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So you want to start trading, or you want to further enhance your trading habits. This page is dedicated to you. Crypto exchanges are central to the activity of trading. Hence, to up your game in trading, traders must have a solid foundation and comprehensive knowledge of the market by knowing which coin is beneficial to trade and in tweaking popular exchanges (for example, consider learning how to use Binance).
The crypto market and industry of trade have always been popular since the dawn of modern technology and digital currency. However, this period marks a great zenith for crypto exchanges as the market is capped at $265.545 Billion, as the global blockchain market is foreseen to spike to $23.3 billion by 2023. There is no better time to start trading than today!
Defining Cryptocurrencies, Crypto Exchanges, and Trade
One of the most common rookie mistakes is interchanging the definition of these crucial terms. Knowing the definitions and proper usage of each is the very first step in getting along with the market.
In simple terms, cryptocurrencies can be thought of as “digital money.” It is then formally defined as a digital currency by which transactions are processed by an encompassing decentralized system such as the cloud. They differ from physical banks, given that the latter operates in a centralized system. Popular cryptocurrencies today are Bitcoin (BTC), Bitcoin Cash (BCH), etc.
Crypto Trade is the process of buying or selling cryptos. This is made possible by crypto exchanges or trading platforms that facilitate such transactions.
Guide in Trading and Crypto Exchanges
Giving that trading is the act of selling or buying cryptocurrencies, you must know first which coin you would want to invest in and how trading operates.
Evaluate the level of risk that you are willing to take. Every investment has risks, but smart traders know how to minimize them and troubleshoot possible losses ahead of time.
BTC is considered one of the most stable coins to trade since it is one of the most common and oldest currencies in the market. Also, because of its price at a maximum of $20,000.
Other coins than BTC are referred to as altcoins such as ETH, LTC, and XRP. These are also relatively stable cryptos.
Study the Market
Do independent research about the market and select the coin that matches your financial needs, goals, especially capability. Trading charts can come in handy to view the market activity and monitor crypto prices.
Transact Through the Right Crypto Exchange
After establishing the coin you want to trade in, it is just as important to carefully assess which trading platform offers the services and guarantees quality in processing your transactions.
Considerations in Choosing Crypto Exchange
Watch out for these important factors and qualifications when selecting a crypto exchange:
The crypto market can be a scary place in the sense that no central authority is going to save you from criminal market activities like fraud and theft. Hence, the first and foremost aspect you should look into a crypto exchange is a record-clean reputation.
A way to do this is by typing the name of the exchange in search engines like Google, followed by the word “scam” to look for articles that might have already exposed the platform. You may also look into customer feedback and word of mouth.
You must also ensure that the exchange you are going to use is tightly secured. Commendable platforms require Two-Factor Authentication to add a layer of security to your account.
3. Variety in Supported Fiat and Crypto Currencies
It is more convenient and manageable to trade using a single platform. Thus, make sure that the exchange supports a wide range of both fiat and crypto currencies so that the transactions you will make will not be scarcely limited.
These are simply some of the common considerations when choosing a crypto exchange. We have a review of some of the most well-known trading platforms in the market today. This can serve as a helpful reference when you are seeking the best crypto exchange for you.
Why You Should Trade Today
Is trading crypto worth your time, assets, and risks? The answer is definitely.
- High liquidity – Liquidity refers to the ease in converting crypto to fiat without diminishing market price. There is great liquidity in the market resulting in profitable pricing, speedy transactions, and precise market analysis.
- Potential for large gains – Most view market volatility as no more than a threat. But this can also make crypto a great avenue to trade in, as it has the potential to generate immensely larger gains so long as your judgment is on point.
- The rise of the crypto market – Crypto is seen as the future of trade, investments, and currency.