Cryptocurrency exchanges are websites where individuals buy, sell, or trade cryptocurrency for other digital currencies or traditional currencies. Just as the traditional forms of currencies can be traded against each other in forex, cryptocurrency can be traded on specific pairs as well, in dedicated platforms called crypto-exchanges. Not all cryptocurrencies are directly traded against each other, and some platforms have more trading pairs than others. Cryptocurrency exchanges can convert cryptocurrencies to large, government-backed currencies, as well as converting cryptocurrency to other cryptos.
With cryptocurrency trading, you get access to decentralized cryptocurrency exchanges. You do not necessarily need to have any cryptos in total to trade cryptocurrency derivatives, and can just place a bet in the markets if you so choose. Trading crypto derivatives allows you to leverage - multiplying gains and losses - open short positions to make direct gains on a drop in cryptocurrency prices, reduce risks with hedges, and execute large transactions even when markets are relatively quiet. Day trading cryptocurrency is a risky endeavor made possible by the distinct volatility and liquidity of the crypto markets.
"Always remember that every profitable trader started as a beginner and that with experience and learning, he was able to create his own strategy and generate good results" | Anonymous
With thousands of new cryptocurrencies emerging in exchanges and trading platforms, anybody considering cryptocurrency investments must also take the volatility and speculative nature of the markets into consideration. In addition to pricing risks, the cryptocurrency space presents a few unique security risks not found in conventional financial markets. This is a risk in trading anything, but the unique characteristics of the market means that this is a special problem there. A simple way of deciding if a given cryptocurrency is a good day-trade candidate is to see whether it has a lot of liquidity (a lot of fiat associated with it, usually expressed in terms of market capitalization =->=) and high volume (a lot of people are trading it).
The basic start-up point to crypto trading is owning a certain amount of the currency you are looking at (such as Bitcoin) and having means of exchanging this currency. If you already have some cryptocurrency, you can move it to an account either through your digital wallet or on another platform, and then use that to make a trade. In other words, you can trade actively on the crypto markets, without having to perform any research or make any orders. Trading bitcoins (BTC) can vary in size and complexity, ranging from simple transactions like withdrawing money into fiat currencies such as USD, to using various trading pairs in order to profitably navigate the markets never-sleeping to build an investment portfolio.
"In trading you also have the opportunity to learn to overcome greed and overconfidence" | Anonymous
The cryptocurrency market is made up of financial instruments that are priced according to the value of a virtual currency. By using technical indicators to analyse cryptocurrency charts, traders and investors can understand what emotions are running through the crypto markets, and how cryptocurrency prices are going to be affected. The cryptocurrency markets has positives aplenty, which means as a trader, you will have better opportunities for trades in cryptocurrency markets compared to the stock markets.
"Do not think that things have become easier over time, on the contrary, they are more difficult, only that you are becoming better" | Anonymous
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This is an informational article, I do not promote, endorse or recommend any particular investment, investments may not be suitable for everyone as the entire amount invested could be lost.
