Trading Cryptocurrencies can be a daunting task, especially if you’re new to the market. However, trading Cryptocurrencies is easier than you think. Cryptocurrencies are an interesting investment opportunity and trading them is also fairly easy. You don’t need to be an expert to start investing in them or even trading them. All you need is a little bit of cash and the right software.
Creating an account with any Cryptocurrency exchange can also be a hassle as most require several pieces of information that might seem unnecessary but can prove challenging for some. Luckily, there are many alternatives to traditional exchanges that make trading Cryptocurrencies easier than ever before. Read on to know what top reasons you should start trading Bitcoin:
Easy to understand
The easiest way to understand the concept of trading Cryptocurrencies is by actually trading them. Crypto exchanges are easily navigable online and can be used with a computer or a smartphone. Regardless of whether you’re trading Bitcoin or Ethereum, the trading process is similar. You can also learn how to day trade Cryptocurrencies, which makes it even easier. You can learn about the trading strategies, how to choose the right pairs, and which exchanges to use. There are many Cryptocurrency trading guides available online, and you can also attend Cryptocurrency trading 101 courses.
You Can Set Your Exchanges
If you want to trade Cryptocurrencies but are overwhelmed by the idea of setting your exchange, then you can opt for a hosted one. It’s easier to set up an exchange hosted by an established firm like Immediate Edge, or an established Cryptocurrency broker like eToro. Even if you’re not tech-savvy, hosting an exchange is fairly easy and there are plenty of guides online to help you set everything up. Unlike the centralized exchanges where you don’t have control over the funds, you can set up your exchange and store your Cryptocurrencies. You can also host your Cryptocurrency exchange, but this is not recommended for beginners as it’s more complicated than hosted exchanges.
Security is a core feature of Bitcoin trading
Another reason you should start trading Bitcoin is because of its strong security features. When you send Bitcoin or trade with any other digital asset, you need to digitally sign off on the transaction. This is like committing a piece of paper with your signature and a unique digital signature. You can also store your private keys in a hardware wallet like the Ledger Nano S. This provides extreme security as hackers can’t access the digital signature without the physical device.
You can also trade on regulated Cryptocurrency exchanges that follow strict security guidelines. Some security features are unique to Bitcoin. Bitcoin addresses are 32 characters long and can only be used once. This prevents funds from being stolen as funds that are sent to the same address can’t be rerouted to another account.
There Are Hundreds of Options to Trade Bitcoin
The number of trading options to trade Cryptocurrencies is staggering. You can trade Cryptocurrencies with other assets, such as stocks and Forex. You can also trade Cryptocurrencies against government-backed currencies like the US dollar. This is known as hedging or speculating on prices. There are also blockchain assets, such as Bitcoin futures that allow you to trade Bitcoin against other assets like commodities and stocks. There are hundreds of Cryptocurrency trading bots that can make trading simpler and even automate the entire trading process. There are many platforms where users can connect trading bots to execute trades automatically.
It’s Volatile and Returns Are Meaningful
Cryptocurrencies are deemed as very risky investments and can make huge returns as well as huge losses. This makes them a highly volatile investment option. Just like any other investment, the purchase price of a Cryptocurrency is usually fairly low and the price can rise quickly. However, it can also fall quickly. Bitcoin, for example, is considered the father of Cryptocurrencies and was first introduced in 2009.
It is also the first Cryptocurrency to be traded. Its price was $1 per unit at the beginning and rose to $19,511 in December 2017 (as of January 8, 2018). However, it is also a highly volatile investment option and can drop as low as $3,000 in February 2018. You should always consider the risks and benefits of investing in highly volatile investment options before you decide to start trading them.
Conclusion
The best part about trading Cryptocurrencies is that you can easily do it from your home with a computer or a smartphone. This makes trading Cryptocurrencies accessible to anyone with any level of experience. These days, many new Cryptocurrency trading platforms make it simple to set up an account and start trading. They’re also very user-friendly and safe to use. The trading process is also pretty simple and you can get started as soon as you have the right amount of cash. Trading Cryptocurrencies can be extremely profitable. The only risk is the risk of losing all the money you invest. But if you follow the tips in this guide, you should be able to safely and successfully trade Cryptocurrencies.