The introduction of cryptocurrency saw a reluctance in acceptability by different stakeholders in the past. However, as time goes by, more and more people are embracing cryptocurrency. This, in turn, leads to an increase in the value of the cryptocurrency. This is the basis of cryptocurrency trading. By definition, cryptocurrency trading is basically speculating on cryptocurrency value with a view of making a profit. There are two approaches to cryptocurrency trading. These are; using an exchange and CFD trading.
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Buying and Selling Crypto Via an Exchange
Buying crypto via an exchange involves literally buying the coins through a trading platform. After purchasing the coins, you must open an exchange account where you state the full value of the coin and put it in an open position. You then store your coins in a digital wallet until such a time when the coin rises in value, and you can sell it.
However, you can as well opt to transfer your coins to an external wallet and use them for day-to-day transactions. If you are an igamer, then you are lucky as Betonline Sportsbook accepts bitcoins. You can as well search online for other merchants and service providers that accept cryptos.
Unlike a crypto exchange where you must literally purchase coins, you do not take ownership of any coins in CFD trading.CFD trading involves speculation on the value of crypto using derivatives which means that you do not need to acquire coins. Here is where terms like going long or short come in.
Going long in CFD trading means buying if you speculate that the value of a certain cryptocurrency will increase. On the other hand, going short means selling a cryptocurrency if you speculate that its value will soon fail. In CFD trading, you are required to put up a little deposit known as the margin. This forms the basis of your payments; hence a larger margin means an increase in profits or losses eventually.
Cryptocurrency value keeps changing. This means that for you to be successful in cryptocurrency trading, you need to find a trading method that is available full time such that you can easily trade when the need to trade arises. Cryptocurrency markets are, however, not always stable, and hackers are on the rise. This is why it is important to only trade in safe and secure crypto trading platforms.
Here are the best techs for cryptocurrency trading:
In terms of volume, Binance is by far the largest cryptocurrency trading market. The crypto market is a safe and legitimate trade center for buying and selling cryptocurrency. In Binance, you can either buy or sell numerous cryptocurrencies, including Bitcoin and over 200 supported alternative coins.
The Binance app is protected by a cold wallet named the Secure Asset Fund for Users, which is not connected to the internet. 10% of all trading fees collected by Binance go to the cold wallet. The Binance App also offers savings services to earn interests ranging from a minimum of 5%. The Binance app is also a great tool if you are a beginner in trading and would like to have in-depth knowledge of crypto trading. The beauty of the Binance App is that it does not require a lot of space to run and is available both for Android and iOS.
Coinbase is also a leading crypto trading platform globally. Though it does not feature various coins like Binance, Coinbase leads in providing security to its users. Coinbase supports Bitcoin, Bitcoin Cash, Litecoin, Ethereum, EthereumClassic, Oxtoken, SD coin, and Basic Attention Token. Trading using Coinbase is easy as you are only required to link your debit card or bank account. After verifying a new user’s identity, Coinbase immediately releases Bitcoin worth $5 in your trading wallet.
Coinbase is a favorite for many crypto traders as it provides the latest news and updates concerning crypto performance. Coinbase also features a knowledge window that educates new traders on how cryptocurrency trading works and the best ways to trade them. Coinbase also boasts of having bank-level security, which allows the traders to avoid theft even in the event of losing their devices. Coinbase app is a relatively small app that runs on minimal space and is available for both iOS and Android.
The popular Winklevoss twins founded the Gemini cryptocurrency exchange. If you are looking for a secure crypto trading platform, then Gemini is the place to be. This is because to access any account in Gemini, you need to go through a two-factor authentication process. Gemini stores all its deposits either in insured hot storage or air-gapped cold storage, which does not use the internet.
The hardware security modules for Gemini are also unbreakable as they require multiple personnel with SOC1 Type 1 and SOC 2 Type 2 certification to operate. Gemini also features Gemini Pay which allows traders to send crypto to over 30,000 business locations overseas. Gemini is also available in Google Play Store and Apple store.