A Simple Way To Trade Cryptocurrency
As people are becoming more and more aware about cryptocurrencies they are realizing that there are many other aspects that are involved in it that need to be understood in order to start investing in cryptocurrencies. One of the main aspects that are involved in cryptocurrency is that trading in it. This is done on the trading platforms. On these platforms, there is the sale and purchase of crypto-coins are done. There are many trading platforms that one can pick from as each cryptocurrency has its own exchange platform.
How to trade cryptocurrency
The first question that comes to mind is the best way to learn how to trade a cryptocurrency. There are actually a few steps which are involved in this as is an investment matter. The first thing that should be understood is how to exchange fiat to cryptocurrency. There are many exchange platforms in the market that will help you to connect to the cryptocurrency world. There are a number of things that should be looked out for while deciding for an exchange:
- One of the most important things that should be made sure of is that the exchange should be present in your country. There are exchanges which are present in one country but are not available in others hence see where the exchange exists.
- Another thing that needs to be seen is what the reputation of the exchange is. Meaning are people satisfied with it.
- The exchange rate is a crucial factor because they may vary from one exchange platform to another one. So proper research should be done.
The next step is to create an account on the platform that you want to trade on. The signing up process is fairly easy as normal details like your email address and phone number are asked. Once you have signed up then see what coin you wish to trade-in. it is also questioned upon on how much it costs to trade a certain cryptocurrency. Well, this depends on the exchange platform that you are choosing for trading. Each trading platform will have its rate. For example, the trading platform Coinbase charges a 4% fee to add money into its platform.
Best Cryptocurrency Trading Websites
Let us list down what are possibly the best trading websites that one can go for in cryptocurrencies. These trading websites will consist of different exchanges which will be probably having varying trading fees involved in them. They will be the ones which will be the best if you are trading for the first time in such a digital currency.
Binance: Considerably one of the most known crypto-exchange platform because it has been in the market for more than any other exchange. The interface that is involved in this exchange is very compatible with your needs as there are two options that one can choose from. One of them is the beginner mode in which it will help you to in each step of the processes and understanding various factors and the other one is the advanced version which will let the professional’s trade easily. The fee’s that is charged is about 0.1%.
KuCoin: this exchange has been in the market for quite some time and has gained popularity in the last few months. The customer support that is involved in this exchange is present 24 hours at your service so that you do not have any problems. There are many security provisions that this coin offers which will help in earning your trust. The trading fees that are involved in this exchange is also 0.1%.
Changelly: this is yet another cryptocurrency exchange trading platform which has been most sought out for. This trading platform is the easiest exchange platform that is available in the market. Unlike other exchanges, Changelly does not require you to fill out the KYC (Know Your Customer) as it is a time-consuming process. Instead, it will only require you to fill out your mail details instead. The fees that are charged in this platform is 0.5%. There are about 35 cryptocurrencies which are present for you to trade-in.
When you are looking through these exchanges and decide on a single on then see the different cryptocurrency exchange trade volumes of the cryptocurrencies. This is one way in which you can decide on see what trade cryptocurrency you want. This trade volume will help in examining how well the coin is performing in the market.
Cryptocurrency Trade Charts
As you might have noticed by now that when you see these trading platforms there are a number of charts which are involved for each cryptocurrency listed on that particular exchange. There are basically three types of charts which are present that need to be understood in order to make the trade process more efficient as well as effective.
The head and shoulders chart is the most used one as it is easy to understand. This is a normal chart which will help you to see how much rise and fall the coin went through in this year as well as the past years. The cup-and-handle chart is mostly used for trades who plan for a long term trading process. The candle chart is for the people who trade on a daily basis as it will show how current trends are affecting the cryptocurrency. So these are the charts that need to be understood in the cryptocurrency trade markets.
It is often time seen that when a person analyses all of these charts and makes a strategic decision on the result then that person would be doing cryptocurrency quantitative trading. This is a decision which is based on calculations rather than personal judgments. This is an area in trading that is very comprehensive and usually takes a long time to adjust to but it will bring more benefits than any other trading strategy which is present.
Cryptocurrency Trading v/s Investing
Though both of these terms may seem like they hold different meanings. An investor will invest their money into the market for long-term benefits. While trading usually occurs more on a daily basis so that the traders can claim benefits form the rise in the market or the fall of the market. An investment in cryptocurrencies may not be a good idea but instead, when you do invest in it there should be constant trading involved. This should be done because the price of the coins may fall or rise quickly due to various trends that occur in the market. Let’s take an example of probably the most known currency which is Bitcoin. The prices of Bitcoin were not that high because it had just entered into the market. But towards the end of 2017, the prices went through the roof and if you were conscious about this information then you would have sold your coins. The prices almost touched $20,000 at that time and trade, by doing proper research and analysis would have sold their coins then. An investor would think that they may rise more in the future and would have been left with a lower price rate for the coin. It can be understood from this that price fluctuations occur more than often in cryptocurrencies and that they depend on the trends that occur in the economy. Each cryptocurrency is attached to an asset and if the trend of that asset starts to increase then the price of the coin would also increase quickly.
From all of this, it is to be noted that though there are many cryptocurrencies available in the market you should choose the one which is best according to your preference. There is no best cryptocurrency to trade according to me because all there is no telling which cryptocurrency may rise in the future and which may fall. There are new cryptocurrencies which are being introduced into the market which may take over the market by a storm thus increasing its price rate in the trading platforms. There are other ways to earn coins that do not involve trading. This way is known as mining in which the whole transaction process of buying and selling of coins is done. This is a long process to understand but it basically will help you to earn coins of the cryptocurrency that you are planning to mine. The mining process is one of the key essential aspects of trading to be successful to be conducted because without miners the transactions would not be complete.
It can be concluded that trading cryptocurrency requires a lot of research to be done because it needs to be seen on how the coin will perform in the future. Even though the best cryptocurrency to trade in 2019 maybe Bitcoin but there are other alternate coins which will be seeing more of a rise and even may rise higher than this specific one. Trading is a process that cannot be done just like that but takes a lot of time and understanding for the whole process to understand fully.