Cryptocurrency Trading In Exchange
Cryptocurrency trading is a new promising area in internet trading bringing an opportunity to get profit trading cryptocurrencies. Cryptocurrency appeared a short time ago (in 2009, Wikipedia) offering the advanced money approach for Internet settlements – with no control, commissions and agents, and conduced the uprise of a huge, incredibly profitable market with fantastic profits, comprehensive crypto economy followed by its new laws and rules.
All this literally occupied those minds who concern on modern technologies and additional sources of revenue. Well, what is the cryptocurrency trading and how cash in on it? Let’s talk about in our review.
What is the cryptocurrency trading and how to cash in on it?
Before answering this question we give the definition of the term “cryptocurrency” – it is the virtual currency, its unit is a coin, which is issued in the Internet, isn’t related to the usual currency or any state currency system; to say simple, it’s the electronic money.
Cryptocurrency trading is the same Internet trading, just in this case instead the traditional assets (currencies, shares, stocks etc.) the trader deals with cryptocurrencies (for example Bitcoin, Litecoin, Quarkcoin etc.). Unlike binaries and Forex, this market is even more vibrant and vagarious, the appetite to it is continuously whetted by quick price increase, and “crazy currency bouncing”. Such a chance to make fantastic profits out of cryptocurrency at short notice became a topic of bitter arguments: someone accepts cryptocurrency, others argue against, however it presence in the market makes sense and especially essential in the age of the overall globalization and Internet evolution (how to make money in cryptocurrency market? learn here).
Everything is traditionally indeed, if you tried trading binaries, Forex etc. Traders buy cryptocurrency at the most favorable rate and sell it waiting for price increase. To trade cryptocurrency you don’t have to perform complicated manipulations, your main tools will be charts, on which you can estimate the currency trend: up or down, recession or upleg; orders – or, in other words, requests of crypto market players on cryptocurrency purchase or sale; transaction history, which helps you to monitor transactions list in exchange and which tools were used for their performance; traded values, which let you specify the cryptocurrency values changing hands. Sure enough, indicators, strategies, automated trading are available for you, you can make money mining, cloud mining.
Market volatility, continuous growth or drop in the currency rate, higher risks, which the investors face resulted in the entire “cryptocurrency fever”: no everyone is interfered in disputes on when the digital currency would burst and what happens next? Due to news, startling statements and calls we all know, when the surge pricing of such currencies happen and when they go down.
Cryptocurrency volatility is hundred times higher than its index among traditional trading options. But cryptocurrency trading is also loss risks, and if you didn’t manage to monitor the trend change, you risk to lose your money. The risk is also in the cryptocurrency future, which is vague and today is not clear what happens after this “bubble bursts”. After all, crypto exchanges may be blocked, hacked, your account may be hacked because of weak password, and, since the exchange is not responsible for such cases, all the losses fall on the trader shoulders. Obviously all these risks don’t stop investors from trading cryptocurrency and getting royal profits, the chance to get quick money attracts to cryptocurrency trading a growing number of market players today.
Basic terms by crypt currency trading
Cryptocurrency — digital currency issued by attacking mathematical problems based on cryptography.
Cryptography — mathematical «language» used by ciphers and codes generation for the information to be secured and hidden; applied by bitcoin transactions confirmation.
Blockchain — file/data base or “transactions log”.
Mining (English “mining” — extraction of mineral resources) — getting cryptocurrency (cryptocurrency program code) through computational performance; the computational performance is provided by users for new transaction blocks generation, with that the user may reckon on payoff by cryptocurrency coins.
Miners — people engaged in mining, in other words, getting cryptocurrency – search of millions of combinations the only true code (otherwise called hash), which secures them the payoff.
Cryptocurrency exchange – trading platform used by traders, which want to get profit through cryptocurrency trading.
Bitcoin — the first cryptocurrency in the world available for traders as digital currency.
Satoshi — the smallest indivisible part of bitcoin (or bitcoin-copeck; 1 bitcoin is equal to 100 000 000 satoshi).
Altcoin — common name of cryptocurrencies, which are offered in the market instead of bitcoin.
