Why you should first learn about cryptocurrency trading before investing
I have many friends interested in cryptocurrency trading in bitcoins and altcoins on a cryptocurrency trading platform. Their interest in trading cryptocurrency is mostly as a trading or investment.
To that point, it is very essential that you know at least the basics on how to invest in cryptocurrency from your cryptocurrency broker before you take just opening a wallet and start “trading” blindly.
Introduction in trading cryptocurrency
Before you buy cryptocurrency and start trading on a cryptocurrency exchange, you must keep in mind that all coins are not created equally or for the same purpose. In fact, unless you are a currency or precious metals investor or trader, you might be even further behind in your understanding about cryptocurrency and how cryptocurrency market functions.
Instead of just advertising that they are the best cryptocurrency trading platform, many cryptocurrency trading sites have resources to teach you that each cryptocurrency is created for a different reason and/or has a different function or implementation.
If you try to read your first daily cryptocurrency article with no background, it is easy to get tripped up on various types of cryptocurrency market trading, finding the best trading platform for cryptocurrency, security tokens, forks, stable coins, digital assets, etc.
In a normal scenario; a bank being a financial institution has the authority to accept deposits from public and give loans. Banks will provide wealth management, currency exchanges services and offer credit facilities to its customer base.
Banks have played a critical role in the stability of the economy, thus are regulated in most countries around the world, unlike cryptocurrency exchange. Some of the growing concerns regarding a bank are its capital adequacy requirements. These are based on the capital mandates set by the Basel Committee on Banking Supervision.
On the other hand, a cryptocurrency exchange platform is concerned with managing withdrawals and receiving deposits as well as supplying credit to traders and institutional investors. Traders will use their funds to buy cryptocurrency online, whereas customers will use their cryptocurrency trading platforms for basic checking and saving their funds.
Cryptocurrency trading platform for successful exchanges
Cryptocurrency is a great asset to invest in. Most people will search online on how to start trading cryptocurrency, but they get to lose money just because they lack basic knowledge.
They only search and read about how to buy cryptocurrency on cryptocurrency market but don’t know when to invest and when not to. I think everyone going into Bitcoin – the most famous cryptocurrency for mining, trading and investment objective should undergo some training.
It is important to learn when to buy and when not to. Learn how to buy cryptocurrency. Learn how to protect and grow your investment with good resources on the best way to buy cryptocurrency. Once you have the knowledge and tools, you may luckily become a cryptocurrency millionaire.
All cryptocurrency exchanges have a distinctive interface. Most commonly you will find that their access is pretty complicated and you will get confused all the time. If there is a smart trading platform, there will be an interface allowing to manage your funds, and exchanges easily.
Learn the basics of trading cryptocurrency
Whenever, you chose an exchange, bear in your mind certain requirement. A chosen exchange must support specific cryptocurrencies, or have extra features like over the counter deals or margin trading.
Once you choose an exchange that fits your requirements, you should also check for secondary aspects as well. For me, the security of your wallets is by far one of the most critical factors. If your exchange guarantees the security of your wallet, you are stress-free that your funds might be stolen. Exchange insecurity leaves all remaining benefits it provides worthless.
The second thing to look for is liquidity: exchanges with higher trading volume are liquid specific exchanges. You will be able to complete transactions much faster on liquid exchanges, with ease and without having to suffer from price volatility.
Few other significant factors include technology, legal aspects, and transparency of exchange. Being a user, you will be giving importance to fees charges and user experience to pick your best platform for trading purposes.
I will share a few more basics of cryptocurrency for most of you who have never thought about investing here. For all friends new to cryptocurrency, after getting started, the next thing is where to start investing?
I will warn you, you can easily turn your $10,000 into $10, so take investment advice only from experts or read news and trends. Online resources are too much to go through for a new person.
The very first place to start is Bitcoin-trading symbol BTC. Bitcoin is the “dollar” of all cryptocurrencies. All other currencies have been compared with it. As it rises and falls, so does the entire market of other cryptocurrencies. It’s the largest by the value of all.
Bitcoin was almost valued $20,000 in December 2017. It went down pretty much in 2018 – a significant decline. However, it did better than almost all the other currencies.
But, there’s good news. For a few months in a row, Bitcoin has been growing. The market is hopeful on a steady increase (a bull market). There are some confusing things to a new person. For instance, there is more than one Bitcoin. As a beginner, ignore them for now. Many people confuse bitcoin with Blockchain technology, so let me explain it here as well.
Blockchain technology is the rave of the moment and getting continuous attention. Blockchain is a decentralized ledger technology that is publicly available and certifiable. It is the structural basis of cryptocurrencies, which are digital assets that can be traded or exchanged to other digital assets or fiat currencies such as USD on platforms called cryptocurrency exchanges. Despite the fact that the number of existing exchanges is increasing day by day, the requirements of users are yet to be fulfilled. In fact, most of these platforms are built without considering their consumers into the equation as they are investing their money.