Do you want to know how to get started with trading Cryptocurrency? If your answer is yes, then you’ve arrived at your bus stop. In this article, I’ll be dishing out some basic Crypto trading tips, concise enough to get you started the right way.
You’ve heard about it on the news, social media, read about it in newspapers, and blogs- that people are making a lot of money every day trading Cryptocurrency. Well, I’m glad to let you know that this information is correct.
However, just like in forex trading, to make money trading Crypto, there is specific knowledge you need to possess in your arsenal to sail through. Otherwise, you will lose money. Before we delve further, let’s quickly examine what Crypto and Crypto trading is all about.
What is Cryptocurrency and Cryptocurrency Trading?
The chances are that you probably still don’t fully comprehend what Crypto is all about. Hence, to further understand its concept, a succinct definition wouldn’t be a bad idea.
Therefore, Cryptocurrency can be described as a new form of decentralized digital currency that can be utilized as a store of value or used for peer-peer transactions on the internet, outside the control of central authorities and the governments.
Cryptocurrency trading, on the other hand, can be likened to Forex trading in several ways. It allows traders to buy Crypto with US dollars. Like Forex, traders can trade with a swing, daily or weekly up-and-down volatility, or buy and hold trading strategy. Making a profit or a loss depends to no small extent on the accurateness of the trader’s technical and fundamental analysis of the chart and financial market. Hence, the need for all prospective crypto traders to be very knowledgeable before venturing into trading.
Now to the topic proper- How do you trade Cryptocurrency?
Choose an exchange: This is basically the first thing you must do to kick-start your crypto trading plan. Exchanges are crypto platforms where you trade digital currency for fiat or other digital currencies.
To buy Crypto, you will need an exchange, and to start with, it is crucial that you take the time to search for reliable exchanges that effectively deliver in your country. This is due to certain factors like transaction requirements, some do so accept traditional money for crypto purchase), the country’s laws and regulations, the need to confirm physical addresses, and few others.
Also, your choice of exchange should be restricted to those that accept fiat currency to purchase coins and do not limit or prohibit the withdrawal of coins from your account. Besides, it would be best if you be on the lookout for how long your exchange of choice takes to process transactions as well as the available payment options.
For reliable exchanges in Australia, you can follow the Best Crypto Exchanges for some valuable exchange recommendations.
Account creation: the next step now is for you to create an account with your exchange of choice. You are required to provide only original information to avoid issues in the future. Once your Crypto deposit is confirmed, you can start trading.
Carry out your first transaction: After you must have successfully created your account, you are ready for your first transaction. First, you need to connect your account to your payment source (I.e., payment method). The verification of your payment method usually takes between 3 to 5 days or more. This also is dependent on the payment method and the exchange.
The next thing Is to buy your Crypto of choice in whatever quantity you want at a particular dollar amount. Afterward, you wait for the transaction processing to be completed. This, however, may take days depending on your exchange, transaction fee, and payment method.
Finally, it is essential to let you know that if you intend to buy and hold your coin and not trade, you shouldn’t leave it in your exchange account. Instead, you move it to a crypto wallet. This is as a result of the high volatility rate of bitcoin. This way, you don’t lose parts of your coin at the very beginning.
Debunking the Top 3 Myths About Cryptocurrencies
When people first hear of cryptocurrencies, they are reluctant to take them seriously. This is because three myths stand in the way.
Let’s begin with a brief history of the cryptocurrency and the blockchain.
At first, the blockchain served to validate Bitcoin transactions. The Bitcoin, introduced to the world in early 2009 by Satoshi Nakamoto, was the first cryptocurrency. A network of peer-to-peer computers verified someone’s status based on a recognized algorithm.
The next big change occurred when Ethereum, a distributed computing platform that leveraged the blockchain, developed smart contracts, in addition to other technological innovations. A smart contract, useful for asset management, resource planning, and other applications, compressed a contract and payments into a single system. Consequently, funds were automatically released for a contracted obligation as soon as the conditions of the contract were fulfilled.
Myth #1: Cryptocurrency is only about Bitcoin
When people think about cryptocurrencies, they usually think only about Bitcoin. This is because this was the first cryptocurrency and it has been in the news because of its high runs last year and this year.
While it may have been possible to have made a small fortune buying Bitcoin soon after it launched in 2009 because prices were low, there are two reasons why long-term investors are now avoiding it. First, a whole Bitcoin is now valued at about $9,000. Second, the market is highly volatile.
Myth #2: Cryptocurrency is not legitimate
Here are some powerful reasons why some investors are taking cryptocurrency seriously. For instance, Peter Thiel, the billionaire Venture capitalist, has purchased from $15 million to $20 million worth of cryptocurrencies. For one, the blockchain solves many of the problems created by intermediary monetary institutions that results in delays and high interchange fees when funds are transferred from one party to another. For another, there are increasing signs of legitimacy that suggest that Bitcoins will be part of the mainstream narrative soon. For instance, bitcoin futures have been launched on CBOE and CME. Moreover, the Wall Street Journal has gone on the record to announce that NASDAQ will allow investors to bet on cryptocurrency the first half of this year.
