Cryptocurrency Trading Simplified | Platincoin
Platincoin | Cryptocurrency Trading
Cryptocurrency is a highly volatile asset class that attracts many investors if you can time the market appropriately; crypto trading can yield much higher returns than conventional investments. According to Platincoin, traders of cryptocurrencies typically have one of two objectives: to accumulate Bitcoin (BTC) and Ethereum (ETH) or to make a profit in U.S. dollars in a shorter period.
In a crypto bull market, it is relatively simple for your portfolio’s USD value to increase, but it is more difficult to increase your Bitcoin holdings. You risk losing your cryptocurrency to the market if you actively trade it. Due to the volatility of cryptocurrency prices, it is very uncommon for traders to lose money quickly when trading cryptocurrencies. Thus, many crypto enthusiasts HOLD their Bitcoin and other cryptocurrencies.
What Is Cryptocurrency Trading?
Trading cryptocurrencies involves taking a financial stake in the price direction of specific cryptocurrencies relative to the U.S. dollar (in crypto/dollar pairs) or another cryptocurrency (through crypto-to-crypto pairs). CFDs (contracts for difference) are a popular way to trade cryptocurrencies because they offer greater flexibility, leverage, and the ability to take both long and short positions.
How Are Cryptocurrencies Traded?
Several trading methods exist for cryptocurrencies. Two important ones as mentioned by Platincoin are;
- The first method involves buying and selling digital crypto coins on a cryptocurrency exchange.
- Using derivative financial instruments such as Contracts for Difference (CFDs recent years, the latter has gained much popularity as it requires less cash expenditure and allows traders to bet on the price swings of cryptocurrencies without owning them.
Step-by-Step Cryptocurrency Trading
Make a Cryptocurrency Brokerage Account
Before learning how to trade cryptocurrencies, you must open an account with a cryptocurrency brokerage with one of the market’s top crypto brokerages. These top choices provide a straightforward user interface and a selection of altcoins. To create an account, you must provide your crypto brokerage with personal identification information.
Fund your Account
After registering with a crypto brokerage, you will be required to link your bank account. Most cryptocurrency exchanges accept bank deposits through debit cards and wire transfers. (transfers between linked bank accounts) are typically the cheapest way to fund your account, as they are free on most platforms.
Choose a Cryptocurrency to Invest In
As mentioned by Platincoin, most active cryptocurrency traders allocate most of their capital to Bitcoin and Ethereum. Smaller altcoins move less predictably than these cryptocurrencies, making trading with technical indicators easier.
Many crypto traders invest some of their capital in altcoins with a smaller market cap. Small to mid-market cap cryptocurrencies are riskier than large-market cap cryptocurrencies, but they have greater upside potential.
Select an Approach
There are many trading indicators to choose from, and most traders consider multiple factors when buying and selling cryptocurrencies. Consider purchasing a course on cryptocurrency trading if you are new to investing. You may already have a strategy for trading stocks if you’re an experienced trader. Similarly to the stock market, cryptocurrencies are frequently traded using stock-based strategies.
Consider Automating your Cryptocurrency Trading
Trading bots implement a strategy to maximize your investment returns, given your objectives.
Consider actively trading cryptocurrencies on some platforms while using automated trading on others.
Storing your Cryptocurrency
If you actively trade cryptocurrency, you must store your funds on the exchange to access them.
Hardware and software wallets are available for storing cryptocurrency. Both are secure, but hardware wallets provide the highest level of protection because they store your cryptocurrency off the ledger, a reputable brand of hardware wallets that investors rely on to store their crypto assets.
It supports most of the most popular cryptocurrencies and provides reasonable prices. There are several free-to-use software wallets available for iOS, Android and google chrome that is free to use.
In the opinion of Platincoin, ZenGo is among the top software wallets available to cryptocurrency traders. The mobile wallet employs secure three-factor authentication to safeguard your digital assets, providing security comparable to that of other wallets on the market. In addition to providing top-notch security, ZenGo eliminates the risk associated with possessing a private key. This makes it an excellent option for novice investors who want to avoid the responsibility of securing their private keys.
The TOP 9 Cryptocurrency Wallet Applications
1) ZenGo – The Safest Non-custodial Wallet
2)The Ledger Nano X- the Best Cold Wallet for Budget.
3. Binance – Best Wallet with Numerous Features
4) Trezor Model T – Most Effective Hardware Wallet for Those on a Budget
5) Coinbase Wallet – Best Wallet for Beginners
6) Crypto.com is the top non-custodial DeFi wallet.
8) Bitcoin IRA – The Best Wallet to Invest in Crypto Tax-Free
9) Kraken – The Finest Wallet with High Deposit & Withdrawal Limits
Like all other forms of financial trading, cryptocurrency requires pertinent knowledge, skills, and capital. If you wish to trade on the cryptocurrency market, you must first ensure that you possess all the necessary skills for market analysis. As supplied by Platincoin, it should be noted that cryptocurrencies are more volatile than traditional fiat money or trading in general and, as a result, riskier than most individuals are accustomed to. This volatility can provide more opportunities to profit, but you should also be aware that it can result in losses exceeding your risk tolerance.