What Is Cryptocurrency Trading
We have already discussed a lot about cryptocurrencies and crypto coins and now let’s talk about cryptocurrency. Bitcoin, as you already remember, was the first blockchain as it was introduced in 2009. You couldn’t exchange it with some other cryptocurrency because there was only one coin accessible.
People began trading cryptocurrencies just a few years later when more and more cryptocurrencies were developed. The concept is rather straightforward. You exchange one cryptocurrency for another with the hopes of increasing the worth of the coin you purchase.
This is the same definition as a real-world stock exchange. People who want to sell cryptocurrencies must do so through a cryptocurrency exchange. This is done in order to balance buyers and sellers. For eg, if you have Bitcoin and want to trade it for Ethereum, an exchange will assist you in finding an Ethereum seller.
You would be charged a fee by the exchange for doing so, which is usually about 0.1 percent per transaction. The cryptocurrency exchange has grown in popularity, with billions of dollars worth of coins traded every day.
Many people are still selling cryptocurrencies as a full-time career, thanks to the “lucky” ones who have made a lot of money doing it. Experienced merchants, on the other hand, use a variety of methods to assist them in selecting the correct coins at the right time. This may include tools that aid consumers in analyzing price patterns in the past, for example.
Regardless, everybody has to begin somewhere! There’s no point in giving it a shot as long as you’re not doing more than you can expect to lose.
SHORT TERM TRADING
Short-term investing is when you purchase a cryptocurrency with the intention of selling it after a short period of time. This can range from minutes to hours, days to weeks, and even months!
You could buy a cryptocurrency because you believe its price will increase in the near future. If you think the price would drop again, you’d sell it for a fast profit!
LONG TERM TRADING
Have you used the term “HODL” before? If you don’t, we’ll say you’re brand new to the crypto world! No, it’s not a dictionary term, but you’ll definitely hear it in crypto forums and online chat groups!
The expression “HODL” refers to keeping a cryptocurrency for a long time rather than selling it. The literal translation is “Hold on for Dear Life.” Long-term crypto investing typically entails keeping a coin for a year or more.
The theory is that, although there will still be uncertainty, the price will rise significantly in the long run.
The fortunate buyers who purchased Bitcoin in 2011 when it was just $0.35 are a perfect example of this. They could have sold their coins for almost $20,000 each if they had hung on until late 2017! That’s a return of more than 57,000% on your initial investment!
You can always visit our platform, for any trading or investing-related problems, we’ll be really happy to assist!