Trading with Cryptocurrencies

Cryptocurrency trading and the cryptos on the market

Is it the right time to trade with cryptocurrencies?

As an investor who hasn’t delved into the world of cryptocurrency trading yet, it’s perfectly acceptable to become adamant with the idea of investing money in digital currencies. While it’s a new investment option, the cryptocurrency market is exponentially growing, but experts say that it may experience a significant drop in the years to come.

Abeer ElBahrawy from the City University in London shares that the cryptocurrency market can be likened to an ecosystem which continuously diversifies and evolves over time. Today, investing in cryptocurrency continues to be popular due to two known factors.

First, cryptocurrencies prevent unauthorized copying by making transactions as transparent as possible, making it available online for easier comparison. Therefore, one bitcoin cannot be used to purchase two different things.

Second, these ledgers (copies of the transactions) are protected cryptographically. As new transactions happen, the ledgers become updated regularly, but not without first encrypting and freezing the first ledgers to prevent any form of unauthorized alteration from happening. The new version of the ledger — the block — now contains the encrypted first ledger and can only be checked by generating a number. However, this number is extremely difficult to generate, and even so, one can only check the ledgers, but not copy it.

The continuous update of ledgers results to a chain of blocks, which is the blockchain technology most cryptocurrencies are known for. Elbahrawy examine about 1,500 cryptocurrencies and found that 600 of these cryptocurrencies are actively being traded today. Cryptocurrency day trading continues to become popular, and now the market has grown to an amount of $54 billion.

Bitcoin, for example, has aspects that allow it to remain stable, hence bitcoin trading continues. However, experts identified some technical limitations in Bitcoin, which led to the creation of other cryptocurrencies, such as Ethereum and Litecoin. Although these are still worth less than Bitcoin, the cryptocurrency market became diversified, which may result to the Bitcoin market share failing. Experts even predict it to fluctuate around 2025.

It is important to consider these factors, because it’s possible for the values of today’s cryptocurrencies to drop after a few years. If you’re thinking of investing your money in digital currencies, the best time to do it would be now, while these cryptocurrencies are still on their way to exponential growth. The reason is because more cryptocurrencies are going to be launched, and there isn’t telling if it’ll affect the value of today’s cryptocurrencies.

How to Start Trading with Cryptocurrencies

Cryptocurrency trading for beginners can be daunting at first to learn, but good thing articles like this one are written to help guide them to the right path. You’ll need to familiarize yourself with a few things, and you’re good to go.

The first thing you want to do is to become familiar with cryptocurrencies and what they’re all about, as well as the basic concepts associated with them. Note that one cryptocurrency is different from another cryptocurrency, the same way Bitcoin functions differently from Ethereum. You need to understand that cryptocurrency is more than just digital numbers that people use as an alternative for physical money. The blockchain technology mentioned in the previous section is what makes Bitcoin, Darkcoin, Litecoin, and other cryptocurrencies safe against the control and manipulation by a single source. Transactions made with it are essentially error proof, making it attractive to most investors.

It may seem like an overwhelming task to learn all the technical jargon associated with cryptocurrencies, but if you’re interested in day trading cryptocurrency, bitcoin trading, and earning profits from crypto trading, then you’ll know that all these are worth learning.

The second step is to choose a broker that will help you get through the basics of cryptocurrency trading. In this article, you’ll find a top list presenting the most popular and reliable brokers on the cryptocurrency market. Once you sign up, you won’t have to tire yourself trying to manually learn about the steps before you start trading. Many of these brokers offer investors the chance to create dummy accounts first, which is perfect for beginners who are just about to try their hand at trading using a cryptocurrency trading platform. These platforms also feature not only the cryptocurrencies but also other trading products that investors might be interested to try.

Because there are thousands of brokers out there who all claim to be of great service to investors, it’s important that you get an idea of which brokers are reliable and trustworthy when it comes to cryptocurrency trading (bitcoin trading, etc.). On Binaly.com, you’ll not only find information about binary options and cryptocurrencies, but reviews of the best ranking brokers as well. The reviews contain summarized information on the broker, from its physical office address, to the different currencies and deposit options. It’s best to make your decision based on the most important information on these brokers to see if it fits your needs and preferences.

Why Should You Get Involved with Cryptocurrencies?

There are a couple of reasons why investing in cryptocurrencies is a smart choice, aside from the fact that it’s continuing to grow. Here are the advantages of bitcoin trading UK and trading in other cryptocurrencies.

Fraud

Giving out your credit card information to merchants poses a risk for identity theft, giving hackers full access to your credit card. Using card payments use a “pull” mechanism, allowing merchants to “pull” a corresponding amount from your credit account. Cryptocurrencies, on the other hand, use the opposing, “pushing” cryptocurrency holders (that’s you) to only send the amount needed without any other information included.

Universal Access

Most people nowadays can access the Internet through different devices. The majority of Internet users haven’t been on a traditional exchange system, which makes the cryptocurrency market an advantage. Now, having your own Bitcoin wallet can be easy as installing an app installed from Google Play or App Store.

Immediate Settlements

When you purchase property, for example, you will need a middleman in-between you and the seller. This might cause additional fees, delays, and even unexpected difficulties. Using cryptocurrencies as a form of payment only requires a few steps, an example of which are Bitcoin contracts that allow users to remove third party approvals, and even allows for future settlement.

Affordable Fees

Most cryptocurrency transactions do not have transaction fees because networks often compensate miners. There are, however, third party services like Coinbase, which act the same way as PayPal that manages online exchanging systems. This means there will likely be fees, but it’s safe to say the fees aren’t extravagantly priced.

You are the owner

This is the most important advantage of having cryptocurrencies; as long as you have it in your wallet (e.g. Bitcoin wallet), it’s yours. Your account isn’t and shouldn’t be owned by anyone else as well.

PayPal, for example, has the power to freeze your account without informing you, even if your account has been hacked. With cryptocurrency, you have a private key in your possession, in which you have your cryptocurrency address. Unless you lose it yourself, this key is yours and yours alone.

In addition to these advantages, cryptocurrency trading is fairly easy to learn, and allows you to use more than one currency simultaneously. There are many things required before you can start trading at the stock market, but with cryptocurrencies, you can start trading right away as long as you have access to the Internet. Lastly, there are demo accounts that lets users become familiar with the different platforms and cryptocurrencies before taking the plunge.