Cryptocurrencies have become more widespread than several years ago. You may remember when the first mention of bitcoin was something odd and unusual. Its price was meagre. But now, the prices of crypto coins are impressive.
Crypto trading is the whole process of gaining through the speculation based on the fluctuations to have profit. This phenomenon led to the internet-based exchange of crypto currencies to other crypto money or fiat money. With the crypto exchange account, you buy and sell coins or just exchange them, as there are many coins available online.
Such exchange processes are divided into two categories. One is centralized, meaning all your transactions are made with a central authority through your account to store and exchange your coins. The other one is called decentralized, which means all your transactions and exchange are done peer to peer. The latter prioritizes privacy.
Is crypto trading profitable?
The exchange can be from coin to coin or fiat money. Both ways predispose income based on calculations and fluctuation of any given cryptocurrency. If approached smartly and well-prepared, the crypto trade is a profitable online practice. Learn how to trade cryptocurrency, and these 5 main points explain why it’s great:
- Crypto trading is like a free market
- It’s dynamic and never-sleeping
- It’s not government-controlled and not manipulated by any third parties
- Crypto trading can be initiated by anyone with a minimal budget
- The process of trading cryptocurrencies is immediate
All you need is to do research and be very careful. When it comes to earning digital money, you better be prepared, as it can take some time before you may start earning.
7 main benefits of crypto trading
Besides why it’s profitable to start your crypto trading journey, you’ll benefit from this in 7 main ways.
- Appealing payment structure. Along with the payment speed, the flexibility of transactions and lower fees make crypto trading more convenient and profitable.
- Market volatility. Although market volatility is about changes, there’s an underlying opportunity with possible intraday price changes of coins. So, learn how to be opportunistic and well-prepared.
- Smart contracts. A blockchain feature ensuring that all conditions and terms are met. This makes all participants sure about the outcomes without a need for third-party involvement.
- Exposed leverage. With tying up a comparatively trivial amount of your assets, you may gain a large exposure to the market of cryptos. In other words, you may gain more than you invest.
- Automation of crypto trading. Another beneficial side of crypto trading is a chance to employ trading bots with the logic making profits for you.
- Transparency. Thanks to blockchain technology, you get the most transparent transactions. Your wallet can be visible without details. This makes the process less troublesome.
- Safety. With a reliable platform and a trustworthy wallet, all your transactions are safe. Thus, you don’t need to worry about your personal and financial data and your coins’ loss.
What is the best crypto trading platform?
A critical aspect of digital money is your approach to choosing your platform. With the rise of popular cryptocurrencies, the platforms didn’t take too much time to appear on the stage. With them in the digital arena, crypto trading has become a process that needs your understanding and cautiousness.
Cryptocurrency trading platforms are places where you exchange your coins with other types of coins. Also, you can exchange it to fiat money. Thus, when selecting your platform, you must consider aspects like safety, easiness, clarity, type of the platform, etc. There are some well-known ones to consider:
- Bitcoin ERA. Everything is clear and easy to understand at this platform. There you’ll find some interesting and useful information, with a downloadable app. With the first $250, you may start investing with Bitcoin ERA.
- Bitcoin Academy CPA. As the name suggests, besides being an exchange platform, it’s more about a place where you can learn more about the notion of bitcoins. Besides, understanding the basics is quite useful in taking critical steps in the exchange of your coins.
- TradeStation. Another unique exchange platform offers its easy steps in understanding the cryptocurrencies. With its exciting guides available online, here you’re not only to start investing but become aware of the required nuances.
- Coinbase. With privacy as the main component, you exchange your coins, earn rewards, and get updates regarding the crypto trading. Also, the platform offers to send and exchange coins with other members quite fast.
- Robinhood. it’s a more general exchange platform. You can do several financial maneuvers on the side besides crypto exchange. It offers a downloadable app, as well.
How to compare brokers?
A trading platform is a software where you, as a trader, open and close your trading. So, you manage your crypto trade. On the other hand, the broker is a kind of sales representative who will negotiate on the behalf of the traders. The brokers work for companies and firms with the aim to sell or buy on the money provided.
Why is there a need for a broker? If you’re new and don’t feel the market, your trading with cryptos can be done with the help of the intermediary who’ll negotiate on your behalf. Thus, brokers can be useful. But, if you have substantial knowledge and feel the market, why not try crypto trading on your own?
As the myriad of broker options is online, you’re to decide which to pick. If you’re a beginner and still desire to trade with cryptocurrencies, choosing one becomes inevitable. The dilemma of choice can be a game of tantrum where you can lose the thread of what’s going on, as the market of digital money is always on the go.
Still, don’t forget some important factors to look through before you pick your broker platform. Pay attention to the following while making your decision.
Any platform claiming to be a decent one needs to have a good app compatible with mobile devices. Since the updates, news, and the exchange rate may change or fluctuate. Stay in tune with an excellent app that will provide the needed information. Thus, before you decide on your app, just download and test it for free with a demo version.
Every app you download comes with its original site. The more informative the site is, the better option it may be. Yet, you need to be sure that all your particulars and coins are safe enough at the platform. Have a look at several reviews and determine the extent to which the site guarantees safety and privacy.
