Cryptocurrencies Trading — How to Begin, How to Survive?
- What Is Cryptocurrency and Crypto Trading?
- Why Trade Cryptocurrency with Exness
- Cryptocurrency Markets and How They Work?
How often have you asked yourself a question like, “should I invest in crypto?” We’re sure you did it a lot of times. What is crypto trading? Even the most experienced traders frequently have no exact answer. How to buy and sell cryptocurrency? Read on in order to grab the most efficient solutions to all of these questions. Believe, you’ll never regret joining the most reliable and legit platform!
What Is Cryptocurrency and Crypto Trading?
A cryptocurrency is a digital unit of calculation that is created by decrypting cryptographic codes. Simply put, a cryptocurrency is just a mathematical code that carries information about a particular coin, a unit of measurement of all cryptocurrencies. The coin exists only in cyberspace and operates through blockchain technology. Unlike ordinary (the so-called fiat) money—US dollars, euros, etc.—cryptocurrency possesses no physical form.
The term CFD crypto trading refers to market speculation with assets supplied to a trader by a third party.
In ordinary markets, such funds are provided by investment brokers. In essence, by providing leverage, margin trading allows the trader to make more profit from trading.
Thus, margin makes trading more productive and platforms with low volatility more popular. Margin trading is used in the stock, commodity, and cryptocurrency markets.
As in any situation with the provision of credit services, before trading, the trader must record a certain amount of finance, which guarantees debt payment. The funds allocated for this purpose are called margin.
Is Trading Cryptocurrency Illegal?
Trading a cryptocurrency or cryptocurrency trading is as legal as trading any fiat currency. As a rule, the governments do not limit the residents’ abilities to use a cryptocurrency as an asset to trade. It means that every person is eligible to be a crypto trader.
Nonetheless, to keep it even more legal, it’s necessary to declare the income you got from a crypto trading platform in the IRS and pay the taxes prescribed by the current legislation of your country.
Crypto CFD Trading
In general, trading crypto CFDs in Forex and through a crypto-exchange has a lot in common, right up to the standard MT4. However, there are several significant differences that you should be aware of.
There is no need to start a wallet to store currency and study other specialized information. Indeed, trading through a forex broker frees you from having to work through a lot of technical literature. All you need is the ability to analyze charts acquired on Forex currency pairs.
A single trading platform allows you to trade all assets at once, both forex and crypto. Exchanges, in turn, provide the ability to trade only cryptocurrencies.
The presence of leverage allows you to reduce the start-up capital. When you trade cryptocurrencies with Forex brokers, you get the same leverage as you would with regular Forex trading. For example, you can buy 1 bitcoin with only a small fraction of its value on hand.
It is much safer to trade cryptocurrencies through proven brokers for years than to trade through crypto exchanges.
As a beginner, you deposit in US dollars, for example, to buy bitcoin, which will later serve as the base currency for altcoin trading.
If you are happy with trading cryptocurrencies, you can follow one exchange, which also allows you to buy Litecoin (LTC) or Ethereum (ETH), which are considered additional base currencies along with the known Bitcoin (BTC).
In addition, CFDs can be an attractive alternative to trading for a much wider audience of prospective traders. When choosing a CFD, you get almost the same opportunities as with regular trading, but with some additional benefits:
- Trade only the price difference without having to buy the underlying asset.
- Leverage trading provided by a broker, which significantly expands your investment opportunities.
- Opportunity to profit from both rising and falling markets.
Today, the highest CFD trading platforms offer you the opportunity to trade a wide variety of cryptocurrencies.
The good thing is that you don’t really need to buy coins and worry about storing them somewhere. You can choose a cryptocurrency that you find exciting and promising in terms of trading and then continue to track its price fluctuations against fiat currencies or similar cryptocurrencies.
