How To Start Trading Cryptocurrency?
by Abdul Aziz Mondal Finance Published on: 17 December 2022 Last Updated on: 16 October 2024
As you know, the first cryptocurrency appeared in 2009. At that time, people could not imagine how much the cryptocurrency industry could develop in just over a decade.
Many investors and traders at the time were skeptical about digital assets and continued to trade only on the traditional stock exchange. However, as time went by, the cryptocurrency industry developed with it.
Today, hardly anyone can be surprised by the fact that there is no physical currency that cannot be held or deposited in a bank account. Instead, blockchain technology has arrived, and in cryptocurrency exchanges and crypto wallets, holders of digital assets keep their funds.
Despite the fact that cryptocurrency is quite popular today and coins are plentiful, there are people who have no idea how to engage in crypto trading. This article will be devoted to newcomers in the market.
What is cryptocurrency?
Cryptocurrency is a digital, virtual asset/currency. Cryptocurrency is used in the same way as conventional money (fiat), which everyone is used to. It can be used to pay for online purchases, store and multiply through trade or investment.
While you can trade traditional money against each other in the Forex markets, there are platforms for digital assets that are called crypto exchanges.
You may have heard of many of them, such as Binance, OKX, Kraken, By bit, etc. At all of these exchanges and not only, it is also possible to engage in automated trading with RevenueBot.
One may wonder: if they are so similar, then why switch from conventional money to virtual? The answer is that, unlike dollars and euros, cryptocurrencies generally do not have one specific controlling authority. They are also protected through sophisticated cryptography combined with a new form of online public ledger called a blockchain.
How to trade cryptocurrency?
When exploring the cryptocurrency market and finding ways to make money with digital assets, you may come across articles about crypto-trading and investing. These are the most popular ways to profit from cryptocurrencies.
- Crypto-trading. A way of earning cryptocurrency by trading on an exchange. In its essence, it is not much different from traditional trading. A trader buys an asset at a low price, waits until it rises slightly, and then sells it, earning the difference.
- Investing. This is a little easier than trading. You don’t have to follow price charts, wait for a change, and then sell the asset. Investors typically invest in cryptocurrencies for the long term, which can be as long as a year or more. Alternatively, there are those who invest in small amounts each month and in different assets. This allows you to dilute your investment portfolio and diversify your risk.
Whatever way you choose, you need to understand that cryptocurrency trading must be done with a certain amount of experience behind you, otherwise you risk losing your deposit.
Also, if you choose crypto trading from the above-mentioned methods, it is worth a good study of the market and exchange trading. In case you don’t have time for that, you can use services from RevenueBot, a service for creating trading bots. Trading bots are capable of trading cryptocurrency for a human 24/7 and still generate potential passive profits.
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