Basis Guide About Cryptocurrency Trading


Trade is a fundamental concept of the economy, which includes the purchase and sale of valuables. These may be goods and services for which the buyer pays the seller some compensation. In other cases, trade may involve the exchange of goods and services between the parties to the transaction. In the context of financial markets, tradable assets are called instruments. These can be Forex currency pairs, options, futures, margin products, cryptocurrencies, and other useful tools.

Just about five years ago, cryptocurrencies were of interest only to professional IT specialists. Today, many people already earn money on it or want to start! How can this be done? The most profitable of them is selling crypto on specialized sites. In this article, we’ll tell interested users how to find a high-quality cryptocurrency trading platform.

What Is Crypto Trading?

Cryptocurrency trading or crypto trading is speculation on the price movements of digital currencies. This type of trading includes the exchange of one crypt for another, the purchase and sale of coins, as well as the exchange of fiat money for cryptocurrency. Crypto trading usually revolves around the purchase/sale of assets but not the possession of any real currency.

Features of Cryptocurrency Trading

Before the users start trading crypto, it’s necessary to study the nuances of the market and take them into account. Here are the main points:

  • high volatility;
  • liquidity;
  • low entry threshold;
  • round-the-clock access.

High volatility. Cryptocurrency market quotes are very volatile. They can change at breakneck speed in a short period of time. Even in ten minutes, the situation may become radically different. And a user can make good money on these fluctuations. Coins of some blockchain projects often show growth from 100% to 500-1000% and above percent per day.

Liquidity. All digital coins that are included in the conditional top 20 are considered liquid. The most famous among them are Bitcoin and Ethereum. This means they can always be bought and sold, and supply and demand will always be at a level close to the market rate.

Low entry threshold. Clients can also buy cryptocurrency on exchanges for the amount of several dollars. Moreover, the very initial deposit of $10 is absolutely normal for scalping but on the stock market, it’s impossible to earn adequate money.

Round-the-clock access. Cryptocurrency exchanges operate 24/7. Traditional brokers provide clients with access to classic markets only at certain times, as a rule, these are certain hours from Monday to Friday.

How to Find a Suitable Platform for Trading?

Crypto exchange is a complex system with many options. Each portal has its advantages and disadvantages, there are no ideal ones. Let’s try to figure out what a novice cryptocurrency trader should pay attention to:

  • conditions for depositing and withdrawing funds;
  • security;
  • platform functionality.

As a rule, replenishment of the trading account is free from the exchange, but not always free for the user. If a client tops up with a Visa or Master Card, the fees may amount to 2-4% of the amount. The commission’s size is determined by the trading platform and much depends on where to withdraw money.

99% of cases of cyber theft on exchanges are possible with the negligent attitude of the user to security issues. Securing an account is an important condition for calm trading. This primarily includes two-factor identification (2FA), when the client receives a code by e-mail or phone in addition to the selected password on the platform’s website. Without confirmation of this code, any procedures on the exchange will be blocked. On some sites, it’s possible to configure authorization only from certain IP addresses. If this address is static, then the chances of a hacker entering under your name are practically zero.

The more tools the platform provides in the trading terminal, the better — opportunities for advanced market analysis open up, which means entering or exiting the market will be more efficient.

Read also: All about Ethereum Classic Cryptocurrency

Basis Guide About Cryptocurrency Trading

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