Cryptocurrency Trading Platform - Ethereum, Tron, Bitcoin Trade
What is a cryptocurrency?
Cryptocurrency is a virtual currency that is based on the blockchain and has no paper expression, as it exists only on the Internet.
Today only the lazy one does not talk about cryptocurrency, but what is it? In simple terms, it is a digital currency, as its unit are coins. They are protected from the possibility of forgery, representing encrypted information that is not available for copying, thanks to the use of the cryptography method. Anyone can start earning cryptocurrency with special software and equipment. It is the computing power that will be responsible for solving ever more complicated algorithms, mining a coin, or, to be more precise, encrypted information. What acts as proof of the presence of a coin on the Web? Blockchain is a kind of account.
It is also worth noting that in those countries where cryptocurrency is a legal unit, it can be used to pay for any goods or services. In addition, it can be withdrawn to a card, i.e. exchanged for regular money or sold at the same exchanges or exchange offices at a higher rate and receive the difference in the form of profit.
Buying and trading cryptocurrency can also become an additional income that you can make in your free time and without leaving your home!
Cryptocurrency trading: what you need to know before you start
The digital money market is full of pitfalls. Where to start getting acquainted with a new type of asset, how to avoid losses, how to develop trading skills and how to trade cryptocurrency? These questions are of interest to a large number of users, but it is better to start acquaintance with the world of cryptocurrencies by choosing a strategy. The main ones are investing or trading. The first involves the acquisition of an asset and long-term storage. The second is short-term speculation. A trader makes many transactions with digital assets, trying to make a profit in a short period of time. Exchanges are best suited for trading digital assets. On them, the client can sell or buy cryptocurrency at any time, as well as take advantage of additional options. For example, leverage, which can be used to manage additional capital. However, this is extremely risky, as there is a possibility of losing all funds very quickly. When the choice is made, all that remains is to purchase the cryptocurrency itself. Large trading platforms allow you to do this through various payment systems, as well as using bank cards.
A novice user should first decide on a strategy: investing or trading. Allocate an amount for this, which he does not mind losing. Then buy cryptocurrencies on it and transfer to the exchange or to a cold wallet. Preliminarily, it is desirable to practice on a training account, read thematic literature and take courses.
And here you can use IQ Option, because just the same broker has a demo account, the site contains a lot of detailed information about trading and there is also a large amount of thematic literature. It does not take much time to register on the official website of IQ Option , but then you will have a lot of opportunities !!! Try now to follow the link and start trading today!!!
Cryptocurrency trading: how does it work?
Also, the purchase or sale of coins or tokens is carried out on specialized cryptocurrency exchanges.
RНL. In order to start trading digital financial assets, you will need to choose a reliable, stable, secure and popular exchange.
Cryptocurrency exchanges work on blockchain technology and are divided into 2 types:
- Decentralized (DEX) .Trading of coins takes place without the participation of intermediary organizations. The DEX does not store user information.
- Centralized (СEX). These exchanges are managed and controlled by organizations. A commission is charged for exchange operations, which covers the costs of servicing and interaction between the seller and the buyer.
The advent of blockchain and cryptocurrency technologies has created more opportunities for centralized markets to operate. This allows buyers and sellers to interact directly.
Cryptocurrency trading: what does it consist of?
Cryptocurrency trading on the exchange cannot be called a hobby, because without constant analysis, monitoring and obtaining new knowledge, the necessary experience, it will not be possible to accumulate. The result depends on hard work, market research, trade planning, the ability to adapt and, most importantly, discipline. Discipline is one of the most important things in trading, and you should follow your plan without hesitation. To conclude transactions contrary to him means to show your unprofessionalism. As for choosing a suitable platform for trading, then everyone has the right to decide for himself where it is more convenient for him. At the same time, decentralized exchanges are more suitable for experienced traders, since they have more complex functionality. However, centralized exchanges currently offer more tools for trading. If you are a beginner and want to start getting acquainted with cryptocurrency exchanges, then you can consider those that do not require verification. In general, the functionality on centralized exchanges is approximately the same, they differ in trading volume, currency pairs, and, in fact, the presence or absence of verification.
How to buy cryptocurrency?
There are many ways to purchase Bitcoin and other coins. For example, through exchangers and exchanges, for cash, by transfer by phone number.
The easiest way to buy cryptocurrency is through exchangers. As a rule, they provide an opportunity to purchase the most popular digital assets included in the top 20 by capitalization.
For the purchase of cryptocurrency through exchangers, a commission is taken. The amount of the commission depends on the cryptocurrency that the user has chosen, the payment method and the specific exchanger. If the coin is not popular, the demand for it will be less, respectively, the fees will be higher. The size of the commission charged by the exchanger may also differ due to the amount of the internal commission set by the payment system.
