Essential Tips for Beginners of Cryptocurrency Trading
The popularity of cryptocurrency trading is increasing with the increase in cryptocurrency value. Just last year, bitcoin (BTC) grew to a whooping USD 10,000+/BTC from only below USD 1,000/BTC. Naturally when such a growth takes place, there is a blast in market trading, which further helps the currency to continue growing.
Beginners can get a very good opportunity in cryptocurrency trading because they don’t have to own a wallet and even don’t have to buy it.
How to Choose a Cryptocurrency Trading Platform
You’ll have to note the following facts.
Availability: Bitcoin to USD is available widely, but other fiat and cryptocurrencies might not be so widely available.
Leverage: You are allowed by leverage to trade more than your initial deposit and increase your profits. Leverage can typically be up to 20:1 with cryptcocurrency, based on the platform as well as the currency pair you choose. Here it’s recommended for you to start trading with just $10 minimum deposit with Tenkofx Broker.
Features: Check if your trading platform offers you features of stop loss, hedging and other options that can offer you an increased control over trading. Seasoned traders could take benefit of these, while beginners might choose to keep it simple.
How does the Trading Work?
Gone are the days when market trading was seemingly a monopoly of financial elite. With the growth of cryptocurrency, there is a growth in trading platforms and online exchanges in which anyone can participate in market speculations, provided you know how it works.
Forex and Cryptocurrency Trading
If you understand what forex trading is, you can understand cryptocurrency trading too. Forex trading is the buying and selling of currencies. In other words, you are taking a chance on the difference between the price changes of two currencies. You’ve to open an account and deposit money into it which is then used to place orders for buying and selling against another currency. When there is a higher price than you bought, you make profit from selling it.
The difference between forex and cryptocurrency trading is that rather than trading (buying or selling) fiat currencies like USD or Euros, you trade cryptocurrencies, like bitcoin, litecoin or ehtereum, among themselves or against fiat currencies. For example, you might gamble on the changing price difference between bitcoin and US dollar or even between BTC and ETH.
If you have a feeling that bitcoin’s value will increase, you can “go long” on it which means betting with a thought that its value will increase against US dollar. If you have a feeling that bitcoin’s value will reduce, you can “short” it which means betting with a thought that its value will fall against US dollar. Here you don’t need to actually buy the cryptocurrency, but only place an order on its value.
If you want to start cryptocurrency trading, study well and better take help of a pro like Tenkofx Broker and you can gradually learn how to earn profit.