When it comes to cryptocurrency trading, there are many ways you could do it. The old fashion way is to buy digital coins via an exchange platform. That implies having a wallet where you can store your coins. However, this is good only when you buy cryptocurrencies for long-term. If the objective is to profit from short-term fluctuations, the easiest way to do it is via an online broker, which offers CFDs based on cryptocurrencies. In this way, you are not buying coins, but CFDs based on cryptocurrencies.
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Choosing the broker and the first steps
You should carefully choose the broker you want to trade with since a few things are required. Firstly, the broker needs to be regulated by a well-known public regulator and also, it needs to have an already-established reputation in the market.
Since we are talking about cryptocurrencies, it also needs to work with a good liquidity provider, due to high levels of volatility we’ve seen in the market in the past one and a half years.
You can find a lot of options, like the trade.com crypto trading, but make sure to carefully consider the details we’ve mentioned here. In terms of which cryptocurrencies you should trade, our advice is to stick with the most popular ones. Bitcoin, Ethereum, and Litecoin are some examples with that respect.
Why should you stick with the most popular ones?
Because trading volumes are much bigger and there are a lot of people/ companies making transactions on a regular basis.
What kind of strategies should you use when trading cryptocurrencies?
Almost all the strategies that used for forex or stocks could be applied for cryptocurrencies, as well. Especially those ones that are commonly used in volatile environments. From our point of view, false breakouts occur very often in the cryptocurrency market and by using this kind of strategy with-trend you have the potential to find a lot of profitable situations.
What you also need to take into account is the fact that you will need to monitor your trades on a constant basis. At least a few hours a day are required since the market is so volatile and prices are changing at a fast pace. Make sure to allocate enough time, not just for trade monitoring, but also to be updated with the latest news from the industry.
These are just some of the aspects you need to take into account if you want to start trading cryptocurrencies online. Make sure to take each one of them into account.
Crypto currency is a risky asset and it is not suitable for all investors. You should carefully consider your level of education and capital available before deciding to invest in crypto currencies. Losses can exceed deposits.