How to Become an Expert at Cryptocurrency Trading?
Cryptocurrency is one of the most valued digital currency in the trading market. It is also one of the most volatile markets. It is this volatile nature of the cryptocurrency market that brings an opportunity to gain high-profit margins. However, with higher profits comes a greater risk of loss as well.
So, how do you go about trading in cryptocurrencies?
We bring you the perfect guide for “How to become an expert at cryptocurrency trading?”.
What is Cryptocurrency?
Cryptocurrency is a digital asset that is used as a means of exchange like normal or fiat currencies but is intangible in nature. CryptoCurrency utilizes cryptography to strengthen the security of financial transactions, control the addition of units and in verifying the transfer of the assets. Since cryptocurrency is a fully decentralized digital currency, it does not belong to any particular country or government and there is no governance by any central bank. Much like gold and silver, the value of a cryptocurrency depends on the market demand and supply.
10 BEST Cryptocurrencies to Invest in 2019
Bitcoin(BTC) was the trailblazer in the Cryptocurrency market. After its launch, many cryptocurrencies have been introduced in the market. These are also known as Altcoins. With the high value of Bitcoin, the altcoins act as alternatives to it. Some of the major Cryptocurrencies to invest in other than Bitcoin are:-
Litecoin (LTC)
Ethereum (ETH)
Zcash (ZEC)
Dash (DASH)
Ripple (XRP)
Monero (XMR)
Bitcash (BCH)
Getting Started: Cryptocurrency Trading with PCEX
In order to start trading in Cryptocurrencies, you need to first identify a good cryptocurrency exchange. Upon decision, you need to sign up as a trader with the exchange in order to start trading. One such cryptocurrency exchange is PCEX. PCEX is based on a 5-layer security model and charges as low as 0.05% transaction fees.
PCEX provides you a platform to not only invest in trading but also act as a sub-broker under its franchise model.
How the Cryptocurrency Trade Works?
The traditional way of trading in cryptocurrency is to buy Bitcoins using fiat or normal currency. Then, you can choose to exchange these BTC for other altcoins through a cryptocurrency exchange platform.
These transactions require one or two digital wallets to store the purchased bitcoins and exchange them with other altcoins.
Steps to Start Trading in Cryptocurrency
1. Sign Up: You need to sign up with your chosen exchange and create a portfolio. Depending on the platform, you may need to verify your credentials using ID proofs.
2. Create a plan: Start by assigning a budget for trading and sticking to it. The cryptocurrency market is always fluctuating, that’s why it is important to stick to your plan. Create a stop loss line and the maximum amount that you can borrow without suffering tremendous loss. Stop-loss is a criteria where you pre-define the amount at which you will stop trading in case you suffer losses.
3. Study the cryptocurrency market: Understand the cryptocurrency market and choose the bitcoin or altcoins you want to invest in.
4. Start Trading: Once you have decided on buying one or more cryptocurrencies, start trading using your trading account with your chosen exchange. You can also study about cryptocurrency margin trading and use leverage to gain higher returns.
Use the Best Investment Strategies for Cryptocurrencies and Tips to Start Crypto Trading.
Cryptocurrency is a high-in-demand digital currency that works as an asset with the potential of greater gains. However, if you understand the basic know-how, work according to a plan and follow the above steps, you can become a Cryptocurrency expert with time.
