By now, you must have heard of Bitcoin, the digital cryptocurrency that is turning worldwide trading upside down and has now become the single most valuable commodity in the world, it went more than 10K sometime in the last year.
Below lines are everything you need to know before you start trading Bitcoin, Ethereum or any other Cryptocurrency.
The value of cryptocurrencies is increasing, In 2017 Bitcoin (BTC) grew from just under US$1,000/BTC to over US$10,000/BTC. With such growth comes an explosion in market trading, which in turn helps the currency keep growing.
It can be a good choice for cryptocurrency beginners because you don’t need your own cryptocurrency wallet, and you can get a feel for the market movements without needing to buy it outright.
Start Trading Leading Cryptocurrencies
For beginners Cryptocurrencies are a type of digital coin, designed to be transferred between people in virtual transactions.
Cryptocurrencies exist only as data and not as physical objects, which means that you cannot actually hold a Bitcoin in your hand or keep Ethereum in your safe. Owning a Bitcoin means you have the collective agreement of each and every computer on the Bitcoin network that it is currently owned by you & more importantly that it was legitimately created by a miner.
Crypto trading, or cryptocurrency trading, is simply the exchange of cryptocurrencies. Like in Forex, you can also buy and sell a cryptocurrency for another, like Bitcoin or altcoin for USD and Euro. This is one way of getting involved in the world of cryptocurrencies without having to mine it.
Market Analysis is primary before starting any investment & ArbitragePro helps you with it.
ArbitragePro – This project is designed to help earn money, as they have developed an arbitration table that displays in real time the difference in the rates of crypto-currencies on various exchanges. Their service provides the prices of the same coins on various exchanges, for purchase on one exchange, at a low price, transfer to another and sale at a higher price. The average profit margin for such an operation is 2-5%, In a month it is possible to earn 50-200% (depends on the volume of trading and trading strategy).
Advantages of ArbitragePro:
– Processing of data from 10 exchanges (1200 Crypto currency)
– Display of crypto currency only with an open purse
– Display of daily volumes for each crypto currency
– Ability to adjust the daily trading volume
– Ability to sort and filter data
– List of profitable translations only for fast crypto currency
Cryptocurrency trading how it works?
Market trading might sound like something reserved for the financial bigwigs, but the growth of Cryptocurrency is accompanied by the growth of online currency exchanges and trading platforms where anyone can take part in market speculation & You just need to know how it works.
Things to be done before investing?
Before investing into cryptocurrencies and Initial Coin Offerings. the following pointers need to be considered:
- INVEST ONLY WHAT YOU CAN AFFORD TO LOSE — Set long term and short term goals & understand your risk.
- Build your own Crypto portfolio — spread your investment across 5 – 20 coins,don’t put all of your eggs in one basket.
- MARKET RESEARCH IS A MUST — Join blockchain communities/articles and ask questions (Reddit, CoinTelegraph, Coindesk, etc.)
- Do not trust media and headlines (Fear. Uncertainty.Doubt. & Fear Of Missing Out) — Media is uneducated in the space and as you’ve seen has caused people to panic. Do not trust random links, unfamiliar emails, and social accounts on any platforms — There are several scams.
- Protect your accounts, back-up all of your private keys, and get a hardware/cold storage wallet like Trezor or a USB. (I recommend a cold storage wallet). Remember why you got into crypto in the first place. For Privacy invest in Monero, its an all-in-one solution for all privacy enthusiasts, and as such, it holds tremendous potential for great success in the crypto world.
- LASTLY BE PATIENT — The end result will be rewarding. We are part of a movement that will change history forever. The market is emotional — If you truly believe in the projects you invested in — stick to your gut.
How do i start with Crypto trading?
Step 1: Set up a Wallet
Ledger is one of the best hardware wallet where in you can store your cryptos safely, below link with best offer listed.
Some of the online wallets are listed below.
Cardbit – This is a cryptocurrenсy wallet that allows purchasing Bitcoins by Debit/Credit Card, Sending Bitcoins to any Card via OCT and provides API for merchants. Benefits listed below.
- Order Your Prepaid Card and Load it with funds instantly. Use it wherever MasterCard is accepted.
- 3-D Secure transaction confirmation to add another layer of Internet environment security.
- PCI DSS compliant security standard platform in line with the latest set of requirements by PCI DSS v3.2 standard.
- 2-step verification process for increased user security.
Cryptopay is a wallet and payment platform where merchants and consumers can make transactions with each other while also being backed by the new bitcoin payment protocol.
Cryptopay users can:
- Receive, store, exchange, and send BTC, ETH, LTC and XRP.
- Buy and withdraw cryptocurrencies to your personal SEPA bank account.
- Buy BTC, ETH, LTC and XRP with a bank card.
- Order a plastic or virtual prepaid card (will be available soon).
- Open a corporate account and accept bitcoin payments from your customers.
