Get to know the place of trade, i.e. where to trade cryptocurrencies
The place to trade cryptocurrency depends on the chosen token and investment strategy. In the long term, it is recommended to trade through an on-line cryptocurrency exchange office, and day trading amateurs will find their place on the cryptocurrency exchange. So what are the features of individual cryptocurrency trading sites and what rules should be followed when investing in virtual coins? We’ll take a closer look at these issues below.
Cryptocurrency trading 101
As with most investments, there are some basic rules that govern cryptocurrency trading. If you want to start investing in e-coins and succeed in it, you should first learn to analyse the charts and pay attention to trend indicators such as the rolling average. The basic element of chart analysis is technical analysis, i.e. the ability to predict the rate based on a chart of historical cryptocurrency prices. The second one is a fundamental analysis, which is the study of how political and economic events as well as legal changes affect the rates of e-coins.
Another important rule is the ability to choose a promising cryptocurrency. In this case, before buying an asset, you should pay attention to several things:
Investor’s influence on the coin ecosystem. Having a specific token, the trader usually gets a number of rights regarding its development. For example, owning a DAO coin, you have the right to vote in the DAO, which allows you to decide which projects will get funding and which will not. Therefore, before buying e-currency, you should check the possibilities it brings;
A modern cryptocurrency should be useful and present practical value, because in this way it increases an interest in it;
Buy only those coins that present a potential of profit in time;
Profit sharing. If a trader decides to buy an ICO, they should ensure that as an investor they will be contributing to the fair share of profits or other related financial benefits in the project.
The stop loss tool is also a very important element. To become a good trader, you must learn to not only make profit, but also to minimize your losses. Hence, using a stop loss tool is reasonable as it automatically sells the cryptocurrency if its price drops by a certain percentage.
The basic principle, though, is continuous learning. Financial tools and charts change over time, so it is good to follow the current discussions of specialists. Daily posts or webinars discussing the current cryptocurrency market situation, including speculation and changes, can be useful. There are also many on-line courses or meetings for beginner investors.
What to trade, i.e. the best cryptocurrencies
Which cryptocurrencies are worth trading in 2020? Although the choice is difficult, there are contenders for the title of the best cryptocurrency of the year.
Lisk (LSK) –– a blockchain application platform, founded in early 2016 by Max Kordek and Oliver Beddows. Being based on its own blockchain network and an LSK token, Lisk enables developers to create, distribute and manage decentralized blockchain applications by implementing their own side chain connected to the Lisk network. Due to the flexibility of the side chains, developers can completely deploy and customize their blockchain applications. For several years now, Lisk has been gradually increasing its capitalization, and with it, its value for investors.
TRON (TRX) –– a TRON currency was created in 2017 by Justin Sun, a Chinese engineer. It aimed to create a global entertainment network resistant to censorship and government influence. In the future, TRON may create an alternative platform to the Chinese government censored Internet, making it a highly anticipated investment in the Far East.
Dash –– a cryptocurrency distinguished by the Instant Send function, which immediately and safely blocks funds from being processed by the blockchain. For this reason, Dash is one of the few cryptocurrencies that could replace payment cards. This functionality was obtained by introducing the so-called masternodes to the web. The blockchain itself is based on Proof of Work and the X11 hash function, for which ASIC miners exist.
Bitcoin Cash (BCH) –– the currency created after the breakdown of the main Bitcoin chain. It uses exactly the same algorithm as the original Bitcoin and –– similarly to Bitcoin –– it is based on a blockchain system. However, it differs from the original in the size of the blocks, which is aimed at minimizing transaction costs and accelerating the flow of funds. Pay attention to this cryptocurrency as it’s a more practical version of the old Bitcoin.
Ripple (XRP) –– this cryptocurrency is based on a real-time settlement system of the same name and used mainly by banks and large financial institutions. With it, you can make flexible and immediate transactions with a huge number of tokens.
You can purchase all the aforementioned cryptocurrencies in the Crypto-ATM on-line exchange office. In the cryptocurrency exchange office, interested parties will find a wide selection of e-coins at a fixed rate to buy in a quick and smooth manner.
Place of trade or where to trade cryptocurrencies?
There are several places where you can buy cryptocurrency, e.g. cryptocurrency exchange offices and cryptocurrency exchanges. There is also an option to trade cryptocurrencies purchased with a cryptocurrency ATM. These are devices similar to ordinary ATMs, where you can buy cryptocurrency units for cash. However, they charge a large margin, and are located only in large cities.
You can also buy cryptocurrency in an on-line cryptocurrency exchange office. Such exchange office supports local fiat currency, offers an electronic money transfer, the possibility of keeping bank accounts in several countries and payment by card or transfer.
How to choose the right place to trade cryptocurrencies?
A choice between a cryptocurrency exchange or an exchange office should be based on your expectations in terms of an independent cryptocurrency trading. An investor may be interested in a site that supports certain altcoins, or has additional features such as deposit trading or allowing to withdraw funds to a Revolut account.
Other important factors that you should pay attention to include…
Security: it is by far the most important factor when choosing an exchange or exchange office. To ensure an adequate level of security, the website address should start with HTTPS, and two-factor authentication should be used to log in. Also, pay attention to how the money is stored and whether it is possible to add your IP or payout address to the platform’s white list.
Exchange office reviews and contact with the client: on the Internet you can reviews of every significant on-line exchange office. Reviews published on industry portals and in opinion aggregators are especially important. You should also pay attention to the possibility of contacting the portal administrator. A good on-line exchange office should provide contact information such as address, or have a separate Contact Us page. Therefore, you should never use the services of a portal that hides such information or does not answer questions asked by e-mail.
Fees: sum up all fees charged for trading cryptocurrency as some exchange offices offer disproportionately high withdrawal bills for specific altcoins. Check deposit fees as well. Sometimes, the platform offers a quick and convenient way to buy cryptocurrencies with a credit or debit card, but charges extra for it.
So it turns out that trading cryptocurrencies in an exchange office is much simpler than on the exchange as you only need to select a specific currency pair and then enter the amount of the exchange. Upon approval of the payment, the cryptocurrency will be transferred to the selected wallet address. Compared to the exchange, exchange offices are recommended to people who value anonymity and fast service.