A Beginner?s Guide to Cryptotrading

Posted by mtammy779 on October 9th, 2018

There is no denying that the value of cryptocurrencies has been going up. The growth results to opportunities in market trading and cryptotrading is now one of the options that you can choose to benefit from if you want to have some “game” in the stock market.

How it works:

The stock market and market trading discourage newbies from taking a risk because it seems to be something only for the financially elite. However, cryptocurrency involves online currency exchanges and platforms where anyone can participate and earn profit. In foreign exchange (or forex) trading is the selling and buying of currencies between traders. Basically, you are betting on the changing price difference between your chosen two currencies. You start off by opening an account and making a deposit. The funds are then used to sell and buy orders against another currency. You make a profit by selling or closing an order at a higher price. Trading cryptocurrencies basically work the same way only instead of dealing with other currencies, you buy and sell cryptocurrencies.

 Advantages of cryptotrading:

Affordability

One great advantage of cryptotrading is that the fees are cheap. For each trade that happens, the exchange platform will only take a small percentage of commission for their service. Since the fees for transferring cryptocurrencies are cheaper than bank transfer and credit card fees, cryptotrading fees are cheaper than forex trading fees.

Volatility

The value of cryptocurrency is very volatile meaning it has the potential to increase incredibly from time to time and allows you to make a huge profit once you make the right moves. However, it also implies high risk as the value can also drop low. But the higher the volatility, the higher you can earn.

Open 24/7

In the stock market, you can only trade commodities and stocks during business hours and forex trading are only done during weekdays. For cryptocurrencies, there are no limits as it is open all day, all week.

Trading cryptocurrency is not that complicated. If you need an extra hand, you can always get the 3commas bot to help you keep an eye on your funds and the movements in the market. This app is able to deal with different cryptocurrencies such as Ethereum, Bitstamp, Bitfinex, Bittrex, Binance, Kucoin, and Poloniex.

If you want to make some profit on the side, consider trading cryptocurrencies. Who knows you may do well at it and end up trading in the stock market as well.