You can buy digital assets without a third party, directly from other people. For this, p2p platforms (p2p - person to person - from person to person) were developed. Here, the user makes a deal with another user, and the service acts as a guarantor that one will not deceive the other.
Often, exchangers are used to deposit cryptocurrencies to and from exchanges. But you can buy digital coins on the trading floors themselves. On the one hand, it is more convenient and safer, because the risk of an unscrupulous counterparty is reduced. If a user buys a cryptocurrency on an exchange, he excludes the chance to turn to the services of scammers. On the other hand, commissions for the purchase of digital assets can be significantly higher than those set by exchangers. Reason: Most trading platforms do not sell cryptocurrencies directly. They enter into partnerships with other services. It turns out that the user transfers money to a third-party company, it makes an exchange with the exchange, and then the latter credits the coins to the user. In this case, the client pays a double commission immediately, so you should carefully check the terms of the transaction.
Cryptocurrency can also be bought using crypto wallets. In addition to acquiring, they allow you to store digital assets, trade them and exchange them for fiat currencies. In some cases, it is possible to open deposits.
How to trade cryptocurrency?
When choosing a cryptocurrency exchange for trading, users should first analyze all the features of the exchanges. Cryptocurrency trading platform must meet your criteria. For example, experienced traders prefer more sophisticated platforms that offer more functionality, while novice traders want to hone their skills on less complex services.
The algorithm for trading on exchanges is simple:
- We register on the server and go through the verification procedure, which can take up to several days.
- We deposit money or cryptocurrency into a personal account (most crypto exchanges do not accept fiat money, i.e. in order to trade cryptocurrency, you must first purchase Bitcoins in an exchanger; exchanges that accept fiat money usually require a commission for deposit and have a minimum deposit).
- Let's start trading.
Cryptocurrency trading: which virtual currency to invest in?
How to choose a crypto for investment? This question is of interest to an increasing number of interested investors, people who understand the limitless potential of the cryptocurrency world. A question that seriously excites the minds of people far from the fields of finance.
Bitcoin is currently the leader. And now Bitcoin occupies the first positions not only in terms of total capitalization and time of creation, but also in terms of status and universal recognition.
Generally speaking, you need to invest in the digital currency that you are confident in the prospects.
How to trade Bitcoin?
Before you start trading Bitcoin, you need to allocate a portfolio of assets. The essence of any trading strategy is to buy low, sell high, but this is simply put. The task of a crypto trader is not only to know what to buy and when, but also to know what amounts can be spent on individual transactions. Experienced crypto investors advise using a simple but effective 40/20/10/30 scheme:
- 40% - an investment in low-risk assets, for example, in Bitcoins, which already have a reputation in the market and are time-tested.
- 20% - medium-risk assets, popular altcoins recommended by most traders.
- 10% - high-risk assets, little-known but promising coins.
- 30% - a reserve in case of "drawdowns" of the deposit as a result of unsuccessful transactions.
This is an example and is not investment advice.
Bitcoin trading involves the use of different trading strategies, such as:
- Day trading. This type of trading is considered the most famous trading strategy. It is a common misconception that all traders are, by definition, day traders, but this is not the case. Day trading involves entering and exiting positions on the same day. Traders seek to capitalize on intraday price fluctuations, i.e. price changes that occur within a single trading day.
Bitcoin day trading can be very lucrative, but it is often quite stressful and high risk, so it is recommended for experienced traders.
- Trend trading. Trend or position trading is a strategy that involves holding positions for several months. The trader is trying to go long in an uptrend and short in a downtrend. The strategy assumes that the underlying asset will continue to move in the direction of the trend. Various technical indicators are used for the analysis, which help to reduce the risk of errors.
- Swing trading is a type of long-term trading strategy that involves holding positions for more than one day, but usually no more than a few weeks or a month. The trader tries to take advantage of the waves of volatility that take days or weeks and use a combination of technical and fundamental analysis to assess the market situation.
This type of trading is most convenient for beginners, as it gives enough time to think about decisions.
Buying and Trading Cryptocurrency on IQ Option: Benefits
IQ Option is one of the best platforms to start your trading journey. The platform is fully regulated and is without a doubt one of the safest places to start investing your assets. With its ease of use and user-friendly interface, you can be sure to keep an eye on your trading perfectly.
IQ Option has a ton of benefits for crypto trading:
- Trading with CFD.
- The platform is very easy to use even for beginner traders.
- Having a demo account.
- You can trade with your smartphone through the mobile app.
- Ability to purchase a wide range of cryptocurrencies.
- Regulated broker.
- Platform convenience.
- Excellent customer support.
- A large number of assets.
- Deals from 1$.
Thanks to the consistently high quality of service, favorable terms of cooperation, and the professionalism of technical support managers, today the number of IQ Option clients around the world is only increasing. Take advantage of this opportunity now, follow the link and start trading today.