What is Cryptocurrencies Trading?

Cryptocurrencies trading is similar to other types of trading, in the sense that you look to make a profit from buying and selling at the right price and at the right time. However, it has the added edge of being a vibrant, modern option that offers interesting potential for forward-looking investors.

Different types of coins can be traded online these days. While the Bitcoin (BTC) currency is the best-known, other popular currencies to trade include the likes of Ethereum (ETH), Litecoin (LTC), Ripple (XRP) and Dash coin. You can buy these coins with fiat money or switch money from one cryptocurrency to another.


Crypto Trading Types

CFDs

One of the most popular crypto trading options is CFDs. This stands for Contract for Difference and means that you don’t actually buy coins. Instead, you speculate on the possible rise or fall that a currency could undergo, paying just a part of the overall cost of the purchase.

Given the fast-moving nature of cryptos, this type of investment can lead to fast, sudden swings. This makes it one of the most exciting ways of investing, with the possibility of big gains if the market goes in your favour.

CFDs also offer the advantage of being regulated. If you prefer the comfort of a licensed investment product, then this approach makes sense. If you want to invest in a CFD, the broker that stood out from the rest in our in-depth reviews was eToro. Read our eToro review to find out more or visit the eToro site to take a look around.

Exchanges

The best crypto trading platforms are online platforms where you can buy and sell Bitcoins and altcoins. This can be done by switching your cash from fiat or by moving from one digital currency to another. They work in different ways but generally charge a small fee for allowing you to buy the type of coin that you want.

Some of the best crypto trading platforms we’ve reviewed are: Coinbase exchange, Binance site and Changelly coin exchange.

Futures

Futures trading is a speculative type of investment. Basically, you have an agreement to buy something at a fixed price at a certain date in the future. If you engage in this type of cryptocurrencies trading, you’re basically looking to make a profit from big upward swings.


Cryptocurrency Trading Strategies

As you’d expect, cryptocurrencies trading comes in many forms. Depending on your bankroll, knowledge and preferences, you can utilise various cryptocurrency trading strategies to maximise your returns. To show you what we mean, here’s how to trade cryptocurrencies using two different investment strategies.

Technical Trading vs. Fundamental Trading

These are the two commonly used ways of working out what the future value of any stock or asset can reach. Fundamental analysis means looking at the real underlying value of the asset by taking all of the factors into account, such as the market it operates in and any major events that have affected it lately. On the other hand, technical analysis only really takes into account the volume and price of trading.

Which method is best when it comes to cryptocurrencies trading? Well, there is no right or wrong answer. However, fundamental trading is typically used for long-term investing strategies. Technical trading is commonly regarded as being more suitable for swift, short-term moves.

What is a technical chart?

A technical chart will give you a visual representation of a currency’s progress over a period of time. The information isn’t always shown in the same way but will generally include a clear picture of how the price has moved over that time.

What is a technical chart?

A technical chart will give you a visual representation of a currency’s progress over a period of time. The information isn’t always shown in the same way but will generally include a clear picture of how the price has moved over that time.

As you’d expect, cryptocurrencies trading comes in many forms. Depending on your bankroll, knowledge and preferences, you can utilise various cryptocurrency trading strategies to maximise your returns. To show you what we mean, here’s how to trade cryptocurrencies using two different investment strategies.

Technical Trading vs. Fundamental Trading

These are the two commonly used ways of working out what the future value of any stock or asset can reach. Fundamental analysis means looking at the real underlying value of the asset by taking all of the factors into account, such as the market it operates in and any major events that have affected it lately. On the other hand, technical analysis only really takes into account the volume and price of trading.

Which method is best when it comes to cryptocurrencies trading? Well, there is no right or wrong answer. However, fundamental trading is typically used for long-term investing strategies. Technical trading is commonly regarded as being more suitable for swift, short-term moves.

What is a technical chart?