Fork — cryptocurrency, which appeared in the market after bitcoin and other altcoins and is their partial analogue.
Crane, faucet — special internet resource, where users can get cryptocurrency for the challenges done.
Pump — large-scale digital currency purchase for its stock jobbing.
Damp – price “slump” planned by high rollers.
Fiat, fiat currencies — real money, which price is set by state (RUB, USD, EUR, etc.).
What is the difference between Forex trading, trading binaries and cryptocurrency?
Such a difference exists, it is significant and now rather works for a trader. Unlike traditional and familiar financial markets (for example, binaries, Forex), the profit from cryptocurrency trading is hugely more high than in standard markets due to its “fantastic volatility”. However the percent o risks and losses is also high in the cryptocurrency market: you aren’t safe from crypto exchange block, your account hack (despite of strong authentication) etc. Crypto exchanges don’t have regulations, as there is no completed regulatory structure for this marketplace yet, and the virtual market rather complies with common safety requirements, need of user verification, which doesn’t protect traders from unforeseen situations though.
Binary trading is one of the simple and available investment options. As you know, trading options the trader has just to estimate the supposed quotation move (up or down). Forex trading (all truth about Forex) is somehow more complicated than the binary market, requires better knowledge and calculations (the proficiency in using pending orders, stop losses, margin calls is a must), however the incomes here may be higher than by binary trading. Cryptocurrency trading doesn’t need comprehensive knowledge in trading, and yet to get the profit, the investor needs monitoring the digital currency dynamics, noticing the coins in great demand.
As we already pointed in our article, the keystone of such trading is cheaper purchase and more expensive sale of the currency. Trading in usual financial markets you can monitor the market dynamics and possible changes by news and high-profile events, it’s not all that simple with cryptocurrency. After release of any crucial news the dynamic of digital coins may change several times, apart fom this, there is another interesting twist here: if a group of traders agrees for the large scale purchase/sale of virtual coins, it also may cause the virtual market changes and if you didn’t monitor them, you will lose your coins.
So what do you do? «Playing Vanga» (or «petting a cat»), the joke wide spread in virtual trading) certainly doesn’t work for you to get rich. You should be serious and know how to analyze the market, monitoring the climate among its players. Also work properly with the set of standard tools available on crypto exchanges – charts, order book and trading history, orders (here are BUY (purchase) and SELL (sale) orders accepted, also in some exchanges you may use stop-orders (which will let you get profit by reduced risks) and stop-limits (orders pending till attaining the mark of the price set). All these data properly used will help you analyze the market situation in a right way.
Forex, like binaries, is attractive because you are safe somehow, as solid brokers make efforts to get licenses, house within professional associations, all this gives a confidence of traders boost. Crypto exchange won’t give you that. And despite of the fact that digital money become one of the assets of binary or Forex trading and may bring you high profits, they don’t leave you 100% sure that it’s going to be the easy money. The digital currency is dynamic and you are supposed to be good in using information and reacting the market sentiment changes timely.
Why do you need a cryptocurrency broker?
First, trading cryptocurrency traders got profits by mining, then to start working with virtual money they signed up at crypto exchange. So happens also now, but due to continuously increased popularity of digital currency the cryptocurrency trading appeared, performed by cryptocurrency brokers. Such cryptocurrency brokers for example are the following compnies today: Alpari (official website), FreshForex (official website), Grand Capital (official website), 24option (official website), InstaForex (official website), HYCM (official website), Forex Club (official website), etc.
Forex brokers (as well as binary brokers), which among available assets offer also the cryptocurrency trade, are more popular by traders. In this case, working with cryptocurrency you are safe from hacks, which crypto exchanges are famed for. The broker obeys the laws, has licenses. But here you also need to monitor cryptocurrency trends as the risks of sudden losses of virtual money are still there.
Cryptocurrency brokers ratings are also popular in Internet (it may be both binary brokers and Forex brokers), feedback from traders on dealing with their trading terminals. While composing cryptocurrency brokers rating the following factors are considered: license availability, experience in the market, image, feedback from traders, available cryptocurrencies (brokers AMarkets (website), Alpari (website), InstaForex (website), Forex Club (website) have a great number of available cryptocurrencies: apart from Bitcoin (website) and Litecoin (website), there are also Dashcoin (website), Ethereum (website), Monero (website), Zcash (website), Ripple (website), etc. available for users). So trading cryptocurrency with a broker will reduce your risks and work in a safe terminal.