Buy and Sell Crypto via an Exchange
Is it really worth buying cryptocurrency? In fact, expert opinions on investing in cryptocurrency are ambiguous. Since cryptocurrencies are highly speculative investments with potential price fluctuations, buying and selling crypto assets can bring many financial benefits.
Let’s have it exemplified. The most popular cryptocurrency—bitcoin—has undergone volatile price changes in 2021, reaching almost $59K in June and then losing nearly half of its value in October.
However, at present, 1 BTC equals almost $64K. All this means that, unlike most known currencies, cryptocurrencies can be very volatile and often change their value. So, if a trader invested in BTC in June 2021, the income could be remarkable.
It means that buying and selling crypto via an exchange is beneficial, but it’s more fruitful to trade crypto CFDs with a reliable cryptocurrency trading platform like Exness.
Why Trade Cryptocurrency with Exness
Why should one prefer trading crypto at the Exness crypto broker? In fact, there are plenty of points to single out. Just cast a swift glance, and you’ll see that you would hardly ever be capable of stumbling upon any similar reliable platform.
So, the key—and the most evident—advantages of trading with Exness cryptocurrency broker are as follows:
- Trading via MultiTerminal, Metatrader 5, Metatrader 4, Exness Trader App
- Access to the economic calendar
- Ideal leverage trading crypto
- Instant withdrawals all around the clock
- Segregated accounts
- Low commissions
- Access to forex currency pairs, energies, indices, metals, cryptocurrencies, and stocks
- Narrow spreads.
Indeed, this list is not over, as the benefits of trading at Exness seem to be endless. Being either a newbie to trading or a real shark, you’ll still be able to appreciate all the most favorable conditions the company provides to its customers.
Cryptocurrency Markets and How They Work?
To have financial benefits out of investments in cryptocurrency, you need to diversify your portfolio as much as possible, not try to speculate, and also remember that, like in the stock market, any sharp jump is followed by a pullback.
Stormy times do not significantly affect the rate of cryptocurrencies; they quickly adapt to changing market conditions.
Popular Cryptocurrency for Trading and Invest
Popular cryptocurrencies for trading and investing will always be bitcoin, ethereum, etc. That is the currencies that were the pioneers. Along with the most popular cryptocurrencies, it’s always interesting – and frequently beneficial – to trade and invest in the less famous options. Investments in coins of private companies can be considered separately. For example, in the west, investments in the cryptocurrency of football clubs are popular.
You buy digital coins, and in return, you get, for example, autographs of football players, the best seats in the stands, and the ability to choose the songs that will be played during the breaks.
What Is the Best Trading Platform for Trading Crypto?
After you read this page on how to trade crypto, you might have surely got the main idea: the choice of the trading platform is not easy, and you should not focus on it. Why so? Just because here, there’s already been an answer: when trading with Exness, you encounter no troubles, problems and/or obstacles.
By utilizing all the perks that Exness provides, you are impossible to fail: the best conditions are provided by the best companies on the market. For now, you don’t have any doubts that Exness unlocks the top conditions for the traders. So, just use this opportunity and stop earning right now!
Can You Get Rich Trading Cryptocurrency?
Yes, one hundred percent. By using a reliable platform like Exness, all possible obstacles on your way to get rich trading crypto would vanish. This page clearly showcases all advantages of the company, so getting rich when trading with Exness would not take lots of time.
Is Trading Cryptocurrency Safe?
To safely trade on exchanges, it is not enough to have only the desire and money. Top traders show that it is necessary to possess knowledge, have a stable psyche, self-discipline, and be able to set goals and follow a strategy. All these skills can be achieved with experience, but understanding takes time and effort. Nonetheless, by choosing Exness as a platform to trade on, you minimize all possible risks and save up your time on your way to getting more affluent.
What Moves the Cryptocurrency Market?
The cryptocurrency market is fueled by investments (when you buy and/or sell a crypto asset, you invest). It means that being constantly involved in the crypto market enables each participant to move it and generate real income.