A technical chart will give you a visual representation of a currency’s progress over a period of time. The information isn’t always shown in the same way but will generally include a clear picture of how the price has moved over that time.


How to pick a Crypto Trading Platform

There are a number of factors to take into consideration when picking a cryptocurrency trading platform. We have looked into all these and more to give you the most accurate reviews:

– Fees – One of the most important features in our reviews. Fees that are too high will eat into your profits.
– Currencies on offer – Not all crypto trading platforms have a full selection of coins. Some specialise in just one or two currencies.
– Liquidity – You don’t want to find that your platform doesn’t let you trade because of a lack of liquidity.
– Minimum investment –Most traders don’t want to be tied to a large minimum investment.

The Best Crypto Trading Platforms

Our Recommended Platform – eToro

For secure, regulated cryptocurrencies trading, we recommend eToro. If you check out our eToro review, you’ll see that it’s a social trading network that’s has been around since 2007, supporting cryptocurrency trading since 2017. It allows people from over a hundred countries to buy and sell virtual currencies safely and without any fuss.

A stringent identification and authentication process means that you can trade with confidence here. They were among the first exchanges to offers CFDs on Bitcoin and now offer even more options. With easy set-up for beginners, you can visit eToro to find a great place to look into crypto investing.


24option

Technically this isn’t an exchange. However, 24option is a crypto trading platform that offers enough flexibility for you to invest in Bitcoin and other currencies without actually owning them.

Binance

One of the three biggest exchanges on the planet, the Binance exchange offers fast and accurate trading. Getting started here is simple, and they have their own coin that you can use which makes cryptocurrencies trading even easier to do.

Bittrex

The US-based Bittrex crypto trading platform has been around for a few years and is highly regarded for the number of different currencies offered. They have a consistently high volume of trading and offer good liquidity levels.

How to Trade Cryptocurrencies Now

Want to know how to trade cryptocurrencies like a pro? Well, if you use eToro, cryptocurrencies trading is easy if you follow these steps:


– Fill in your basic personal details on the eToro home page to register


– You will then have access to a dashboard. You can deposit funds here


– You can start off with virtual money and then switch to real investments once you are comfortable doing so

– Real money trading is carried out in the same way:


– Real money trading is carried out in the same way


Consider setting a stop loss and take profits target

These functions allow you to close a position automatically once a certain price is reached. This is done by choosing your settings and clicking on the “trade” button.


Benefits & Risks of Cryptocurrency Trading

Just because you know how to trade cryptocurrencies, it doesn’t mean you should dive in with both feet. Like anything involving money and risk, there are positives and negatives to cryptocurrencies trading online…

Benefits

– Fast-moving markets can lead to big profits
– Round the clock trading not limited to stock exchange hours
– Many different types of currency available
– Growing public awareness of coins could lead to high growth rates
– Fast, effortless trading

Risks

– The average crypto trading platform isn’t regulated
– The risk of hacking
– A big price fluctuation could lead to you losing money

Top Tips to Start Crypto Trading

What points do I need to join the cryptocurrencies trading world and invest like a pro?

– Sufficient financial flexibility to trade money you can afford to risk
– A good understanding of how to trade cryptocurrencies
– An idea of the type of trading you want to try
– A specific cryptocurrency (or more than one) you are interested in
– A crypto trading platform where you feel comfortable
– Enough time to dedicate to this activity

Cryptocurrency Trading robots

Just because you know how to trade cryptocurrencies, it doesn’t mean you can’t take advice from someone or something else. Crypto trading robots are a useful tool you can add to your arsenal. This is an automated approach to cryptocurrency trading that allows bots with customisable strategies to work on your behalf. Among the bots you might be interested in finding out about are; Bitcoin Code, Bitcoin Loophole and Binbot Pro.

If you’re ready to start cryptocurrencies trading today, use our eToro sign-up link to get started. Alternatively, read our in-depth exchange reviews if you’d like to try out another service.