One can’t deny the very fact that cryptocurrency trading has been around for quite some time but with the advancement of the crypto trading norms, its time for you to step up the game and move forward with the most accurate and advanced trading charts. We, at Blockchain Tradein have the most advanced trading methods for you and we are looking forward to improving on a constant basis. But, before you get to know about our advanced trading methods, we would like to enlighten you on everything you need to know about crypto trading.
There are a lot of things that you need to know about cryptocurrency trading before deciding to invest in it. Here are a few noteworthy stuff.
Cryptocurrencies are volatile
The value of cryptocurrencies goes through extreme fluctuations. In 2017, the value of Bitcoin swung between $900 and $20,000. The price changes with the blink of an eye. During the COVID-19 pandemic it went to a super low value of less than $5000. Investing in cryptocurrency is dangerous, to say the least. Naturally , all investing has a diploma of risk. However, you should always avoid unnecessary risks, specially when considering your hard-earned money. Stay safe and grounded with your money.
There are a lot of unknowns
There’s still a great deal that needs to be ironed out with how cryptocurrencies work. You need to think over and over again to understand as to how it works. No one even knows who the founder of Bitcoin is. They say it’s Satoshi Nakamoto who has remained anonymous so far. Relatively speaking, only a tiny percentage of folks in the world understand the system and know how to operate it. Lack of knowledge makes you vulnerable. I actually always advise people that if you can’t explain your investments to a 10-year-old, you have no business investing in them to begin with. You’re establishing yourself up to take action stupid.
Cryptocurrencies can be used for fraudulent activity
People who want to continue to be anonymous and steer clear of rules from banks or the government will use cryptocurrencies to make shady deals on the black market. Money laundering is yet a problem in the crypto world. Today hear me on this: I’m not saying that everyone who uses cryptocurrency is a bad person. But I am saying that company wants to commit criminal activity and prevent being monitored, the crypto world is an excellent place for them.
Cryptocurrencies provide an unproven rate of return
Buying and selling in cryptocurrency is like gambling. Since it’s exchanged expert to peer without any tie to regulating standards, there’s no pattern to the rise and drop of its value. You can not predict changes or calculate results as if you can with growth stock mutual funds. There just isn’t enough data, or enough reliability, to create a long-term trading plan in order to reap constant profits from crypto trading.
How to choose the right crypto platform?
Getting the correct platform for you is very important. There are differences across competing exchanges, and as such, it is useful to do some research to determine which is best for your preferences. Below is a short set of some of the main element things to look out there for:
Available values: As mentioned above, BTC to USD frequently occurs, but other trade pairings might be accessible on one platform and not another. Be sure that the crypto you want to trade with is backed by the government and the financial regulatory body of that country.
Leverage: This refers to the amount you are permitted to trade above your initial down payment and by how much you can multiply your gains. Higher leverage will suit chance takers who look for the high reward. To be specific, high leverage is not advised for beginner crypto traders. Leverage is typically 20: 1 with major crypto platforms. Again, though, this is reliant on your chosen program.
Hedging: Hedging is a risk lowering tactic that typically involves taking an offsetting position on your primary asset. This provides insurance and reduces the likelihood of a loss. Make sure that the crypto platform offers this service.
Minimum investment: This specific appertains to the minimum amount you can deposit and invest with. This is important as different platforms will require different minimum purchases. Choose the one which suits your budget.
Customer service: You’ll want to know your queries, big or small, can be answered. Choose an exchange that has a large support team. We at Blockchain TradeIn have the best support team.
Instant liquidity: The longer waiting around for your buy order to be fulfilled, the higher the chance that the value will drop due to the unpredictability of the mark. Hence, make sure that the platform has got the right liquidity otherwise you might suffer.
We, at Blockchain Tradein check all the above boxes and that is why you can safely indulge in all the best trading practices with us. And why wait, with constant client monitoring, proper trading approach and a 100% joining bonus that you will be receiving, you can be assured that once you join us, you would no longer want to ever leave.