So, if you have thought of developing a cryptocurrency trading career, then you have to first learn how to start trading. Though cryptocurrency is an amazing market for traders but it is as simple as it sounds. Yes, crypto trading is a risky business. But, on the other hand, people who know how to trade smartly have made millions.
However, before you begin with your cryptocurrency trading, you need to some of the major points of trading.
When people trade in cryptocurrencies, they use a cryptocurrency exchange. It is a place where buyers and sellers match. For instance, if you want to sell BTC and buy ETH, then there has to be someone who wants to buy BTC and sell ETH at the desired price.
Brokers such as Duxa Capital charge a small fee for every trade. And billions of dollars of coins are being traded on a daily basis. A lot of people gain while others lose. Thus, you have to be a pro to pick the right coin at the right time and price to make whopping profits.
You got to start somewhere. So, here is it:
Short term trading: It is when you purchase a digital currency and hold it for a short time period. This includes a few minutes, hours, days or weeks. It is like expecting the price of the coin to rise in a short term and then selling it for a quick profit. It has its own benefits:
- It offers a great chance to make huge percentage gains. Unlike fiat market, where the prices don’t move more than 1% every day cryptocurrency can double your amount overnight.
- You have over 1500 cryptocurrencies to trade in which means you have large trading volumes.
Some of the disadvantages of short-term cryptocurrency trading are:
- As the market is highly volatile, prices change very fast. So, if you are going for short-term cryptocurrency trading, you need to analyze the market first.
- It is very important to control your emotions
- It can be very stressful to trade in a short time frame.
- In short term trading, you should invest large to gain a lot from little price movements.
Long term trading: Long term crypto trading means that you buy and hold the coin for over a year. Though the market will always be volatile, but the price will increase to a wider range over the long period. For instance, BTC was $0.35 in 2011 and it rose to $20000 in 2017. So, your initial investment rose to 57000 times. Some of the benefits of long term cryptocurrency trading are:
- It is simple and doesn’t require studying complex charts or graphs.
- Unlike short term trading, you don’t have to keep checking the price of the coins.
- You don’t need a lot of money for investment
Some of the disadvantages of long-term cryptocurrency trading are:
- You miss making short term gains.
- Sometimes the coin rises and falls back.
How to commence trading?
If you are looking forward to go for cryptocurrency trading, then you just have to swap coins with USD. Just make an account through services like Duxa Capital and buy Bitcoin with your debit or credit card on a reliable exchange. Then sell it when at a good rate to make handsome profits.