You know what? Trading Cryptocurrency for Beginners is no more ‘impossible’. In this article, we will discuss everything you need to know to begin trading Cryptocurrencies.
What is a Cryptocurrency?
Cryptocurrency is a sort of digital or virtual currency that is designed to work as a gateway of exchange. Cryptocurrency was created using ‘encryption’ systems to control its supply and secure every transaction between parties by hiding their identities. No central bank or government or monetary boards control it. Because of its ‘encryption’ technology, this digital currency is named as ‘Crypto’ currency. These are what make this digital currency so innovative when compared to standard types of currencies such as USD or EUR.
Cryptocurrencies Vs. Standard Currencies
Knowing the differences of between cryptocurrencies and standard currencies your journey on trading cryptocurrency for beginners can be very easy and flexible.
Cryptocurrencies are Digital
Unlike standard currencies printed as notes or coins, which you may carry around in your pocket, Cryptocurrencies are available in the digital figure only. You can buy the Cryptocurrencies, transfer them, make a transaction using them, and can even withdraw them from ATM.
As I mentioned earlier, a major characteristic of Cryptocurrencies is their cryptography technology. Stimulated from WW2, cryptography technology secures all transactions between parties and controls its supply. This could be another great reason for trading cryptocurrency for beginners.
Possibly one of the most exclusive features of Cryptocurrencies is the fact that transaction happens purely peer to peer basis. There’s no need for any third party organization like Bank to perform any transaction between two parties. Considering this, it’s less costly to send money to anyone. Other than these, since no monetary boards control this, your identity is always safe and secure whenever you make any transaction using cryptocurrency.
Why trade Cryptocurrencies?
- Due to their high volatility and rapid price movements, Cryptocurrencies offer a great potential opportunity for investment and speculation.
- The value of Bitcoin increased over 370% from the beginning of 2017.
- Because of their fast price movements, Bitcoin, Ethereum, or Litecoin are ideally known for potentially high returns on investment.
- IMMFX is pleased to be offering a FREE trial of the popular MT4 platform for trading cryptocurrency for beginners.
- Trade the financial markets in just minutes
- A choice from a variety of CFD instruments: Stock Market Indices and Energies.
- Have 3 markets on 1 platform. Trade CFDs, Forex, Indices, and Metals & Energy on the same Trading Platform.
- IMMFX guarantees low-cost and low-margin trading.
- 24 hours a day, 5 days a week, giving you the opportunity to open and close positions flexibly.
How to trade Cryptocurrencies?
So you’ve learned some basics about cryptocurrency trading and now you’re all set to trade, right? Now the real question is, how exactly you trade cryptocurrency?
Let’s know in detail…
Learn the Basics
Before you jump on real trading, you need to know the basics of blockchain technology and cryptocurrency. Of course, you don’t need to be master of it. However, basics knowledge is enough to move on further for trading cryptocurrency for beginners.
Learn the top currencies
So many “altcoins” are developing and adding to the list of digital currencies to trading cryptocurrency for beginners. There are more than 100 kinds of Cryptocurrencies whose value is more than $1 USD, according to CoinMarketCap. Bitcoin, Litecoin, and Ethereum are obviously the top 3 most popular and reliable digital currencies that you can choose to trade now.
Understand the risks
This market is highly volatile. Like other standard trading markets, your money is at risk with Cryptocurrencies trading too. Trading cryptocurrency for beginners might only be profitable if you how much you can afford to invest here and manage funds very properly.
Read our next article on Cryptocurrency Trading for Beginners to learn more about it.