Step 2: Buy Ethereum (ETH), Litecoin (LTC), or Bitcoin (BTC)
You cannot buy most cryptocurrencies with fiat (USD, CAD, EUR dollars etc.) You have purchase crypto like ETH, LTC, and BTC, but I use ETH for all of my trading because the transactions are faster and the fees are lower comparing to BTC
But some exchanges listed below are accepting fiat currencies to buy crypto coins.
Step 3: Sign up on trusted exchanges
Paybis offers wide range of payment methods to buy sell or exchange almost any digital or cryptocurrency. Our goal is to provide our customers with the state-of-the art secure trade platform with 24/7 live support. Also you can buy Bitcoins on our website within 10 minutes using Credit card or Debit card. Just sign up, pick the best payment method for you and proceed
365 cash is one of the most popular Bitcoin exchanges out there, boasting over 25,000 customers and exchanging both bitcoin and Ethereum to verified users. It is a solid platform to exchange your bitcoin or Ethereum with a credit card. 365 cash stands out as one of the fastest and easiest ways to exchange Bitcoin or Ethereum.
Step 5: Transfer your Ethereum (ETH) or BTC
To transfer your ETH from a platform to another exchange or to your Wallet you just need to get your wallet address. Each platform and exchange will have a unique wallet. Think of it as transferring funds from one bank to another. You can also invest in physical wallet.
Below are the simple steps to think of before taking the plunge.
Firstly Decide whether you want to buy or trade
You can decide to own units of cryptocurrency, or to trade on the price of cryptocurrency. By trading, you can speculate on the price without ever taking ownership, using derivatives trading instruments called cryptocurrency CFDs.
With a unit of cryptocurrency, you have to pay in full for the price of the asset. With trading, you only have to put up a small proportion of your total position size. This allows you to take a leveraged position on the price, gaining a greater exposure than might otherwise be available with your investment amount. This approach can also be cheaper – investors don’t have deposit or withdrawal fees to access the currency, for example.
trading is gaining in popularity recently below are some of the trading platforms which can be considered.
FXPRIMUS is one of the most secure online trading environments available anywhere in the forex industry. Our extra measures in safety have positioned us as the front-runner in responsible trading, and we are now setting new standards in safety amongst our counterparts in the FX industry.
TradeFred is a global online Forex and CFD trading platform. Our expert combination of finance and customer support knowhow ensures we can provide an investment experience that is designed to suit your individual investment style. We are committed to maintaining our position as a trusted name in the industry, thanks to our ethical and client-orientated ethos
You can also borrow bitcoins for investing & trading.
LendaBit is a top-notch online lending platform helping investors to maximize their return via reliable, blockchain secured investment tool while crypto holders will get access to virtually unlimited sources of cash keeping their assets for future growth.
LendaBit provides a meeting place for investors and borrowers where they can decide by themselves on the amount, the period, and the rate at which they invest or borrow.
Main features:
- An online meeting place for investors and borrowers
- Loans secured by cryptocurrency
- Lending on a peer-to-peer basis
- Great customer experience
There are a number of tax advantages to trading over investing. You don’t have to pay capital gains on the profits of trading cryptocurrencies, whereas you do if you profit from buying and selling cryptocurrency direct.
On the other hand, the trading approach can magnify losses if you get your strategy wrong.
Set up your account
To buy cryptocurrency, you need to buy and sell via an exchange. This means you need to create an exchange account and store the cryptocurrency in your digital ‘wallet’.
If you simply want to trade cryptocurrency you just need a brokerage account, rather than accessing the underlying exchange directly. The broker will be exposed to the underlying market on your behalf. This is usually quicker and easier to set up.
Decide which currencies you want to buy and sell
In reality, you won’t be able to trade all 1,500 cryptocurrencies. However, you should be able to trade all the major currencies – including bitcoin, bitcoin cash, Ethereum, Ripple XRP and Litecoin – and new currencies are being added all the time. With so many around, it can be best to choose those that you know something about, and become an expert in their price movements, rather than taking a broad-brush approach.
Also learn the basics of trading by attending free webinars.
Decide on your trading strategy
You need to make sure you know and understand your market. The pricing of cryptocurrencies depends on a whole host of factors. In the past 12 months prices have been influenced by concerns over government regulation, media coverage of the sector and the fortunes of the US Dollar – as well as statements from influential business people or government ministers. The more people become involved in cryptocurrencies, the more influential these different factors will become.
Apply your strategy by placing trades
Having settled on a trading strategy, you will need to define your ‘close’ conditions – i.e. the point that you will exit a trade. This can be an important discipline. Cryptocurrencies are volatile and running large open positions is risky. Once a position has reached your target, or you have hit your maximum loss, you will need to close out your position. These filters can be put in place to happen automatically. Starting small or testing your knowledge with a demo/practice account can help you get a feel for how these markets work and what influences them.
Also you can do social trading using the list of traders already available with trade fred.
Finally Crypto Trading is same as stock trading and has all the risks of the stock markets, so as they say ” INVEST ONLY WHAT YOU CAN AFFORD TO LOSE”
