• About
  • FAQ
  • Landing Page
  • Buy JNews
Newsletter
Crypto News
Advertisement
  • Home
    • Home – Layout 1
    • Home – Layout 2
    • Home – Layout 3
  • Bitcoin
  • Ethereum
  • Regulation
  • Market
  • Blockchain
  • Business
  • Guide
  • Contact Us
No Result
View All Result
  • Home
    • Home – Layout 1
    • Home – Layout 2
    • Home – Layout 3
  • Bitcoin
  • Ethereum
  • Regulation
  • Market
  • Blockchain
  • Business
  • Guide
  • Contact Us
No Result
View All Result
Crypto News
No Result
View All Result

How You Can Effectively Trade Cryptocurrency

by
December 4, 2020
in Uncategorized
0
How You Can Effectively Trade Cryptocurrency
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

The emerging cryptocurrency market has generated increasing interest over the last few years, among investors of all varieties and backgrounds. Unlike traditional currencies, cryptocurrency trading is based on speculation of price fluctuations, instead of actually owning and selling an asset. The value of an investment is determined by the asset’s movement between trade entry and exit. Cryptocurrencies are unique in ways that distinguish them from other traditional commodities and trading markets. They’re virtual or digital commodities, which makes them intangible, and they’re unregulated and decentralized, so they’re not managed, monitored or governed by a central authority, such as a government or internationally recognized bank. This makes them intrinsically lucrative but also volatile.

These sorts of technologically advanced financial investment opportunities certainly carry their own appeal and the potential for unlimited profitability. But in the finance world, high returns are often proportionate to high risks. To minimize the risks and increase your chances of success, it’s essential to develop an adequate understanding of the theories and mechanisms behind these digital transactions. This will help you to improve your crypto trading strategy based on knowledge, instead of just hopes and prayers.

Related articles

Burned Banksy NFT Sale Captures Close to $400K, Critics Claim Buyers Are ‘Morons’

Burned Banksy NFT Sale Captures Close to $400K, Critics Claim Buyers Are ‘Morons’

March 8, 2021
Bitcoin price breakout imminent: Why BTC bulls and bears are battling at $52K

Bitcoin price breakout imminent: Why BTC bulls and bears are battling at $52K

March 8, 2021

In the world of cryptocurrency, there are some industry-specific terms that you should become well familiarized with to understand how these markets operate. Here are some of the fundamentals:

Blockchain

Blockchain is the digital database underlying cryptocurrencies. It’s a digital ledger of recorded data, whereby all records are encrypted individually. Transactions are recorded in blocks, and blocks are added to the chain as transactions take place. This process is known as cryptocurrency mining.

Blockchain technology and its decentralized networks are built and sustained by mass collaboration on a global scale. They’re based on peer-to-peer exchanges and layers of trust, removing the need for a centralized authority to monitor transactions. This makes blockchain a trading anomaly that fascinates many investors and economists.

Types Of Cryptocurrencies

There are more than 1,600 cryptocurrencies currently being traded publicly, with a combined market value of more than $289 billion. The value of Bitcoins alone was estimated at $210 billion. And while there is a limit on the number of Bitcoins available for purchase, the appreciation of their value is seemingly limitless. This naturally heightens demand and speculative interest on trade and investment value, as it would with any tradable commodity.

Tokens

There are value tokens, security tokens and utility tokens. Value tokens like Bitcoins are created in an Initial Coin Offering (ICO) and represent value, but aren’t actually of monetary value. The same is essentially true for paper currency. Tokens are assigned their value by data encryptions used in transactions.

Although its name is misleading, Bitcoin does in fact belong in the token category, and is the most popular and widely traded cryptocurrency on the market. It was also the first crypto asset ever created. In general, people are more familiar with this digital currency than with any of the others, so the demand for Bitcoin is quite high. There are a number of ways to earn or win Bitcoin, such as by leveraging investment trading strategies or exchanging digital services for cryptocurrency.

Altcoins

An abbreviation for Alternative Cryptocurrency Coins, these are any coins besides Bitcoins. Although they’re all created on the same theory and foundation as Bitcoin, they’re all unique in the purposes and applications they serve, and are supported by different systems and protocols. The most well-known altcoins on the market are the following:

  • Peercoin
  • Litecoin
  • Namecoin
  • Ethereum
  • Ripple
  • Omni
  • Bitcoin Cash
  • Libra
  • Monero (XMR)
  • Binance Coin (BNB)
  • NEO
  • Cardano
  • IOTA

Two Ways Of Investing In Cryptocurrencies

Once you feel confident about your decision to invest in a cryptocurrency of your choosing, there are a couple ways to approach your investment strategy: you can trade cryptocurrency or purchase it, and either method comes with its own advantages and disadvantages.

Trading With CFDs

A CFD or Contract for Differences is a contractual agreement to exchange the difference in price of a currency, from the time the transaction opens to when it closes. This is based on price speculation rather than actual ownership of the currency. In this case, a Bitcoin price analysis would greatly benefit your trade strategy. You’ll have to decide whether your strategy and position will be short or long. A solid risk management strategy should be built into any longer-term trade approach, so that there are limiting constraints to all losses.

Day trading is an example of how you can profit from a short-term strategy. Bitcoin is traded 24/7 and is the most liquid of all cryptocurrencies, which means it can undergo quicker transactions and monetary conversions within a day—and with marginal impact on the market price. There are also many more trading opportunities in a 24-hour window, in larger loads with much less overhead. With day trading, consider optimizing your strategy in the following ways:

  • Diversify your trade currencies
  • Track and monitor trading times and trends
  • Stay vigilant and current on cryptocurrency news
  • Minimize trading costs by using a low-rate exchange
  • Utilize technical analysis tools and metrics

Purchasing Cryptocurrency Through An Exchange:

In this case, you’re taking ownership of the digital currency, and ideally the asset you purchase will appreciate in value. You’ll need a digital wallet to store your currency and an account through which to exchange it. Digital wallets need to be secure and protected from external cyber threats such as hackers.

Ways To Buy Or Invest In Cryptocurrency

If you’re wondering how to acquire cryptocurrency in the first place, there are a few options, such as exchange platforms and trade brokers. Bitcoin, for example, can be purchased from exchanges that’ll charge a percentage of the purchasing price. Each one charges different trade fees based on a tiered structure or schedule. The most well-known and widely used cryptocurrency exchanges are:

  • Coinbase
  • Binance
  • Gemini
  • Coinmama

If you choose to go down a more traditional route with a stockbroker, here a few mainstream cryptocurrency trade brokers:

  • Robinhood
  • TradeStation
  • eToro

There are other ways to purchase or invest in Bitcoin or Altcoins, such as Bitcoin ATMs, peer-to-peer transactions, and digital currency asset managers.

Conclusion

Before you embark on your cryptocurrency adventure, you should first take steps to educate yourself on the risks involved before jumping into high-level trading. Explore your options for trading or exchanging currencies, and the necessary steps for storage and investment management. Even if you’ve got significant experience in financial trading and investment strategies, cryptocurrency operates very differently from any other market in terms of volatility, liquidity and predictability of trends. So, it’s important to first get familiarized with this unique market. Understanding the nature of cryptocurrency will help to optimize your experience, and help set you up for potential success.

Share76Tweet47

Related Posts

Burned Banksy NFT Sale Captures Close to $400K, Critics Claim Buyers Are ‘Morons’

Burned Banksy NFT Sale Captures Close to $400K, Critics Claim Buyers Are ‘Morons’

by
March 8, 2021
0

On March 3, a group of anonymous art enthusiasts decided to burn an original Banksy screenprint worth roughly £70,000 or...

Bitcoin price breakout imminent: Why BTC bulls and bears are battling at $52K

Bitcoin price breakout imminent: Why BTC bulls and bears are battling at $52K

by
March 8, 2021
0

Bitcoin must overcome a big hurdle at $52,000 for any chance to break new highs in the short term. Bitcoin's...

40% of Goldman Sachs’ clients already have exposure to crypto, survey shows

by
March 8, 2021
0

American investment bank Goldman Sachs confirms its crypto desk plans and reports that 40% of its surveyed clients already have...

NYDIG raises $200M from strategic partners as total Bitcoin custody tops $1B

by
March 8, 2021
0

NYDIG and its strategic partners will work together on Bitcoin-related initiatives following a $200 million funding round. New York Digital...

Burned Banksy NFT Sells For $400,000

by
March 8, 2021
0

A Banksy NFT minted by burning the original artwork has sold for four times the price of the original print....

Load More
  • Trending
  • Comments
  • Latest
Grayscale CEO outlines 6 themes that will shape crypto market in 2021

Grayscale CEO outlines 6 themes that will shape crypto market in 2021

January 20, 2021
GrayScale Reopens ETHE Buying

GrayScale Reopens ETHE Buying

February 1, 2021
Grayscale Investments Buys more ETH as Ethereum Price Shoots to New All-Time High of over $1550

Grayscale Investments Buys more ETH as Ethereum Price Shoots to New All-Time High of over $1550

February 3, 2021
Grayscale’s Crypto Assets Under Management Soar Past $30 Billion — ‘Institutions Are Here’

Grayscale’s Crypto Assets Under Management Soar Past $30 Billion — ‘Institutions Are Here’

February 6, 2021
Burned Banksy NFT Sale Captures Close to $400K, Critics Claim Buyers Are ‘Morons’

Burned Banksy NFT Sale Captures Close to $400K, Critics Claim Buyers Are ‘Morons’

0

China Is Reportedly Moving To Clamp Down On Bitcoin Miners

0

Inside the Chinese Bitcoin Mine That’s Grossing $1.5M a Month

0

All You Need to Know About This Whole SegWit vs. SegWit2x Thing

0
Burned Banksy NFT Sale Captures Close to $400K, Critics Claim Buyers Are ‘Morons’

Burned Banksy NFT Sale Captures Close to $400K, Critics Claim Buyers Are ‘Morons’

March 8, 2021
Bitcoin price breakout imminent: Why BTC bulls and bears are battling at $52K

Bitcoin price breakout imminent: Why BTC bulls and bears are battling at $52K

March 8, 2021

40% of Goldman Sachs’ clients already have exposure to crypto, survey shows

March 8, 2021

NYDIG raises $200M from strategic partners as total Bitcoin custody tops $1B

March 8, 2021
Crypto News

We bring you the best Premium WordPress Themes that perfect for news, magazine, personal blog, etc. Check our landing page for details.

