What is cryptocurrency? beginner's trading guide

 What is cryptocurrency? A beginner's guide to Bitcoin trading

Crypto for beginners 

Intense interest in cryptocurrency has many wondering, What is cryptocurrency? Cryptocurrency, like BitCoin and other digital currencies, are encrypted digital currencies that can be traded online or used to buy goods or services online. If you’re intrigued by the idea of trading BitCoin and other cryptocurrencies but don’t know where to start, this beginner’s guide to cryptocurrency will help you learn more about what it is and how you can use it to your advantage.

What is trading:

Trading

Trading currencies and commodities are all risky affairs. But, if you do it right, you can make money quickly and easily. To start off on your trade career, think about carefully determining which strategy is most likely to help you succeed. This will require evaluating your strengths and weaknesses as a trader in order to determine how to best work with or around them. If you’re going into currency or commodity trading without thinking about what type of trader you are—you’re at a disadvantage before you even begin. Consider: Are you an investor or a speculator? An arbitrageur or a hedger? Are there certain markets that will provide better opportunities for success than others?

The basics: what are cryptocurrencies?

cryptocurrencies

Cryptocurrencies are digital forms of money that exist only in computer code and cannot be directly converted into cash. They are mined or earned using computer hardware like graphics cards, then traded among individuals and businesses on exchanges like an ordinary currency. The most famous form of cryptocurrency, Bitcoin, has experienced a surge in popularity recently as it skyrockets in value. There are many other cryptocurrencies available for trade on exchanges—the most popular being Ethereum—but Bitcoin remains king.

The basics: why invest in cryptocurrencies?

Investment

The first step in getting started with trading cryptocurrencies is understanding what they are. While they might seem new and unfamiliar, they’re essentially digital tokens—much like a video game token or casino chip—that can be exchanged for goods and services at certain outlets. The most famous example of a digital currency right now is Bitcoin, but there are hundreds of similar digital currencies that investors can choose from (called altcoins) and thousands more that have been created by startups as initial coin offerings (ICOs). Cryptocurrencies are secure because they’re built on top of blockchain technology. That means each transaction you make has to be verified against every other transaction before it can be recorded.

The basics: how to trade cryptocurrencies on the stock market:

Market

Cryptocurrencies are an online form of money and a relatively new method of payment. The currency has attracted a lot of attention over the past few years, but it’s not just for trading with – in fact, some people have gotten really rich from trading cryptocurrencies like Bitcoin. You can buy or sell them on a variety of exchanges. You can use them to make purchases or you can simply hold onto them in hopes that their value will increase over time. Just remember that even though cryptocurrencies exist outside of traditional banking institutions, they’re still very much attached to your financial accounts.

How much does it cost to trade cryptocurrencies?

Cost

The cost of trading varies between exchanges, depending on what currencies you’re looking to trade. There are also transaction fees. The most popular platform, Coinbase, charges a 1.49% flat fee for buying and selling Bitcoins and a small fee per transaction on top of that based on how much money you’re moving around. At time of writing they charge an additional $0.15 per credit card transaction which can quickly mount up if you’re doing multiple transactions at once. However other options like GDAX do not charge any fees so it’s worth comparing your options before transferring funds between exchanges or wallets to find out what works best for you.

Good cryptocurrency exchanges for beginners:

Exchange

Coinbase has a straightforward interface and lets you easily trade fiat currency for bitcoin. The price of bitcoin fluctuates dramatically from hour to hour, which means that you could make a profit in just a few hours. If you're serious about trading cryptocurrency, you should check out Poloniex, Bittrex and Bitfinex. These sites let you trade many different types of cryptocurrencies with each other (including Bitcoin) or directly with US dollars. However, if your goal is long-term investing—say, five years or more—you might want to keep your money on Coinbase instead of moving it around every day or week.