Myth #3: The Blockchain is only about cryptocurrencies
Besides the mistaken assumption that Bitcoin and cryptocurrencies are synonyms, another common misunderstanding is that cryptocurrencies and the blockchain are the same thing. In truth, the blockchain is what makes Bitcoin work; it’s the underlying digital ledger beneath it.
What’s more, while the blockchain powers other digital currencies, it is also used in other ways. For instance, it has entered the real world, the offline world, through the XYO Network, which provides the blockchain’s first Proof of Location oracle network. With more than a million beacons tapping into the functionality of Bluetooth and GPS devices, it will be possible to track almost everything in transit.
Here are a few examples of how beneficial a location-verifying technology can be:
It can be used by airlines to figure out what happened to people’s lost luggage. Also, with airlines, it can also be used to maintain accurate flight data, identifying where incorrect information is appearing on across the internet, customer apps, gates and monitors throughout the airport.
It can be used by retailers to help with supply chain management when faced with a produce food recall to figure out where the spoilt produce came from.
It can be used in combination with all the devices considered to be in the Internet of Things category to understand how effectively people find new products in the marketplace.
It can be used by companies who want to share the source of origin of the products they are selling to customers. For instance, at a health food store, shoppers may want to know where the store is getting its local sourced, organic produce.
Debunking the Top 3 Myths About Cryptocurrencies
When people first hear of cryptocurrencies, they are reluctant to take them seriously. This is because three myths stand in the way.
Let’s begin with a brief history of the cryptocurrency and the blockchain.
At first, the blockchain served to validate Bitcoin transactions. The Bitcoin, introduced to the world in early 2009 by Satoshi Nakamoto, was the first cryptocurrency. A network of peer-to-peer computers verified someone’s status based on a recognized algorithm.
The next big change occurred when Ethereum, a distributed computing platform that leveraged the blockchain, developed smart contracts, in addition to other technological innovations. A smart contract, useful for asset management, resource planning, and other applications, compressed a contract and payments into a single system. Consequently, funds were automatically released for a contracted obligation as soon as the conditions of the contract were fulfilled.
Myth #1: Cryptocurrency is only about Bitcoin
When people think about cryptocurrencies, they usually think only about Bitcoin. This is because this was the first cryptocurrency and it has been in the news because of its high runs last year and this year.
While it may have been possible to have made a small fortune buying Bitcoin soon after it launched in 2009 because prices were low, there are two reasons why long-term investors are now avoiding it. First, a whole Bitcoin is now valued at about $9,000. Second, the market is highly volatile.
Myth #2: Cryptocurrency is not legitimate
Here are some powerful reasons why some investors are taking cryptocurrency seriously. For instance, Peter Thiel, the billionaire Venture capitalist, has purchased from $15 million to $20 million worth of cryptocurrencies. For one, the blockchain solves many of the problems created by intermediary monetary institutions that results in delays and high interchange fees when funds are transferred from one party to another. For another, there are increasing signs of legitimacy that suggest that Bitcoins will be part of the mainstream narrative soon. For instance, bitcoin futures have been launched on CBOE and CME. Moreover, the Wall Street Journal has gone on the record to announce that NASDAQ will allow investors to bet on cryptocurrency the first half of this year.
Myth #3: The Blockchain is only about cryptocurrencies
Besides the mistaken assumption that Bitcoin and cryptocurrencies are synonyms, another common misunderstanding is that cryptocurrencies and the blockchain are the same thing. In truth, the blockchain is what makes Bitcoin work; it’s the underlying digital ledger beneath it.
What’s more, while the blockchain powers other digital currencies, it is also used in other ways. For instance, it has entered the real world, the offline world, through the XYO Network, which provides the blockchain’s first Proof of Location oracle network. With more than a million beacons tapping into the functionality of Bluetooth and GPS devices, it will be possible to track almost everything in transit.
Here are a few examples of how beneficial a location-verifying technology can be:
It can be used by airlines to figure out what happened to people’s lost luggage. Also, with airlines, it can also be used to maintain accurate flight data, identifying where incorrect information is appearing on across the internet, customer apps, gates and monitors throughout the airport.
It can be used by retailers to help with supply chain management when faced with a produce food recall to figure out where the spoilt produce came from.
It can be used in combination with all the devices considered to be in the Internet of Things category to understand how effectively people find new products in the marketplace.
It can be used by companies who want to share the source of origin of the products they are selling to customers. For instance, at a health food store, shoppers may want to know where the store is getting its local sourced, organic produce.
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