Cryptocurrencies are the cryptographically secured kind of digital currencies widely used in trading nowadays. Blockchain Technology is the method used that makes these currencies highly trustworthy and secured mainly because the digital ledger entries once made are irreversible. The market capitalisation of Cryptocurrencies has reached 100 billion in just after 6 months since early 2017 from 15 billion dollars. Cryptocurrency is the currency of the future that is what people believe. Therefore for asset growth, people are now inclined towards investing and trading in cryptocurrencies.
Cryptocurrency trading is done in 3 ways. Investors are buying and selling cryptocurrency with the help of their fiat currency; however, they can do the transaction through cryptocurrency itself if they have. Crypto to crypto is also available to trade through many exchanges. This kind of trading is available 24/7, which makes the cryptocurrency market more liquid and volatile.
Consequently, more traders are jumping into trading for hedging or speculation. Cryptocurrency is safe and secured in the digital form and transactions are protected with multilayers securities system, but it is always suggested to trade through legit cryptocurrency exchange as several exchanges exist in the market which may not be genuine. Finally, your wallet must be much protected, and there is a different kind of wallets available, and you may choose as per your requirement and safety major where you can keep your crypto assets as long as you want.
Investing Starter Guide:
- To know-how market runs
The market runs with the active involvement of buyer and sellers, and thus price moves on. There are plentiful market participants who help to provide the liquidity for the smooth running of cryptocurrency transaction. Those are exchange, clearing & settlement institution, Brokers, and traders. These all have their role in the crypto market, and some miners help for solving the problem in case of bitcoin transaction.
- To know legit broker and platform
There are various individuals or companies which try to provide cryptocurrency trading, but among those, most of them are fake, which attract customers with their Ponzi schemes. Therefore, you need to be very careful while choosing a broker or cryptocurrency exchanges. You should only go for authorised brokers or crypto exchange for avoiding any deceitful.
- To know the transactional mechanism
Before deciding to start trading cryptocurrency, you must know all the fees for your trading pair or crypto coins and must be aware of all the hidden charges. Despite altogether these, you should ask the way of funding in and payout methods as well.
- Risk involved
If you are choosing the trade with the leveraged market for cryptocurrency, then you must calculate the expected loss in case of adverse market scenario because that may go beyond your assumption as this is a very volatile market. You should have a readymade plan for such a situation to minimise the risk.
- Method of exit or settlement
After buying the cryptocurrency, one can save cryptocurrency in your wallet as long as they want or they can choose to buy or sell to avail the price fluctuation speculative opportunity. It depends upon the investor’s way of a trading plan because someone may also keep for reinvesting or buying other things.
Cryptocurrency trading is becoming popular day by day since inception due to various factors like security, safety, wider use, borderless acceptance. Since this is crypto trading which concerns about its security and legitimacy, thus you need to take intensive care for checking all the necessary points before coming into the crypto world. Investment in cryptocurrency may give good return within a period however you need to have adequate knowledge if you want to trade with margin trading and moreover, you must confirm shield twice regarding your wallets where you are supposed to store your cryptocurrency.