Cryptocurrency Trading Platform - Ethereum, Tron, Bitcoin Trade
Cryptocurrency trading is on the rise. It consists of buying, selling or trading virtual money in order to make a profit in the shortest possible time. It is an alternative that attracts a lot of investors because it is particularly profitable. Its market value recently reached $ 100 billion.
If the operation seems interesting, its success depends on a number of conditions. One of them, for example, is determining the right time to buy and when to sell. And the other, arguably the most important, is to choose the broker that will allow you to trade successfully.
Find out everything you need to know about cryptocurrency trading.
What is cryptocurrency?
Cryptomoney, as the name suggests, is a unit of currency obtained from the encryption of data. They are used through a peer-to-peer payment system. Created using Blokchain technology, they take the form of a series of numbers stored in chains and arranged in blocks.
Cryptocurrencies have no physical medium, unlike cash, which can be in the form of coins or notes. Nor do they have any currency or legal tender anywhere in the world. Finally, they are not linked to any financial institution.
They do, however, have a real financial value. Offering as much security and confidentiality as an account attached to a bank, they can be used to make transactions. And just like traditional money, they can be traded, bought or exchanged.
This property of cryptocurrency explains why many users are so fond of it. It offers those who hold them the opportunity to become "their own bank". As money is decentralised, there are no more intermediaries. There is therefore no longer any risk of refusal or cancellation of a transaction, no more blocked funds. And transactions take place directly between the seller and the buyer.
Cryptocurrency trading: what you need to know before getting started
More and more traders are interested in crypto trading. The value of digital currencies increases with their popularity. Their market value is currently estimated at 100 billion dollars, and this figure is likely to increase further. Those who say that this is a particularly efficient and profitable investment vehicle are therefore quite right. But you should know this: registering on a trading platform is not enough to benefit from it.
Cryptocurrency trading: how does it work?
Digital currencies are decentralised. Transactions are made via an online crypto-currency trading platform. Once completed, the currencies are kept in virtual portfolios known as "wallets".
Therefore, if a person wants to buy or trade crypto-money, they must first have this wallet. This is where the seller will send the digital coins.
Cryptocurrency trading: what does it consist of?
When we talk about trading, we automatically think of an investment. But in reality, there are two ways to trade virtual currencies:
- CFD trading
The CFD is used to trade the current value of cryptocurrencies. Concretely, it is an agreement between "the seller" and "the buyer". It states that if the current value of the cryptocurrency were to increase on a particular date, the seller will have to pay the difference to the buyer. And if not, that the buyer will have to pay the difference to the seller if the value falls.
This negotiation can therefore be done without even having virtual currencies. If the trader believes the value will rise, he can position himself to buy. If he thinks it will decrease, he can position himself for sale. In both cases, if his forecasts were correct, he will win the difference and come out "winning".
- Buying and Selling Cryptocurrencies
You can sell, buy or exchange crypto-money, but only through the exchange platforms. You will need to create an account on them and make a deposit to be able to buy them. The minimum value of the investment will depend mainly on the broker you choose. You will then be able to keep them in your wallet while waiting to exchange them or resell them in your turn.
How to buy cryptocurrency? How to trade cryptocurrency?
Here are the steps to follow to get started in crypto trading.
Step 1: Choose the best online cryptocurrency trading platform
You will have no difficulty finding trading platforms. There are so many in reality that you will be spoiled for choice. Note this though: they all work in much the same way, but each has their own unique set of tools, features, options, fees and commissions. It is also possible that they do not use the same technology. This is why it is essential to take the time to learn about each one and to choose the best one. But above all, it is essential that you choose the one that suits you best.
When looking for a broker, here are the basic parameters that you will need to consider:
- Years of existence and experience
- BTC / USD quotes
- Deposit / withdrawal conditions
- The minimum investment
- The different options such as leverage
- Tools and analyzes on crypto trading made available to users
To make the right choice, here are also some additional criteria to consider :
- Always opt for platforms offering training or a free training account for new registrants ;
- Always opt for easy to use platforms and preferably social trading sites if you are a beginner;
- Take a look at the fees and commissions applied (first deposit, withdrawal fees, inactivity fees, etc.).
Step 2: Make a technical analysis
Before you start, take the time to do a technical analysis. It is a method that traders use to learn more about the market and to determine, from indicators, what the trends are. This allows them, subsequently, to anticipate the prices and movements of virtual currencies. But also to invest in buying or selling knowingly.
Some cryptocurrency trading platforms can provide you with all the tools and market research you need for this analysis. Some for free, and others for a subscription to a Premium account. In any case, technical analysis is essential, because it will also allow you to define the goal you want to achieve; and the limit that you do not want to exceed so as not to take too many risks.
Step 3: Respect certain rules
The first is to never go for it with your eyes closed. Don't start trading until you have done enough research, know how it works, and learn the laws that govern the crypto trading market. Don't hesitate to use a beginner's account for this, and draw inspiration from the feats of experienced traders. This will save you unpleasant surprises and great disappointment.
