First steps in cryptocurrency trading
The article is about:
cryptocurrency as a profitable business;
who buyers and sellers are;
why trading is profitable;
services for trading;
importance of experience.
Active implementations of digital technologies in all spheres of people’s life led to the emergence of new directions in business, one of which was the cryptocurrency trading. The skeptical attitude to virtual money, which functions independently of state financial systems, is replaced by a lively interest. More and more investors and entrepreneurs are focusing their efforts and resources towards it. Even the schoolchildren know how to mine bitcoins and other types of cryptocurrency. Mining is a promising and profitable type of activity under certain conditions, but another part of businessmen are more interested in how to make money trading cryptocurrency.
Buyers and sellers: who are they?
The very idea of a cryptocurrency is to create an alternative monetary system for settlements, payment for goods and services, donations and other purposes. At the present stage there is a strong demand on exchanging BTC, ETH, DOGE, LTC, etc. into the fiat money. Efficiency, reliability, high level of protection against hacker intrusions – the cryptocurrency world promises maximum comfort and convenience to the system participants. An ordinary consumer or a large international organization can act in the role a buyer and a seller as well. More and more cryptocurrency holders appear every day, every hour, so the trading becomes a successful business and a popular service.
Why trading cryptocurrency is profitable
How to spend bitcoins and money in general – all will perfectly cope with this task, but not everyone can become a successful investor or a cryptocurrencies trader. The secret is not in special skills and abilities. There are certain principles and rules, penetrating into which you can try yourself in a new assignment. Of course, you have already installed a wallet, haven’t you?
The cost of cryptocurrency demonstrates trends in the rate increasing. Even after a sharp drop, the rate returns to normal rather quickly and even rises. Earnings on the difference in rates are very attractive.
The emergence of new cryptocurrency opens up additional opportunities for investments. A good knowledge of the market and trends in the development of coins will help to orient and make the right choice.
Cryptocurrency, bitcoins in particular, can be sold through exchange services and exchanges. Some traders work privately on peer-to-peer trading platforms. More details about the interaction with exchange services and exchanges will be discussed below.
Exchange service makes it possible to exchange cryptocurrency for fiat money. There are special resources, for example BestChange, which allow in real time to find an exchanger with the most favorable rate and the lowest commission.
The exchanger works as a mediator, i.e. cryptocurrency is sent to its address, and then the money comes to your bank card or electronic wallet. The number of banks that display interest in such operations is constantly growing.
On the website, whose services you are interested in cryptocurrency trading, you will have to fill out an application or to register, so that you can automatically convert your funds afterwards in the future.
Of course, you need to trust your money with a reliable resource. Currency reserve, age, availability of certificates and certificates, availability of technical support and positive feedback are the main criteria for choosing an exchanger.
The activity of users of P2P platforms has increased. Unlike the standard centralized exchange, the conversion is made directly between buyers and sellers. A platform does not have a central server. It is replaced by nodes, which not only ensures complete confidentiality of participants, but also allows resisting censorship and hacking. The peer platform allows bypassing the restrictions connected with the state ban of standard exchanges for cryptocurrency trading.
The rules are followed by the moderator. He also helps to resolve disputes between participants. The most visited peering platforms for today are Bitsquare Paxful and LocalBitcoins. The mobile application BitKan which is intended for Android and iOS is gaining popularity. The program allows buyers and sellers to find each other without intermediaries and involves working with relatively small amounts – up to 5 BTC. With turnover increasing you will have to provide personal information to the service.
The very word “stock exchange” can scare off newcomers, when actually using the exchange is simple, convenient and profitable. And you do not need to be an experienced broker to deal with all the nuances of its work. From the list of exchanges, EXMO.me, C-CEX.com, Livecoin.net, and Yobit.net are the most popular. Each service sets its fee for transactions. Many exchanges encourage their members with bonuses, free coins and hold promotions.
The main object of exchange participants’ interest is trading in so-called currency pairs, for example, BTC / USD or BTC / RUB. Success in this business guarantees a high income. The speculative principle “buy cheaper” and “sell more” prevails here.
Any exchange requires registration of participants so you cannot act fully anonymously. In addition to the login, password and e-mail, two-factor identification should be included; confirmation by SMS or by means of using a special Google app.
At the very beginning newcomers should start with minimal deposits. You can recharge the balance through such services as Capitalist, Perfect Money, etc. Through them, the withdrawal of money “into reality” is also carried out.
So, you transferred the currency balance a certain sum of money and chose the currency pair offered by the exchange. Based on the bidding schedule and the offers list, you choose the best option and confirm the purchase order.
To place an order, it is enough to select the desired cell in the line. In the window that appears, you record the cryptocurrency amount for sale and activate the function. After a while on balance with BTC you will have USD.
It remains only to withdraw money to a card or an electronic wallet! This is just the beginning: the skill comes with experience, but you get to work in the exchange, it is necessary to study such definitions as “scalping”, “bid” and “ask” price, “exchange arbitrage”, “spread”, “volatility trading” and put them into your everyday vocabulary. All these tips will help develop your business intuition, play on rates and thereby make money trading cryptocurrency more successful.