Cryptocurrency Trading Overview
Cryptocurrency Trading is the Forex (Foreign Exchange) of cryptocurrencies. This means, you are able to trade different bitcoin and altcoin normally for USD and BTC. Cryptocurrency Trading is an alternative way to get involved in the Crypto-World! It doesn’t require mining hardware nor investing in bitcoin hyips or bitcoin cloud mining (which always has risk involved in their integrity).
Why trade bitcoin and not Forex?
Easy to enter
To start trading bitcoin and earning money, you really need less than an hour – for the how to steps, just scroll down. If you want to start trading Forex, you need to open an account – this takes several weeks until they send you the sign up forms and access code. Then it takes some days until you transfer some money from your bank account to your Forex Broker.
We should not forget, that crypto-trading is also easy to leave. You just transfer your bitcoins out of the exchange into your wallet and you are done. We don’t even want to start talking about how nerve-racking it is to quit your broker.
Margin at Cryptoexchanges
The features of leverage and margin trading is possible on some Forex as well as on Cryptocurrency Exchanges.
Margin Trading: You are allowed to use funding from peer-to-peer margin funding providers. This means, that you can borrow buying/selling power, but you need to alocate some funds (=margin) which won’t be accecible until you return the lending capital.
For example, you only have 429 USD but you want to buy 2 BTC. This is possible, but you will have to pay some interest after you close your position. For example, the BTC close at 450. So you have made 2*21 USD = 42$ winnings. Than you only need to subtract the low interest (about 2%) and you have your final earnings, which are higher, if you predicted the course of the trade correctly. Though you can lose more, when you have a losing position.
Leverage at Cryptoexchanges
You have the option to use leverage trading on some Forex and Cryptocurrency Exchanges.
Leverage Trading is the possibility to trade an amount, which you don’t have at your disposal. Normaly Cryptocurrency Exchanges offer a leverage of 1:10. This means, that for each dollar you get 10 dollars of buying power.
In conclusio this means a higher risk and a possible higher profit.
Getting started trading cryptocurrencies like Bitcoin
The first thing you need is a wallet. Only then you are able to buy crypto-currencies like bitcoin or ethereum and protect them. We have made a guide on how to obtain bitcoin already, check it out if you don’t already posses one.
The majority of cryptocurrency exchanges have a free a wallet along the ability to trade, but we suggest, that you don’t put all your bitcoin at one place. This way you can minimize your risk of an exchange getting broke (f.e. MT GOX), being scammed or getting hacked.
Security: Don’t forget to activate your two-factor-authentication to be more safe. Most exchanges offer cryptocurrency trading with the need of bitcoin (for example: ethereum for bitcoin, or bitcoin for litecoin), this is why bitcoin is the first thing you should consider buying.
Cryptocurrency Exchanges
Now after you bought yourself some bitcoin, the time has come to choose your exchange place. This is where you are able to instantly trade from one cryptocurrency into a different one. Take note of the currency trading pairs – each exchange has a list of their own. There are exchanges, where you are able to only exchange Bitcoin to Altcoin, but not Altcoin to any other Altcoin. This hinders the ability to trade fast and flexible. That is why we have made a list of the best crypto-exchanges. On this list you can find the most competitive bitcoin brokers available, offering lowest transaction fees.
After opening an exchange account, you need to transfer an amount of bitcoin from your wallet to your exchange account. Another option is to deposit fiat currencies (like USD, EUR etc.) – but take into consideration the fact that there are higher fees attached to those transactions.
Automated Bitcoin bot trading
The human mind can only follow several indicators at a given time. A Bitcoin (or other crypto-currency) bot can follow and try all the indicators at any time on all the cryptocoins. A Bitcoin bot doesn’t need sleep – a bot can be active at any time you wish, this allows to have a better sound, because you can be sure, that the bot will trade if something crucial happens.
Bitcoin Bots are accessible
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