In today’s age, cryptocurrency is gaining huge popularity. In the year 2017, cryptocurrency has first started with bitcoin. With a tremendous growth in the trading market, the popularity of cryptocurrency has immensely increased. If you are a beginner and interested about cypto trading, then this is the right place from where you can gather a lot of information.
In this crypto signal group, you will come to know about a step by step guide to this crypto trading. In fact, it can be a great option for the beginners as you don’t need to buy cryptocurrency wallet and you can easily get a feel for the market without any need to buy it right at the moment.
How to choose the right trading platform
There are certain factors on which you should emphasis to choose the right trading platform. Let’s have a look at them
- What currencies are available – Bitcoin to USD may be available in almost all platforms but other cryptocurrencies may not available in all platforms.
- Whether leverage is available or not: Leverage is something which lets you trade beyond your deposit amount and thereby multiply the gains. However, this is offered to those who prefer higher rewards and higher risks. In all platforms, you can find leverage for up to 20:1 cryptocurrency depending on your chosen platform and also the currency pair.
- What trading features are available: You must check out whether your platform has stop loss feature, hedging and other options which can provide more control over trading. Those who are experienced traders can definitely benefit a lot from these, while those who are just beginners might prefer to keep it as simple as it is possible.
- What is the minimum investment: what is the minimum investment you can make? Does it really work for you?
These are some important factors which you should take into consideration for choosing the right trading platform.
How this cryptocurrency trading works?
Market trading is something which is kept reserved for the financial bureaucrats. However, the growth of cryptocurrency is related to the growth of online currency exchange and this trading platform is something where anyone can easily take part. You only need to know how it works exactly.
What is forex marketing trading?
Forex market trading is the place where the buying and selling of currency takes place between the traders. To define this in simple terms, it can be said that you are betting on the varying price structure of different currencies.
To start trading in the forex market, you first need to open an account and then deposit into it. These funds are mainly place to buy and sell the orders against the currency. You can make a huge profit from selling or by closing an order at a higher price rate than the price you bought.
How you can make profit in the forex market?
In order to start trading in the forex market, you should make a deposit into your account first. When you place your bet correctly, the fund into your account will gradually increase. When you place the bet incorrectly, the fund will decease automatically. With the leverage option, you can magnify your profit and losses in the forex market.
For example, suppose you place US$ 1,000 trade on bitcoin without using the option of leverage. If the price increases by 10% compared to that of US dollar during the trading period of profit, then your profit level will gradually increase $100 by decreasing the trading fees. As you can see the share price movement of cryptocurrencies combined with leverage can bring substantial returns.
Cryptocurrency trading works exactly the same way but instead of buying and selling flat currencies such as US dollars, traders buy and sell a lot of cryptocurrencies such as Litecoin, Ethereum and bitcoin. For example, you should bet on the price difference between the US dollar and bitcoin. You can also bet on the changing or volatile values of two different crypto currencies.
If you think that bitcoin will increase its value, you may go a long way. The betting means that it will increase the value in relation to the US dollar. If you think that bitcoin will decrease its value, you may find it short instead. This sudden surge indicates that it will decrease the value in relation to the US dollar.
For this, you are not buying the cryptocurrency. Instead of it, you are placing an order in the trading market.
Who are the two types of traders?
There are two types of traders who work in the forex market trading. Let’s have a look at these two types of traders –
Two types of traders
There are mainly two types of traders available in the forex trading market – Long-term trading and short-term trading.
Those who are long-term traders buy and keep cryptocurrencies for a long period of time. They may hold cryptocurrency for weeks, months and even after years. Studying this trend allows the long-term traders to make an informed decision and avoid the short-term suffering.
If you think that the value of cryptocurrency will slowly increase over a long period of time and don’t want that the stress which causes due to short-term dip value. Therefore, this is said to be the best choice.
Those who are experienced market traders can seriously take the advantage of short-term trading. It involves buying and selling of cryptocurrencies over a time period of a day or a few hours. If you take the advantage of volatility characteristics of Cryptocuurencies, then this is the right method for you.
What are the advantages associated with cryptocurrencies trading
Cryptocurrency trading comes with a number of advantages which include –
- Fast exchanges and cheap fees
for each type of trading, the exchange platform you are using takes a very small amount commission for offering you the service. This is an obvious fact. Cryptocurrency trading is different from fiat currency and thus, the amount of fees also differ in this respect. The fees for transferring cryptocurrency are cheaper than bank transfer fees.
- Extreme volatility
this is another important advantage which traders can avail while performing with cryptocurrency trading. The forex trading marketers can experience a huge price movement. Although the risk may increase in this platform, you can relatively make a lot of profit from small investment.
Things you need to be careful about
While trading with cryptocurrencies, you need to be a bit careful otherwise you may indulge yourself in gambling and this may impose a great risk where you may even lose all your money. Trading is not just a game. Rather it is a platform where you can make real money and also at the same time, you may lose the money as well. Therefore, if you start trading with cryptocurrencies, make sure you do a proper research work and keep the following concepts in mind to avoid the pitfalls of this trading market.