article we will explain the basis of cryptocurrency trading for beginners. Yes, it is not for everyone but it opens up a world of new opportunities and there is a high possibility that you will want to dive into that world!
Cryptocurrency trading reached the peak of its popularity after Bitcoin and Ethereum coins have occupied firm positions on the market. So what types of coins are there? Most of the coins, which are often called simply ‘cryptos’, are powered by the Blockchain technology. Unlike fiat currencies, Blockchain-powered cryptos are decentralized and are not controlled by any regulatory authorities, central banks or countries. Even though crypto trading is not an accepted legal instrument in most of the countries, it is still powerful enough to change the financial landscape across the world, so it becomes harder and harder for authorities to ignore it. This market opens a variety of opportunities for trading and investments, which attract millions of people from all corners of the world. Want to be a financial badass and master trading cryptocurrency sitting in your cozy chair? Then stay tuned!
So how to start cryptocurrency trading? We are sure that this question is one of the most popular among top Google requests along with ‘Keanu Reeves in Matrix 4’ and ‘Where is my letter from Hogwarts?’ Luckily, the basic principles of cryptocurrency trading are the same as of classical trading. However, there are a few basic differences and we are ready to share them with you!
It’s quite difficult to make profits on fiat exchanges.
It’s a bit simpler to start with crypto trading!
What’s better – session trading or 24/7?
If you don’t have time to complete a cryptocurrency trading course or you don’t want to trade on your own, the best solution will be to use a combo of a trading bot and provider. The point is that the bot will trade for you, using signals of more experienced traders (our top-providers). To get additional information on providers, bots and their signals just press the link. But don’t complain that your coffee is cold and you spent hours reading our spectacular articles! So how to make money trading cryptocurrency with bot’s help? Everything is easy as A-B-C! A program that is based on a particular set of strategies trades for you 24\7. It is just a soulless algorithm that doesn’t need time for rest and meals, cuddles and holidays! If you are new to cryptocurrency trading, using both a crypto bot and provider is a must, because you won’t have to analyze the market on your own! Just subscribe to a chosen provider and count your profits. Moreover, you won’t have to struggle looking for reliable providers, because we have already analyzed all of them and have listed Top 10 providers that are reputable and honest. Isn’t it a dream coming true?
Margin And Leverage Cryptocurrency Trading
Cryptocurrency trading is full of different tools and instruments. Knowing even some of them will give you more opportunities for trade and will present more chances of earning profits. Have you ever heard of leverage and margin trading cryptocurrency? If not, continue reading (if yes, still do). During cryptocurrency margin trading you will need to borrow selling and buying power to allocate a part of the funds, which will be accessible only when the trade is over and when you return the borrowed capital. Margin, in this case, is a particular sum that a counterparty (usually a broker or exchange) deposits. Popularity of margin trading leads to the increase in quantity and sums of operations, so it becomes more difficult to track the speed of operations, market fluctuations and changes. However, a big number of small deals leads to higher liquidity of the market and therefore stabilizes it. On the other hand, leverage trading cryptocurrency allows trading the amount that you don’t possess at the moment. Usually crypto services provide 1:10 leverage. This means that for each dollar you have, you will get a 10-dollars buying power. Even though this assumes higher risks, potential rewards can also be sky high.
What You Should Know Before Starting Trading Cryptocurrency?
By now you already know all the basic details about cryptocurrency trading. Of course, you still have lots to learn but you already have a foundation and can start your voyage to new experiences! If you still ask yourself how to make money trading cryptocurrency we are ready to give you more details. Fasten your seat belts, because we are about to take off!
The first and probably the most important thing you should remember (and print it out to place on your work desk) is that the crypto market is extremely unstable. You can make huge profits in a second and a few moments later lose it all. And it doesn’t matter whether you are trading well-known coins like Bitcoin or any other currencies. That’s why before you start cryptocurrency trading it is better to learn how to lower your risks, how hedging works and what the right timing is. Keep in mind that crypto exchange is not a division of a common stock exchange and it has its own laws and features.
We can suggest using Coinbase exchange or Coinbase Pro (which has lower fees). However, not depending on the exchange you choose, remember that it is not Wall Street with common mechanisms and different specifics. If you are new to trading cryptocurrency, you may want to try out stock trading on various stock markets. For example, GBTC trust owns Bitcoin and sells its shares. Thus you won’t have to trade cryptocurrency directly but will have a chance to learn more about Bitcoin and will find new ways of making profits. There are many cryptocurrency trading reddit topics, so you can do some research and find the most preferable strategies.
For newbies of cryptocurrency trading, using Square Cash App or Robinhood may also be a great option. The Square Cash App allows buying and selling bitcoin, and you can send it to a wallet outside the system. This means that you won’t have to master all peculiarities of trading, won’t have to choose your own cryptocurrency trading strategy and won’t need to understand how exchanges and wallets operate. Robinhood has the same logic as The Square but selection of coins is more impressive and they are working on granting transfers. These platforms are rather decent and can be a great starting point for mastering crypto trading.
Not to bore you with extra details, we have collected all the information in one place and you can learn more about trading and its peculiarities in the following article. Click the link and we guarantee that your life will never be the same again!
There are many classes of assets on the market but none of them can compare to cryptocurrencies. Cryptocurrency trading is attracting users from all corners of the world, because everyone wants to stay at home, make profits and experience all the thrills of making right decisions! Unfortunately, the market of crypto trading is quite young, so consumer protection is rather weak and traders need to think about their safety on their own. Will something change? I hope so but for now investors need to take all possible measures to protect their wallets. Any cryptocurrency can make you a millionaire or may disappear overnight along with all your money. That is what makes trading cryptocurrency so scary and exciting at the same time.
Big chances are never small stakes, so if you want to learn how to start trading cryptocurrency and to make money, you need to be ready for all the twists and turns. The only thing is clear: cryptocurrencies are strengthening their positions and they are definitely here to stay, introducing more and more millionaires to the world. Do you want to become one of them? Use our guidelines, remain calm and enjoy the ride!