Fees on the platforms make you pay for the exchange. Thus, choosing a platform with lower fees may be more appealing. Since a trader may have many transactions within one day, for such traders the fees might be of the trivial amount. For example, the cost of one transaction of $5 might be the same as in the case of a transaction of $50,000. Small investors may not be as lucky as big ones. The other aspect of understanding fees is their type.
- Deposit fees: the amount charged for depositing fiat currencies. Such charges may come as fixed fees or a percentage of the deposit amount. These fees might be high when depositing via credit cards which aren’t allowed in the US-based exchanges.
- Withdrawal fees: the amount to be paid for withdrawing your coins, and for such operations, there’s a list of coins and their withdrawal fees on the platform’s site. This type of fee is one of the major factors in choosing your trading platforms.
- Trade fees: this type of charged amount is also known as trade commission. It’s a brokerage fee charged when buying or selling your assets.
- Exchange fees: an investment type fee when transferring funds between the same group. Shareholders are charged with such fee type, and thus, more related to investment.
For crypto traders, fees may play a more essential role if they plan to invest in more than one coin, which is advisable. Since the first time when cryptocurrency started its existence, there are more than hundreds of such coins. The problem is that investing in one coin may result in more losses if that particular crypto price falls. In such cases, your other coins may make up for your potential decrease in profits.
Is crypto trading safe?
The volatility of the market isn’t something new. Even in normal money exchange, you may have come across how currencies can shift upwards or downwards. Here comes the most crucial aspect of how safe trading digital money can be.
Since cryptocurrencies are no exception to the rule of changing, the risks should be admitted at the beginning of the journey. Crypto is risky and challenging, yet it’s not something impossible. Here are 4 critical cryptocurrency trading tips not to forget:
Be ready for the changes
The volatile market of cryptocurrency is excellent, given its dynamics. Swing in prices is happening all the time, even while you’re reading this, don’t forget to check your coin exchange rate. Therefore, always keep your app by your side and keep track of the changes.
Have various investments
Don’t keep all your coins in one cryptocurrency. Today’s hero is tomorrow’s mystery. So, try to diversify your funds in different coins rather than keeping them just in Bitcoin or Ethereum. Find out various options and get to know other popular crypto coins.
Know your ‘wallet’
Your digital wallet is what you need to get to store your coins. Be careful while choosing your exchange place for your digital money. You better read through reviews of the best wallets and find your favourite one.
Do your research on crypto trading
Your cautious approach to choosing your exchange can be a breaking point in your investment story. Not to turn it into a tragedy with the lines of ‘for never was a story of more woe than your investing,’ you better know what you do and choose. Prepare to grasp a lot of information so you can pick the best place for your money transactions.
Rules of crypto trading
While making your initial steps into crypto trading, pay close attention to:
- monitoring the fluctuations;
- situation with the main cryptocurrency (bitcoin);
- latest news in this market because anything can change in a moment;
- readiness to lose the money you invested;
- research to become a pro in trading and gaining profit (mistakes can be done when acting impulsively);
- experts' predictions instead of blindly trusting the given information;
- other people's stories and communication with already existing experienced crypto investors to learn their path and indicate potential threats for yourself;
- helpful platforms that can aid you find a mentor.
How do you get into crypto trading?
Crypto trading is about gaining and avoiding losses. The balance between those is the ultimate goal of any broker. Yet, being smart and ready for the changes may not always be enough to succeed. How to start then? Follow these tips:
Nothing personal but research
Before you plunge into an investment, storing, and exchanging coins, you should be sure about this. Even if you’re starting with $1, do it smartly. Spare some time to research to make further and decisive steps.
Your platform is your fortress
You ‘wage war’ of money, so do your best with your platform. Do what’s needed to stay tuned, safe, and happy with your platform. Now, thanks to this article, you know how to choose your fortress.
Find the safest and best wallet
Another essential step in getting ready to gain money is your prospective wallet. How and where you keep your digital money will assist you in deciding your efficiency in trading.
Find out about your possible tools
Technology is always your friend in crypto trading. Find out more about which cryptocurrency trading tools you can employ in the investment and exchange. Behind every successful coin broker, there’s always robust technology.
Thanks to blockchain technology, you get the most transparent transactions. Your wallet can be visible without details. This makes the process less troublesome. Also, don’t forget that the government doesn’t manipulate this crypto market.
With a reliable platform and a trustworthy wallet, all your transactions are safe. Thus, you don’t need to worry about your personal and financial data and your coins’ loss.
Money is great, but faster money is greater. This is a case with cryptocurrency trading, as every transaction is done fast.
Fees you pay at the platforms may vary. But what’s common among them is the lower costs than with fiat money. Investment with lower expenditures is an excellent start.
Risks of crypto trading
Given the volatility of the market and its trends, it’s hard to predict what will happen in the near future. Moreover, crypto trading isn’t fully protected from human-based flaws like operational flaws or hacking attempts. Risks are inevitable, so before you plunge into crypt trading, you better be cautious and well-informed. The simplest advice is not to invest more than you afford to lose.
Crypto trading is an opportunity to turn your investment into something bigger thanks to crypto coins. The exchange of coins may seem a bit complicated, yet with your scrutiny and use of needed cryptocurrency trading tools alongside the understanding dynamics, you may earn a lot more. The cryptocurrencies entail risks but not without underlying financial benefits. Time to face the challenging sides of coins and start your first steps in crypto trading.