If you are wondering what cryptocurrency trading relates to, one of the best ways to describe it is as the Forex (Foreign Exchange) of cryptocurrencies. Basically, it is a process where you trade different cryptocurrencies such as Bitcoin and other altcoins normally for USD and BTC values.
If you don’t want to or can’t mine Bitcoin or other cryptocurrencies, the best way to invest in cryptocurrencies is to do cryptocurrency trading. The truth is, this process doesn’t require any mining hardware but only your money and a virtual wallet to begin with.
There are many reasons why Bitcoin trading is better than Forex trading, with the growing price of Bitcoin being the first and the most important one. However, aside from it, trading Bitcoin is great because it is:
The first thing you need is an online wallet, which allows you to buy and store your cryptocurrencies like Bitcoin or Ethereum as well as protect them.
Now, most of the cryptocurrency exchanges offer free wallets as part of the deal once you sign up and invest money in Bitcoin trading. It goes without saying that you should be cautious with your wallet and always activate the two-factor authentication for enhanced safety. Also, most of the exchanges offer cryptocurrency trading that bases on Bitcoin, which is why Bitcoin should be the first cryptocurrency to consider buying.
If you decided to buy Bitcoin, you should definitely choose your exchange place wisely. There are a lot of cryptocurrency exchange markets out there, but you should be careful and see the rules.
For example, some crypto exchanges only allow you to exchange Bitcoin to Altcoin without the possibility of exchanging Altcoin to any other Altcoin. This means that you are limited to Bitcoin and not other alternative coins (altcoins) like Ethereum, Litecoin etc.
As soon as you open your account, you need to transfer an amount of Bitcoin from your wallet to your exchange account and start trading. Alternatively, you can deposit flat currencies such as USD and EUR but know that there are higher fees for this sort of trading.
In the end, crypto trading is definitely becoming a hot term in the dictionary of many traders – and is certainly a great way to make good money. The first reason for that is the growing value of crypto currencies. If we take Bitcoin for example, its value has grown by 650% only in 2017 (by far) and many other cryptocurrencies are following the same routine.
By following the expert crypto trading rules as well as following your instinct, you can eventually take advantage over the people who don’t – and make most of crypto trading. Also, you can detect which crypto coins are scams and which have a massive potential to skyrocket just like Bitcoin.
Remember – the key is to always stay informed and be careful where you invest – and never invest what you cannot afford to lose!
The Financial Products offered by the company include Contracts for Difference (‘CFDs’) and other complex financial products. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because it is possible to lose all of your invested capital. You should never invest money that you cannot afford to lose. Before trading in the complex financial products offered please ensure to understand the risks involved.