If you are looking for another way to invest your money, you probably heard of Crypto Trading. Some of your friends that are into the financial industry might have suggested this with you before.
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To give you a better understanding, Crypto is a booming market that has become popular as major cryptocurrencies such as Ethereum and Bitcoin have joined the mainstream that is completely powered by Blockchain technology.
What is Crypto Trading
Something important to take note of when getting into Crypto is that you are your own bank. Instead of real money, you are using cryptocurrency. Which can be traded for another, buying and selling coins, and exchanging fiat money into crypto. Trading crypto is far more different than traditional markets like Indices and Forex, as they are not influenced by other forces compared to other more established markets. However, it has some likeness with the foreign exchange, where fiat currencies are traded 24 hours a day.
We’re all used to having central authorities to get in touch with whenever we make user mistakes, such as forgetting our own password or our login details. There are institutions that can help us retrieve this information every time we commit human errors. However, in the world of crypto, there is little to none institution that can help us out whenever we make mistakes. Remember that the majority of these assets are decentralized. The main idea of this is to give back control of funds or any assets to the people.
Though crypto is not widely accepted in a vast number of countries around the world, many believe in its potential to change how money works. However, in every success, there is always a downside. Even in a normal bank transaction, some people are always trying to create various scams to steal funds. In crypto, once you are victimized by a scam, then everything is lost. There is no way you can retrieve your money back. Transactions on the blockchain network are changeless and permanent. Once a transaction has successfully been transferred and has been validated and uploaded to the blockchain, there is no way you can undo that transaction. As a future crypto user or just planning to get into crypto, you should know how to take the necessary precautions to secure and manage your funds.
Things to Prepare
Here are some of the things that you should know about before buying or selling your own cryptocurrency.
Take security measures seriously. One of the fastest and easiest ways to do it is to create a separate email address for your crypto. Only use this email address for any crypto-related transactions. Keep it separate from your email or work email that you easily give out to people. As much as possible, no one should know about this email except you.
Make sure that the password into all your crypto accounts is unique and secure. According to some crypto users, you may use a long random combination of alphanumeric keys and make it at least 12 characters. If you are the type of person who uses one password for all of their accounts, you may want to use a different password to your crypto account. It is much more susceptible to scammers.
Two Factor Authentication Apps
It is very common on crypto trading and other platforms to key in passwords every time you buy cryptocurrency or make a trade. Apps like Authy and Google Authenticator helps you generate a time-based, one-time password. So every twenty or thirty seconds the numbers will change. Adding a layer of protection for you and your funds.
Buying and Selling Cryptocurrencies
When you buy cryptocurrencies, you need to go first to something they called a crypto exchange. You’ll need to make an account, decide how much you want to put as your asset to open a position. Once you’ve got your cryptocurrency, store it in your preferred wallet. Whether it be on a hardware wallet, paper wallet, or software wallet until you are confident and ready to sell. Trade and exchange can be a little bit tricky to understand as you’ll need to learn and keep up with the technology.
How does it work
When you are ready to trade crypto, open your preferred exchange. You have to choose between transferring your existing crypto to an exchange or use the exchange to buy crypto. The exchange gets hold on to the crypto, while you oversee the price of the other cryptocurrencies. When you see that it is time to make the trade, place your buy and sell orders. The exchange, on the other hand, finds a buyer or a seller that matches your desired trade. The exchange then ends the transaction for you.
Where to trade Crypto
Now that you know how to crypto trading works, it is important to know where to trade your cryptocurrency. There are a few exchanges you can use, and the most popular among them is Coinbase. It is one of the most well-known exchanges in the world as it offers a user-friendly interface, and it allows you to buy crypto using US Dollars.
Another popular trading system is Bitcoin Loophole. It is an automated system that claims to make money when users buy Bitcoin and trade it at the right time. It claims that it has an 88% win-rate. As a first-timer in the world of crypto trading, taking advantage of the bitcoin loophole is never a bad idea as long as you are sure with what you are doing. If you have hesitation, you can start with a small amount of money and see how it goes.
How Cryptocurrency Market Move
The world of crypto is based on supply and demand. Since they are decentralized, they are usually free from economic and political issues that affect other currencies. Same with traditional markets, cryptocurrency also has the uncertainty that surrounds it. Some of the factors that can create a significant impact on its price are its total number of coins that are released, destroyed, or lost and the value of the coins, and how users see it progress.
Crypto trading can be hard to understand at first, but once you get a grip on it, you’ll see how your money flourishes in the world where every decision gets an immense value in return.