What should you know about Cryptotrading in 2020
The explosive growth in the number of traders on crypt-currency trading platforms took place 1.5-2 years ago (is crypt-currency a divorce?). Many of them left crypt trading after a prolonged decline in the value of the cryptovoltaic currency. However, there are still a lot of people who want to earn on the crypt currency and new players appear (variants of earning on the crypt currency).
Preparing to trade Crypt Currency
What is cryptotrading?
Crypt trading is not fundamentally different from another type of trading - buy cheaper, sell more expensive (crypt trading strategies). The main specifics of the crypt market in sharp price fluctuations are cryptov currencies in short periods of time. If the strategy is built correctly, such dynamics can provide greater profit (learning to trade in cryptov currencies). But chances are also high to get large losses. Another peculiarity of the crypt market is that it is almost unpredictably strongly influenced by various events, which immediately affect the price. All factors influencing the crypt currency are unknown, so sometimes the price of the crypt currency changes unexpectedly. The strong dependence of the prices of all cryptovalues on the Bitcoin price dynamics is another feature of the crypt market. Bitcoin has a market share of about 50%, which ensures its influence. Trading in cryptovolves is carried out on specialized platforms - cryptor exchange. But it is possible to buy or sell cryptov currencies through exchangers, which are not connected with cryptor exchange markets.
How to buy cryptovalut?
Cryptovalut can be bought at a Crypto Exchange, but not all of them have the opportunity to buy coins with fiat money. Then the account at the crypt exchange is replenished with the crypt currency, which is bought in some other way. For example, you can buy cryptocurrency through an exchanger. The list of exchangers can be specified on the BestChange site. On this site, you can choose an exchanger by reviews, manually or automatically buy the crypt currency, at the rate to the fiat currency, by the number of confirmations. Exchange transactions between the Fiat and the Crypt Currency are delayed because it takes time to confirm the Crypt Currency transaction. You can use LocalBitcoins website directly to buy bitcoin . Here you can select the crypt-currency at a suitable price. Exchange operations on this resource are supported by private market participants, you can agree to buy at a personal meeting.
You can buy cryptovalut in services in Telegram, but here you can find more fraudulent exchange services, you need to carefully study bots-exchangers. The messenger has a high degree of anonymity, including for fraudsters. In order to buy cryptov currencies directly at the crypt exchange, you need to transfer funds to your account. The list of payment systems from which you can deposit money into your account is specified in your user account. It is necessary to take into account the commissions, which are charged when crediting money.
When buying cryptographic currency by any means, you need to be careful. The encryption industry attracts many scammers and there are many ways to lure out users. They can create fake exchangers, offer very advantageous "exchange" conditions, offer fake addresses to credit the crypt currency, and so on. You should also keep in mind that services related to cryptographic software do not always work reliably. For example, they are under enormous strain during periods of rising coin prices, then the transaction time increases - and this is the smallest problem that can be.
On which exchange to trade in cryptov currencies?
Crypto exchange is an internet platform for trading cryptov currencies. You have to register at a crypt exchange. It is not always a simple and fast process, cryptorages now require full verification of personal data and residence. It is easy to register on other exchanges, but in order to get access to full functionality you need to pass full identity verification. Crypto exchanges are as complex as banks in terms of verification. After registration, the user gets an account, the ability to transfer cryptov currencies, fiat money, exchange and withdraw money to third-party payment systems. Coins are credited without commission, but when crediting fiat money there is a commission, each exchange has its own, but on average from 1% to 5%.
When trading, the user places a sell or buy order, if the price is appropriate, then the transaction is made - profitable or unprofitable. This is how trading starts. If the trades are profitable, the client can leave the money on his account or withdraw it. Withdrawal is often possible not immediately, but when a certain amount is accumulated. Most traders do not keep large amounts of money in their cryptoberies accounts, as exchanges are subject to hacker attacks. Also, exchangers can freeze clients' accounts under dubious pretexts, money may disappear from their accounts, and their return will be a real problem.
- That's why you have to be careful when choosing a cryptobirge. You can find a suitable cryptographic exchange by focusing on the rating, which is very much on the Internet. Features of the exchange and the "pitfalls" can be found out on the traders' forums, as well as from user feedback. This is an important point, because it is necessary to avoid fraudulent or unreliable exchangers, but also because the exchanges are different, and you need to choose the appropriate one in terms of functionality.
When choosing a crypto exchange, you need to pay attention to a number of parameters:
- The language on which the exchanger operates;
- In which countries the exchange is operating;
- Complexity of registration and verification;
- Security measures (user feedback is more important here);
- Choice of cryptology: what are the coins on the exchanger, whether there are internal tokens (coins that are issued by the exchanger itself);
- What are the commissions, on what operations, what are the size of commissions;
- Does the exchange work with Fiat;
- What are the options for depositing and withdrawing money;
- Possibilities of trading functionality (instruments of technical analysis);
- Whether the demo mode (for trading training and strategy development);
- Support service activity.
When working at a crypt exchange, you should bear in mind that the legal status of platforms is not defined in most countries. At the same time, it is possible to conduct trading operations on many exchanges while remaining anonymous.