To be frankly speaking trading cryptocurrency can be quite a risky business. Some people have made lumpsum money while others have lost their hard-earned money. The idea of trading is quite simple and elementarily is propelled out of the thought of exchanging one cryptocurrency for another, with the hope that the one you buy has an increased value. Isn’t it same as that of real world stock exchange. But how are you going to complete the journey from 0 to 100 in being a cryptocurrency trading? Here is a definitive guide on Cryptocurrency trading tutorial. Have a look!
Based on the tenure, trading can be divided into two main types named as long-term and short term trading.
- Long-term trading:
In long-term trading or you can say with HODL(slang for hold on for dear life) meaning holding cryptocurrency for a long-term, you hold a coin for one year or more. The prime odeaos to rely on the volatility of the market and sell the currency as market value reaches its peak. Another advantage of having long-term cryptocurrency is that you don’t have to purchase in bulk, rather you can buy the currency in small proportions and let ot grow over a long period of time. So you don’t need to worry about the volatility or market risks at all. But relying on the long-term basis isn’t always beneficial as you might miss the advantages of the short-term currency.
- Short-term trading:
On the other hand short-term trading is all about buying cryptocurrency and keeping it for a relatively shorter period of time that may range from minutes anf hours to weeks and months. There is a multitude of advantages of going for the short term trading. For one, you can make high margin gains unlike the fiat currency markets that offer less or no profit percentage. But there are associated risks as well. As you know bitcoins or altcoins are largely subjected to volatility of markets that change quite rapidly. This means that if you have made up your mind for short-term trading then you have to scrutinize the markets carefully.
Whatare the process involved?
Thw first step of trading cryptocurrency is purchasing coins. You can always go for bitcoins at it is accepted at all platforms. Then you need to open an account at coinbase followed by the verification process. Click on buy/sell and choose the payment method that would serve the purpose for you. Following that you need verify your identification as you upload your id proof. As coinbase is quite strict with its security regulations you need to do it promptly and proficiently. Enter the payment details and Voila! Your work is done!
The bottom line:
Trading Bitcoin isn’t rocket science. All you need to do is to keep in mind a few intricacies. While trading the cryptocurrency you need to keep in mind both the technical as well as the fundamental aspect. Analyze the underlying variables and asses the volatility in order to play on the safer side. Also keep in mind the historical price data if you want to predict the future values.