Categories tes

  • Aave (AAVE)
  • Abra
  • altcoin
  • Altcoin News
  • altcoins
  • Altseason
  • Basic Attention Token (BAT)
  • Binance
  • Binance (BNB) News
  • Binance Coin (BNB)
  • Binance Ecosystem
  • Binance Smart Chain
  • Binance Smart Chain (BSC)
  • bitcoin
  • Bitcoin
  • Bitcoin (BTC) Adoption
  • Bitcoin (BTC) General News
  • Bitcoin (BTC) News
  • Bitcoin (BTC) Predictions
  • Bitcoin Cash (BCH)
  • Bitcoin Cash (BCH) General News
  • Bitcoin dominance
  • Bitcoin Futures
  • Bitcoin Miners
  • bitcoin network
  • Bitcoin Options
  • Bitcoin price
  • Bitcoin SV (BSV)
  • Bitfinex
  • BitGo
  • Bitstamp
  • Bittrex
  • Blockchain
  • Blockchain News
  • bloomberg
  • Brad Garlinghouse
  • Business
  • Cameron Winklevoss
  • Cardano (ADA)
  • Cardano Upgrade
  • ChainLink
  • ChainLink (LINK)
  • Chainlink (LINK) News
  • Chainlink Community
  • Chainlink Price Prediction
  • Changpeng Zhao
  • charlie lee
  • CME Ethereum Futures
  • CME Group
  • coinbase
  • Coinmarketcap
  • Consensys
  • Craig Wright
  • Crypto Exchanges
  • cryptocurrency
  • Dash (DASH)
  • DeFi
  • DeFi Pulse
  • Deribit
  • Dogecoin (DOGE)
  • Electric Coin Company
  • Elon Musk
  • ETH 2.0
  • ETH2.0
  • Ethereum
  • Ethereum (ETH)
  • Ethereum (ETH) News
  • Ethereum 2.0
  • Ethereum Classic (ETC)
  • Ethereum Fees
  • Ethereum Futures
  • Ethereum Miners
  • Ethereum Network
  • ethereum price
  • Ethereum price analysis
  • Ethereum Staking
  • Ethereum Upgrade
  • Ethereum Upgrades
  • Flare Networks
  • Flare Networks Snapshot
  • Gemini
  • google
  • Grayscale
  • Grayscale Bitcoin Trust (GBTC)
  • Grayscale Ethereum Trust (ETHE)
  • Grayscale Investments
  • Guide
  • Guides
  • Huobi
  • Institutional Investors
  • jack dorsey
  • Jay Z
  • justin sun
  • JustSwap
  • LINK Marines
  • Litecoin
  • Litecoin (LTC)
  • Litecoin (LTC) News
  • Litecoin Development
  • litecoin foundation
  • Litecoin MimbleWimble
  • Market
  • Michael Saylor
  • MicroStrategy
  • MimbleWimble
  • Mining
  • Monero (XMR)
  • News
  • NFT
  • NFTs
  • Non-Fungible Tokens
  • OKECoin
  • Other
  • Pantera Capital
  • Polkadot (DOT)
  • Polkadot Price Analysis
  • Poloniex
  • Prices
  • Regulation
  • ripple
  • Ripple
  • Scams and Hacks
  • sec
  • Securities and Exchange Commission
  • Spark Token (FLR)
  • Spark Token Airdrop
  • Spark Tokens (FLR)
  • Square
  • SushiSwap (SUSHI)
  • Tesla
  • Tether (USDT)
  • tether bitfinex lawsuit
  • Tron (TRX)
  • TRON (TRX) News
  • Tron Foundation
  • Twitter
  • Tyler Winklevoss
  • Uniswap
  • UniSwap (UNI)
  • Wallets and Exchanges
  • WallStreetBets
  • Weiss Ratings
  • Wrapped Bitcoin (WBTC)
  • XRP
  • XRP News
  • XRP Price Prediction
  • Yearn Finance (YFI)
  • Zcash (ZEC)
  • ZCash Halving
  • Zeus Capital
  • Zilliqa (ZIL)
  • Zilliqa (ZIL) News
  • Zilliqa Staking

Tags

Altcoin Bitcoin drops Bitcoin Wallet Cointelegraph Cryptocurrency ICO Investment Lending Market Stories Mining Bitcoin

Newsletter

[mc4wp_form]

  • About
  • FAQ
  • Support Forum
  • Landing Page
  • Buy JNews
  • Contact Us

© 2017 JNews - Crafted with love by Jegtheme.

No Result
View All Result
  • Contact Us
  • Homepages
  • Business
  • Guide

© 2018 JNews by Jegtheme.