Tips for getting started as a crypto trader (for beginners only)

Tips

Crypto trading requires a lot of research, patience and discipline. Here are some tips to get you started: Learn how legal trading works: Whether you’re looking at investing in Bitcoin or Litecoin, it’s important that you understand how trading works before jumping into crypto coins. Many people have lost money from shady cryptocurrency trades. It’s not easy to explain in a few sentences, but when you get down to it: Know what it is and why people are so excited about it. If a few paragraphs about encryption isn't interesting for you—cryptocurrency probably isn't for you yet! Do your research on common scams: Scams happen all too often within blockchain communities.

Trading crypto is legal or not?

Legal|Illegal

The question of whether or not trading crypto currency is legal has always been a hotly debated topic. And for good reason. Because just like most other things in life, there are no simple answers that can easily be put into a black and white statement. And then there’s also all of those shady platforms out there on dubious . . . well, let’s just say: it’s complicated. The issue at hand basically boils down to two different questions being answered by two completely different laws

Bitcoin or Etheruim:

Bitcoin or etheruim

What’s more exciting, and potentially profitable, than stock-trading? Online training for trading in cryptocurrecy could be your answer. Specifically, both Etheruim and Bitcoin are two of the hottest cryptocurrencies on earth. One person can buy a whole coin or fractional coins. You can trade them online. And they tend to go up in value -- in their recent history, at least. At first you won't understand it all -- but you'll be able to make good trades because you've been trained how to do it.

Trading is suitable or not for beginners:

Trading for beginners 

Making money through bitcoin mining or trading can seem very attractive, but it’s important to realize that not all investment plans are for beginners. These days, you have quite a few options when it comes to investing in bitcoin; however, if you’re new to crypto-trading and don’t know much about blockchain technology or what a smart contract is, you may want to pass on these opportunities. Cryptocurrency can be overwhelming at first glance and that feeling of insecurity could make you feel like you’re getting into something beyond your reach—which will likely lead to missing out on potential gains and a sour taste in your mouth when things go south.

How to make a professional in trading:

Professional

I've been in many conversations about cryptocurrencies and often hear I want to make money by trading . Well that can be done, but it is not easy. I think one has to have a strategy which he follows reli
giously , and which has proven successful in different market conditions and also needs patience, discipline and also risk management skills. The basic principle of any kind of speculation/trading (as I know) applies here as well: don't spend what you can't afford to lose. In addition, I would say: Don't put all your eggs in one basket. Meaning do not invest all your savings or borrowings into crypto currencies, spread them out into other types of investments too like stocks or bonds etc. Also try to keep track of your trades on a regular basis so that if things go wrong you will be able to react quickly and maybe even save yourself from getting into a big loss situation. And lastly - Have fun with it! If you're doing something just for making quick bucks then there is no fun at all - so why are you doing it? Just remember what got you interested in cryptocurrencies in the first place - because they promise freedom from governments and banks being able to control our money supply and manipulate interest rates etc., right?

What Elon Musk says about trading:

Elon Musk Says

According to Musk, when it comes to investing, he recommends caution. I'd be very concerned about a lot of the cryptocurrencies -- I do not recommend that, he said in an interview with CNBC in September 2017. According to Musk, there are way too many people jumping into cryptocurrencies without a plan for what they're going to do with them. To him, currencies like bitcoin are more akin to investment gambling than actual assets. And then there's timing: It's quite tricky, he said. You need a good dose of irrational exuberance and also a good dose of skepticism. According to Musk, those two forces will likely see the value of cryptocurrencies rise for some time before it all ultimately falls apart -- just like many other bubbles throughout history have done before them.

Who is Elon Musk:

Elon Musk

Elon Musk, who heads electric-car maker Tesla Motors Inc. and rocket company Space Exploration Technologies Corp., may be at risk of losing his billionaire status based on share losses in his publicly traded companies. The Silicon Valley entrepreneur’s net worth fell by about $400 million, or 2 percent, in trading Friday, according to data compiled by Bloomberg.