The second is to remember that this is a speculative market and subject to frequent change. Before investing, try to anticipate your potential gains and potential losses. Limit your investments to the losses you can afford.
The third is to take the time to follow the movements of the market. Constantly follow the news because every movement, every change can change the current value of crypto currencies.
Cryptocurrency trading: which virtual currency to invest in?
There are several thousand cryptocurrencies in the world. It is difficult to give an exact figure, there are so many of them. But according to specialists, it is between 2000 to 5000 according to the latest news.
You can trade most of them. But beware, some have more values than others. Here is a list of the most popular cryptocurrencies that have significant market capitalization in the market: :
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Ripple (XRP)
- Ethereum Classic (ETC)
- Dash (DASH)
- Eos (EOS)
- Litecoin (LTC)
- Stellar (XLM)
- TRON (TRX)
How to trade Bitcoin?
Bitcoin was launched in 2009 by a certain Satoshi Nakamoto. It has become - in about ten years - the main and most important crypto-money of the market capitalization. It is not only the first and best known, it is also the one that dominates the market with an estimated value of more than 120 billion dollars in 2019. And its popularity continues to grow.
Depending on the exchange platform you choose, you will be able to buy Bitcoins via Paypal or by credit card.
How to buy or trade Ethereum cryptocurrency?
Ethereum is a fairly new cryptocurrency. It was released to the market by programmer Vitalik Buterin in 2013. But it's been done so well that it enjoys - to this day - worldwide popularity. And for good reason ? In just a few short years, it has become Bitcoin's main competitor. It is the second virtual currency with the largest market capitalization. It gains the status of the most trusted altcoin.
The secret of its success? Ethereum compensated for the weaknesses observed in Bitcoin, in particular with regard to the script. In addition to that, it has several strengths: an excellent network that has been able to integrate DApps (decentralized applications), a course that defies predictions and is constantly evolving (1,400 USD in 2018), support for smart contracts , and support from tech giants such as Microsoft and Intel.
Also note that you can trade Ethereum and Ethereum Classic. The latter is the "hard fork" version of the original. It uses the same system, but has kept the old blockchain - the one that is unalterable. Its market capitalization is, therefore, less important than that of its predecessor.
You can buy Ethereum cryptocurrency using your credit card or paying from your Paypal account. If you have bitcoins, some platforms allow you to exchange them for Ethereums.
TRONIX (TRX) trading on a cryptocurrency trading platform
Tronix (TRX) is also a very recent cryptocurrency. It was started by Justin Sun - director of the TRON Foundation - in 2017. Raising over $ 70 million at the time, Tronix or TRX quickly became one of the most popular altcoins. It is often criticized for adopting very aggressive marketing, but despite this, it is still considered to be Ethereum's main competitor. Like the latter in fact, it has a quality network. It also integrated DApps.
On the exchange platforms, you have the option of buying it in two ways: as a CFD or in its real form (true TRON).
With the first option, you make a secure investment, you don't have to have a digital wallet, you have deposit insurance on what you had invested and you usually have the option of using the effect. leverage. In the second case, you will be able to own real crypto-currencies that you can store in your wallet, you benefit from a reduction in fees in the long term, you are normally exempt from additional fees and you enjoy total autonomy vis-à-vis -to stock exchanges and brokers.
To purchase TRON, you can use your credit or debit card. Depending on the location, you can also make the payment via your Paypal account. Some brokers also accept bank transfers. Before choosing this solution, however, take the time to find out about the fees, especially if it is an international transfer. Because they could be particularly high.
Note otherwise that it is also possible to exchange cryptocurrencies to get TRON. If you have Bitcoin or Ethereum, you can use them to trade.
Good to know: trading crypto-currencies is common among some online brokers. It is a fast and convenient payment solution. It is also more economical, as it is the only option that does not incur additional costs. So remember to find out if this is possible on the platform on which you plan to register before definitively making your choice.
Buying and trading cryptocurrency on IQ Option: the advantages
IQ Option is among the best crypto trading platforms. Established in 2013, it quickly became one of the world's most popular online brokers. To date, it has nearly 50 users and allows trading in several cryptocurrencies. It is even a kind of benchmark in the matter.
Why ? You should know that buying and trading cryptocurrency is not possible on all brokerage platforms. IQ Option, however, offers particularly interesting crypto trading possibilities:
- A unique platform Open Trading Network (OTN)
- A minimum deposit of only $10
- A minimum investment of $1
- Immediate withdrawals
- Adjustable leverage
IQ Option has also won numerous awards including Global Brands Magazine's "Best FX Broke Europe 2018" and "Best Forex Execution Broker 2017".
Cryptocurrency trading: where to start?
Want to try your luck? You want to trade digital currencies? IQ Option may be the best platform to get you started. It brings together all the favourable trading conditions for all traders, whatever their experience: beginner or experienced. In addition to a user-friendly interface and highly advanced features, IQ Option provides its users with video training that will enable them to quickly understand and master the tool's operation so that they can start trading.