Why cryptocurrency broker is better than cryptocurrency exchange? If you are not experienced in trading in financial markets, this information will be crucial for you, and being aware of crypto exchanges disadvantages you will save your time and your money. Starting to trade cryptocurrency you need to know, that exchanges often provide its users a not user friendly trading terminal, hard to work with not only for novices, but even for professionals in trading. The cryptocurrency broker offering cryptocurrency as one of the assets, lets a trader work the way he used to. Trading at crypto exchange is often absolutely unfavorable for beginning traders: here are big deposits, commissions and payments for service, executed transactions, expensive money transfers to wallets.
One of the core issues of crypto exchanges is their inadequate safety level, they are often attacked by hackers and close, at that, if your account is hacked, the exchange won’t reimburse your lost money. The cryptocurrency brokers certainly have their disadvantages, too (for instance, limited number of cryptocurrencies), but there are enough disadvantages as well, so lots of traders work with safe trading platforms. Such brokers, like binary brokers and Forex brokers, put efforts to provide quality service, training programs, useful materials in your native language, you can as well set your questions the customer support and get expert answers. Trading here is more smooth and simple than in crypto exchange.
Platform for cryptocurrency trading
The platform for cryptocurrency trading lets you work at ease with cryptocurrency making the trade functional. Choosing the right currency trading platform you can set your work more efficient and focus on priorities. The today’s cryptocurrency trade is possible either on crypto exchange or by cryptocurrency brokers (binary brokers, Forex brokers).
Choosing a crypto exchange you will face the fact that there are plenty of such platforms in Internet. How to pick the one that fits just you? The good cryptocurrency trading platforms (for instance, Poloniex (website), EXMO (website), LiveCoin (website), Bitfinex (website), Cryptonit (website), Kraken (website) etc.) have the following set of features:
1.A cheer number of cryptocurrencies, both of great demand and becoming popular. The wider is the choice of coins, the more profitable is the trade;
2.Quick and smooth deposit and withdrawal, Crypto exchanges make efforts to offer their users various ways of money transfer: payment terminals, bank transfers etc.;
3.Exchangeability of cryptocurrencies into rubles etc. Not any platform provides this option;
4.Platformlanguage. Part of crypto exchanges strives to offer to Russian traders information and support in Russian, but not any platform boasts it. As for technical support, here it’s complicated and either you won’t be able to contact managers or if the best happened it will be in English;
5.Availability of mobile applications, which let you trade in any part of the globe;
6.Tools for trading and information analysis (orders, charts, graphic elements, indicators etc.). The more additional tools you have, the more chances you get to reduce risks and increase your capital;
7.Platform safety is the one of the core challenges of crypto exchanges and attracting traders to the platform the exchanges promise traders, that following all the safety tips (complex passwords, strong authetiction etc) they can trade smoothly and not worry about their accounts to be hacked and all of the money to disappear. Despite of hacker attacks still being a threat for exchanges, we recommend to follow the tips of safety offered by the resources.
8.Positive feedback from traders about the exchange.
All these aspects work for a trader also when choosing a cryptocurrency broker. However what the trader is supposed to choose for trading – a crypto exchange or a cryptocurrency broker, is his own business. Not any crypocurrency broker can offer the maximal functional for trading cryptocurrency: cryptocurrency trading and exchange, trading on weekend, while traditional exchanges are closed, implementation of more wide spreads while strong market volatility, comfortable commissions and contributions by digital currency trading service.
Cryptocurrency trading on Android and Apple
Cryptocurrency trading is a serious job, which efficiency depends on continuous market trends monitoring, and it’s more easy to do now due to growth of technology. Mobile applications Android and Apple let you trade whenever it’s comfortable for you, any time, in any place of the world. They have the tools you need for smooth 24-hours trading and not only let you trade digital currency, reacting on market changes timely, but withdraw funds easy and quickly.