Understanding of Crypto Trading

Cryptocurrency trading, or more briefly crypto trading, is simply the exchange of cryptocurrencies. Just like in Forex, you can buy and sell one cryptocurrency for a fiat currency, like Bitcoin or Ripple for USD and Euro. Or you can trade one cryptocurrency for another, like Litecoin for Bitcoin and Ether.  

What You Should Know Before You Start Cryptocurrency Trading


The cryptocurrency market is quite volatile. You might be able to make a fortune in a moment and lose it in the next whether you trade Bitcoin, Ripple, Ether, Litecoin, or Dash. Keeping that in mind if you are a beginner or even an expert in crypto trading, it would be a good start to choose a company with a good reputation that offers trading on the most well-known coins like Bitcoin (BTC) and Ethereum (ETH). 

Additionally, it is always wise to stay updated with the current trends and news of the crypto market and do research on the market cap, history, and future of each cryptocurrency.

Mining or Trading Cryptocurrency?


Cryptocurrency mining is another way to get involved in crypto trading. It will require a large outgo of cash to buy the needed equipment an investment of time and resources like electricity for powering your computer, or you can invest a small amount of money and trade with an online broker.  

Bitcoin and Ether mining are among the most popular coins to mine. However, if you are not interested in getting involved with all the technicalities of mining, then trading may be a better choice.

Factors that Affect Crypto Trading Prices


Some of the factors that cause fluctuations in the crypto trading market include a software update, wallet improvements, platform applications and of course governmental regulations. 

If a cryptocurrency is updating its software to lower the transaction speed, for example, this could increase the value of that coin in the future. The same is true for wallets. 

Unlike fiat currency that can be stored in a bank, cryptocurrencies need to have a compatible wallet to be stored safely. If a cryptocurrency does not have a good wallet solution yet, it may mean that it is undervalued and future improvements in the wallet may increase the price. 

Some crypto platforms, like Ethereum, host other applications. If one of these platforms does very well, this could have a positive effect on the currency. 

Finally, government regulations can have a large effect on the value of a cryptocurrency. That is why all investors should keep aware of current trends in government regulations and avoid crypto trading in currencies that could get red flagged by government agencies.


Source link   Presented by GMOTrading

Swing trading made simple

Swing trading is one of the four major trading styles used by investors. It refers to investments with asset holding periods lasting from over...

What is the World Stock Market?

The world stock market is the multitude of markets and exchanges that exist worldwide, where the issuing and trading of equities or stocks of publicly...

British Pound and Australian Dollar

The GBPAUD currency pair can be considered one of the top trading pairs in the Forex market. The exchange rates of the pair are heavily influenced...


Understanding Crypto Market Cap

With 1855 Cryptocurrencies available and a total market cap of $ 212 Billion, the cryptocurrency market may be worth exploring for investors...

Futures Trading for Beginners

Futures trading can be difficult if investment strategies are not defined and applied properly. Some point to the fact that futures market is also referred...

Basics of the Technical Analysis

Technical analysis is a method used to forecast future financial price movements based on a careful study of past price movements. The method...


All You Need to Know about FTSE Futures

The FTSE is an acronym for the Financial Times and Stock Exchange index that represents the hundreds of top companies on the London Stock Exchange...

What You Should Know about FTSE 250

The FTSE 250 is an acronym for the Financial Times and Stock Exchange 250 index which represents the top FTSE 250 companies listed on the London...

What should you know about Dax 30?

The Deutscher AktienindeX or the DAX 30 represents 30 of the most liquid and large, blue chip companies in Germany. These companies are also listed...

  


Share: