Category Archive : Guides

Common Risks Associated with Crypto Trading

Common Risks Associated with Crypto Trading

Although it is true that crypto trading has advantages galore, there are certain risks as well that you need to be aware. Awareness of these risks is very important and minimizing the said risks is equally important if you want to trade cryptos in a safe and efficient manner. At this point you might be wondering what are the most common risks associated with the domain of digital currency trading. The following are the 3 most common risks that you should know of. Read on to learn why types of mistakes you should avoid when you trade in the crypto world.

Paying a Significant Amount to Trade

A less obvious risk to those traders who wish to trade in cryptos is the reduction in their profit margins if they trade on a platform that charges a high fee. Every broker will charge you a certain commission for each crypto trade that you make. What paying this commission means is that your own profit will be slightly less. Hence, to reduce risk of low profits, it is in your best interests to engage on a crypto platform  where the broker will charge you a low fee and not spring any extra charge on at the 11th hour. When you pay less to the broker, you can inflate your margins very easily.

Selecting the wrong Cryptocurrencies to Trade

One very important thing that you need to realize is that not every crypto in the world is created equally. Although from a technical analysis view point, trading almost every type of cryptocurrency can be very much profitable, when you look at it from a fundamental view point, there are certainlyvarious crypto classes. It is of paramount importance that you select the right cryptos to trade. If you make the mistake of selecting the wrong type of crypto, you can end up losing a lot of money and that is something you surely do not want, particularly if you are a newbie trader.

To that end, you can consult with your broker and get his or her advice regarding which crypto is most suitable for you to invest and trade in.

Signing up with an Unreliable Crypto Trading Platform

To trade cryptos, you need to first sign up on a reliable Bitcoin news and trading platform. Here it is very important that you do your due diligence when selecting your trading platform. That is because there a number of such platforms operating online and most of these have doubtful credentials. In fact, some platforms are outright scams and engaging with them can prove to be very disastrous for you. You can end up losing all your funds. If you do not want to take that risk, it is vital that you only register with a trading platform that has a strong reputation in the crypto world and has a proven track record as a highly dependable platform that traders can trust at all times.

What you do is read a bunch of reviews about every trading platform online to help you decide if that is a suitable platform for you. If you are hasty and sign up with the first crypto platform you come across, there is a likelihood that the platform will scam you in some way leading to a terrible trading experience. To ensure a smooth trading experience, be sure to always identify a top-quality and reliable platform.

Conclusion

Crypto currency trading risks can at times have a very significant impact on your trading journey. To conclude, it is always in your best interests to steer clear from the aforementioned risks of crypto trading. Making careful decisions is very important here so you do not fall victim to any kind of scam. That will help you to minimize chances of losing any money and your trading experience will be very positive as well. You can also learn more about common risks associated with crypto trading online.

Read more: Crypto Currency Trading: Top Advantages

Crypto Currency Trading

Crypto Currency Trading: Top Advantages

There is no doubt that crypto currency trading has become very popular in the last couple of years and more and more people are jumping on this particular bandwagon. Do you wonder why? The truth is that trading in cryptos has numerous advantages which makes them an ideal instrument of trade. The following are some of the best advantages of crypto currency trading that you should know about. Keep in mind though that although crypto trading has certain setback as well, the benefits definitely outweigh the cons of crypto trading. Read on in these trading tips to find out more.

100 Percent Transparency

There is no denying that transparency is an important thing when you talk about transferring money. By leveraging blockchain technology, it has become likely that although every transaction can be observed, all personal details remain concealed. Hence, your crypto wallet remains visible, but your personal data is not. In addition, that boosts the security of making use of cryptocurrency since no one can manipulate the protocol, whether it is an organization, individual, or government.

Day Trading and Long Term

Another advantage of trading cryptos is that you have the flexibility to choose between 2 distinct options to choose when you trade: Cryptocurrency day trading and long-term holding. In crypto long-term holding a certain investor makes the decision to hold token or coin for a long-term period believing that in the foreseeable future it will be more precious. Most of the time, crypto coins are held for at least 1 year.
On the flip side, when you talk about day trading, a trader tries to take benefits of fluctuations in price that often happen within a day.

Both of these methods are in fact excellent opportunities for any trader who would like to take part in the cryptocurrency trading domain. That said, although for new traders, the long-termcrypto holding would most likely be easier to go with.

Cryptos Operate Round the Clock

It is true that the crypto currency market is open for online trading round the clock every day. If you are wondering why is it, it is because the market is not centralized or government-controlled. Individuals have the freedom to trade any cryptocurrency they want with one other at any time that is convenient for them. You can even work with Bitcoin robots. This is very advantageous as you have the flexibility to organize your own schedule and trade whenever you please.

In addition, there a number of crypto trading platforms out there that automatically trade a number of cryptocurrencies on your behalf so you do not have to do it yourself (this feature is called algo trading). You can easily avail this particular feature even while you are hanging out with your friends or are asleep.

Minimal fees

When you deal with traditional currencies or fiat, you often have to pay a certain fee when you make any kind of transaction on the trading platform. This fee is contingent on the exact transaction amount or charge different tax types. The good news for you is that crypto trading does require these things. Every transaction performed with cryptos require minimal fees, and you can rest assured that zero tax will be charged on such crypto transactions. That can help you save a lot of money that you may use for other things or buying more cryptos.

Bottom Line

To summarize, cryptocurrency trading has numerous advantages if you do it right and in an efficient manner. Any online trader will tell you that cryptos are the currency of the future and trading cryptos will become even more profitable in the near future. To trade cryptos, you need to sign up on a reliable trading platform which supports this trading option. After you wire your funds, you can begin trading right away without any delay. You can also reach out to your broker if you seek advice on which cryptos are best foryou to invest and trade in.

Read more: Cryptocurrency MLM Software Development

Prevalent Crypto Trading Scams

Prevalent Crypto Trading Scams and How you can Avoid them

It is quite simple for anyone to think that every individual is getting rich in cryptocurrency trading. A number of scammers take full advantage of crypto trader greed with doubtful services and products. The following are some of the most common scams that you should know of:

ICOs (Initial Coin Offerings)

Initial Coin Offerings are basically fundraising mechanisms for cryptocurrencies that have been newly launched. Traders in Initial Coin Offerings receive tokens in the new endeavor. A number of ICOs have managed to launch with certain predicaments:

  • Although numerous Initial Coin Offerings are 100 percent legitimate, most of them have no real technology or business plans behind them.
  • Some of the Initial Coin Offerings launch with a bit more than a whitepaper crafted by individualswith no industry or technology experience.
  • Brand new altcoins at times make ungrounded claims regarding their several products.

Initial Coin Offerings Fraud

Regulating agencies, governments and law enforcement agencies have begun to crack down on Initial Coin Offerings fraud:

  • The United States of AmericaSEC (Securities and Exchange Commission) has filed charges of fraud against Initial Coin Offerings that were sold on the grounds of fraudulent claims.
  • China has completely banned Initial Coin Offerings sales.
  • A number of individuals who are well familiar with Initial Coin Offerings fraud, including Jordan Belford (the popular “Wolf of Wall Street” person) have detailed Initial Coin Offerings as the most significant scam ever.

Unregulated Exchanges and Brokers

You would be quite surprised to know that there happen to be many number of unregulated online brokerage firms and exchanges that offer cryptocurrencies and cryptocurrencyrelated trading robots. Traders need to cautious of promises and promotions that seem too good to be true and claim to make you rick very quickly! Once you deposit your funds, most of these establishments will charge you ludicrous commissions. Alternately, they can make it a headache for you to withdraw your funds. The most terrible offenders will just pilfer your money just like that and you can do nothing about it!

How to Trade Cryptos Safely and Avoid Scams?

Because of the abovementioned scams, it is very important that you trade cryptos in a safe manner. The million-dollar question is how can you go about doing that?  The following are some of the ways you can use to trade cryptos safely and avoid scams.

Very Careful Research

It is of paramount importance for crypto traders to thoroughly read reviews about various exchanges and brokers prior to opening trading accounts. It is true that the massive cryptocurrency landscape makes some news each day with new exchanges and products. Therefore, finding current and reliable information is extremely important if you do not wish to fall victim to any kind of crypto scam.

Selecting a suitable Instrument of Trade

Before trading, traders might select to purchase cryptocurrency via a broker or an exchange, but there are other credible strategies you can use to speculate on prices of cryptos as well. One such popular way is using Cryptocurrency CFDs.

So what are cryptocurrency CFDs? A few of the traders who wish to speculate on the certain price of a cryptocurrency might consider trading CFDs (Contracts for Difference). A contract for difference is a powerful financial instrument that enables traders to speculate on movements of prices rather than owning the cryptocurrenciesthemselves. Contracts for Differences are a financial product (regulated). What that means is that the brokers who provide them ought to be officially licensed by a regulatory authority.
Bottom Line

To summarize, it is important that you are aware of the common crypto trading scams and not fall victim to them. To that end, you should follow the strategies mentioned in this article to avoid such scams and trade carefully and safely. You can also consult with your broker who can guide you better regarding safe crypto practices  that will ensure you do not get scammed.

Trade Crypto Currencies

Best Tricks and Tips to Trade Crypto Currencies

Cryptocurrency trading can prove to be very profitable if you do it right and make use of all the correct strategies. This article looks into the best tricks and tips you can use to trade various crypto currencies. You may also consult with your broker to gather more information about how you can trade with the least amount of risk. So without further ado, read on to learn about the 4 best tips you should defiantly employ if you plan to navigate the territory of cryptocurrency trading.

Find reliable sources of news

Finding reliable crypto news is the most obvious tip if you are genuinely interested in trading cryptocurrencies.! There is no denying that there will always be several adverse and conflicting opinions regarding cryptocurrencies, as well as those folks who own them. Majority are of the opinion that crypto is simply a scam, and those who invest and trade in them will only end up facing disappointment and will lose their money.

If you are 100 percent convinced that trading in cryptocurrencies will be an advantage for you, it would be wise to keep to those sources that you can trust and keep clear from the words non-believers. It is important for you to stick with reliable and dependable facts, you can well be on your way to be a successful crypto currency trader.

Learn uses of both cold and hot wallets

While cryptocurrencies exist on a digital platform, you can still store them efficiently offline and online viacold wallets and hot wallets.  If you are a newbie starting out, the ease of access to offline hot wallets will prove to be a lot moreversatile and useful. However, Cold wallets, do provide greater protection from cyber hackers and other similar criminals. As part of your expedition into diversifying your crypto assets, it is vital that you thoroughly learn to use both wallet types. Having this knowledge will be beneficial for you in the long run!

Be fully prepared for the volatility factor

If you are familiar withtrading cryptocurrency to a certain extent, you would know that it is not as stable as the conventional currencies—simply rewind the clockand go back to the Bitcoin inflation to almost twenty thousanddollars apiece less than a couple of years ago. It is imperative that you are agile with your critical decisions and plan for what will be ideal for the existing asset amounts that you have.

At times, even those crypto owners and traders who are highly experienced still have zero luck with getting on top of the virtual coin trends. Hence, if you end up in the same proverbial boat, do not be too alarmed!

Be Very Vigilant

Although it is true that cryptocurrencies, whether you buy Tron or Bitcoin or any other crypto, tend to have greater safety ratings than conventional money, it is still better to be vigilant. If you would like to trade or buy significant amounts of cryptos such as Bitcoin or altcoins in your e-wallet, you should prepare yourself against the vulnerabilities and risks that you are exposing yourselfto.What you can do is study various ways and tactics of handling your newfound crypto assets and observe how you can manage your cash in a manner that is both convenient and responsible for you.

Wrapping it up

If you follow the aforementioned tips and tactics, it can help you considerably to become a more successful crypto currency trader. Keep in mind that crypto currency can be quite risky, particularly so if you are a newcomer in the industry. Hence, it always pays to adopt certain strategies with which you can minimize risks and engage in trading in a more efficient and successful manner. Also, it is important that you exercise patience as trading cryptocurrencies is a unique skill that requires time to master correctly. The last thing you want to do is to make any kind of hasty decisions!

Read more: 4 Advantages of Investing in Cryptocurrencies

Cryptocurrency Trading

Why Cryptocurrency Trading is better than Other Trading Instruments

Before the advent of internet, the entire world was considered off-line and majority of the interactions were physical and face-to-face. At that time, the only ways of communication were through telephone, telegram, or letters. Then there were trades, which were done physically and one had to be linked with the physical industries in order to benefit from them.

Then the world was introduced to the internet and that changed the way completely as to how the world interacted and trades took place around the world. Now, people are able to communicate with each other overseas without having to travel or wait for the letters to reach the destination in several weeks.

Things are now done instantly through the internet and the same thing has happened in terms of trade. With time, the online trading industry has made its name and has let even the most common of people to interact with the industry and benefit from it.

Overall Online Trading Instruments

When it comes to online trading industry, there are different trading instruments that the investors can choose to trade in on a cryptocurrency broker website. At present, the trading instruments available in the industry include stocks, indices, commodities, forex, and cryptocurrencies.

Among all the trading instruments, cryptocurrencies is the youngest member but it has gained huge success and adoption in the recent years. Although Forex trading is considered to be the most liquid market in the online trading industry, yet cryptocurrencies is gaining much more recognition and is set to experience much more trading volume than any of the other trading members.

Trading in Instruments other than Cryptocurrencies

If you go ahead and choose any online trading instrument apart from cryptocurrencies, you will have to comply with a central body that has access to your financial information and personal information as well. The markets are not as popular or volatile as cryptocurrencies, which means that you cannot make much profit from the industry in a short-term.

When it comes to stocks, commodities, NFT, and forex, you are required to purchase actual assets in order to profit from them. Once purchased, you have to wait for a while and monitor the market in order to assess the price of the assets before you can make a move and make some profit.

Then there are indices that are the collective market price of several companies combined together. The investors can make a call whether the price of the asset would go up or down at a particular time and make profit if outcome goes in their favor.

Benefits of Trading in Cryptocurrencies

Then there are cryptocurrencies that have taken the online trading industry in the past couple of years by storm. The industry is being adopted by all sectors and even by the commoners who had never invested in any online assets before, so here are some of the reasons why cryptocurrency trading is better than other assets:

No Third-Party Interference

The first benefit of choosing cryptocurrencies is that they are decentralized in nature so no one can interfere and alter the way they behave. If you wish to invest in cryptocurrencies, you can start with the least figure in your mind and go all the way up to a number that you desire to invest. There will be no one to restrict or cap the amount of money you want to invest in cryptocurrencies.

Cryptocurrencies are Trending

In the past couple of years, the entire world has realized the importance of virtual/digital assets. This is the reason why majority of the people and investors are moving to the crypto-sector. According to stats, the amount of trades that the crypto-sector has observed in first quarter of 2021, is more than what it did in the entire year of 2020. This makes the industry promising and more profitable than any other industry around the world at the moment.

Volatility is good in Cryptocurrencies

There are many who criticize that the entire cryptocurrency industry is volatile and that is why it cannot be trusted. On the other hand, the volatility of the cryptocurrencies makes them a highly profitable asset to invest money for a short term. While the prices of other assets fluctuates a little in matter of 24 hours, cryptocurrencies may experience up to 20% or all the way up to 100% drop/increase in their prices.

While this makes them very risky, yet it can prove extremely beneficial for the investors who want to make quick money through them.

Perfect Assets for Long-Term Investment

Despite the volatility, the overall performance of the cryptocurrencies is bullish in nature. This means that if an investor wishes to invest in cryptocurrencies, they can go for a long-term investment. This way, they will eventually end up making huge profits.

Bitcoin (BTC) is the perfect example for this scenario, as back in December of 2020, the price of Bitcoin (BTC) was around $19k per BTC and the time of writing, its price is at $60.66k per BTC. This means that if a person had invested in BTC back in December 2020, would now be making more than thrice the profit from investing in Bitcoin (BTC).

Read more: How you can Make Cryptocurrency Trading Journey a Successful One

Cryptocurrency Trading Journey

How you can Make Cryptocurrency Trading Journey a Successful One

At present, there are 5 major instruments that are being traded through the online trading industry. The names of these online trading instruments are forex, stocks, indices, commodities, and cryptocurrencies. Out of all 5 of the major trading instruments, cryptocurrencies is the one that is tending. In the past couple of years, the demand and trading volume in the cryptocurrency industry has surged to an all-time high.

Although the cryptocurrency industry had been around since 2009, yet it gained prominence over other online trading instruments in 2020 when the pandemic hit the world and people started looking for a way to make quick and online money. Since then, the cryptocurrency industry has grown to new levels that are unmatched by any other online trading instrument. Here are some cryptocurrency guides for in depth details in this regard.

The scale of cryptocurrency industry’s widespread adoption can be measured by looking at its market capitalization. Just recently, overall crypto-market capitalization has crossed the $2 trillion mark and has more than 110 million active users using it for trades. However, not everyone can gain success and profits in the cryptocurrency trading industry. Nevertheless, they can follow the following steps to ensure that they do make their crypto-trading journey a success.

Choose the Right Cryptocurrency for Yourself

Before you start trading in cryptocurrencies, the first thing you need to do is ensure you know exactly what cryptocurrencies are and how they work in the online trading markets. The most important thing to know about cryptocurrencies is that they are extremely volatile and their prices tend to fluctuate faster than any other asset in the entire online trading industry. So you need to look for the ones that despite the price fluctuation, are still generating huge profits.

Some of the most prominent ones include Ethereum (ETH), Binance Coin (BNB), Ripple (XRP), Bitcoin (BTC), and many more. So it is up to you whether you would like to choose either of the above or a cryptocurrency of your choice. You can go through historical data of a cryptocurrency and see how much growth and surge it experienced in the past couple of months before selecting one. You can even see Bitcoin price prediction on many platforms.

Choose the Right Cryptocurrency Brokerage

The next step is to find the right cryptocurrency brokerage/exchange that can help you in the right manner while trading cryptocurrencies. There are thousands of cryptocurrency brokerages providing crypto-trading services but there are only 10% of them live up to their reputations. Therefore, it is better you search for the right one, which you can do by checking with people through crypto-trading forums and get people’s opinion. These people can share their feedback and experience in crypto-trading and help you choose the right platform.

At present, some of the most prominent and promising cryptocurrency brokerages include Binance, Coinbase, KuCoin, and Gemini, etc.

Choose the Right Account

Once you have selected the right brokerage that is promising, the next step is to choose a trading account that suits your trading experience. Majority of the cryptocurrency exchanges offer different kinds of crypto-trading accounts that cater a particular trading experience. So do not get carried away with huge list of services and benefits provided by a high-level trading account, and go for the basic one. This way, you will not be spending much and even if you end up facing a loss, you will not be losing much.

Keep Learning and Gaining Knowledge

Majority of the cryptocurrency brokerages that have made a lot of name in the industry focus more on their traders instead of profits. This is the reason why you will notice that majority crypto-brokerages with high reputation provide educational content once you have an account from them. They provide you with educational e-books, videos, learnings, and other content to polish your trading skills and give you insights of the trading markets.

Therefore, keep gaining knowledge and high profits will become the by-products of the information that you gain.

Keep Yourself Up-to-Date

The cryptocurrency markets are always fluctuating and there is so much going on around the world that can drastically change the price and demand of cryptocurrencies. Therefore, you need to keep a close eye on the market situation, daily market news, price alerts, and economic calendars to ensure that you are able to make the right calls while trading. You can also go ahead and switch to a cryptocurrency that would prove to be more profitable for you in the long run.

Read more: Types of Trades You Can Perform in Cryptocurrencies

Trades You Can Perform in Cryptocurrencies

Types of Trades You Can Perform in Cryptocurrencies

It has been more than a decade since the cryptocurrency industry has been around. However, it was only in the past couple of years when the cryptocurrency industry became the most adopted online trading asset in the entire online trading industry with many trading tools. The platform has been gaining a lot of popularity and recognition all over the world and has been hitting all-time highs with respect to its market capitalization.

When we think about cryptocurrencies, the first thing that comes to mind is cryptocurrency mining. Although this option is always there but the cryptocurrency industry is way advanced than it used to be in the past. The industry has grown enormous and ever since the first cryptocurrency exchange was formed, the users have the ability to perform trades through cryptocurrencies.

Two Major Types of Crypto-Trading

There are currently two major types of cryptocurrency trading that the users can choose to trade-in. The decision of going for the right trading option is completely up to the user’s discretion as to what they want exactly. The trading types fulfill two different types of needs/conditions in when the traders wish to trade.

Traditional Cryptocurrency Trading

This is the basic trading type that is currently more popular than the rest of the major or minor crypto-trading types in the market. Traditional cryptocurrency trading is almost similar to foreign exchange (FX) trading where the investors choose trading pairs for fiat currencies and here, they choose cryptocurrency pairs against other cryptocurrencies or fiat currencies.

While forex trading offers only around 70 currency pairs for trading cryptocurrency trading offers more than 8,000 types of trading pairs to the investors within the crypto-industry. Then there are trading options available for cryptocurrencies against major fiat currencies. You can learn more in this regard at Winbitx.

Similar to forex trading, an investor can choose the cryptocurrency they think would be best for trading in. The users can choose a particular cryptocurrency and then keep it under their possession until the price of the cryptocurrency matures. That is when the users can sell the particular cryptocurrency and earn profit against the price difference between buying time and selling time.

If you are interested in going for the traditional trading, then some of the suggested cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Binance Coin (BNB), Ripple (XRP), and many more.

Contract-For-Difference (CFD) Cryptocurrency Trading

This is a newer kind of trading option that has been introduced for the online trading community. The contract-for-difference (CFD) option has been introduced by the cryptocurrency exchanges for the users so they can avail as much as they can from the cryptocurrency markets.

The major difference between traditional crypto-trading and the CFT crypto-trading is that in traditional crypto-trading, investors are required to purchase cryptocurrencies. On the other hand, the CFD trading option does not require for the investors to purchase actual cryptocurrencies.

Instead, the investors can choose a particular cryptocurrency, set the amount they want to put on it, and predict whether the price of the cryptocurrency will be high or low at a particular date, and time. If the decision goes into the investors’ favor, they end up making a profit on it.

This way, the investors do not have to spend a lot of money and then wait for the price of the particular cryptocurrency to go up so it can be sold to make profits. Through CFD trading, the money can be made instantly and one does not have to worry about purchasing and then holding on to the cryptocurrencies.

Make Up Your Mind

Despite being an attractive industry, cryptocurrencies are still part of the online trading platform. This automatically makes cryptocurrencies a risky instrument and this is the reason why one needs to be vigilant and alert when doing trades through cryptocurrencies.

One must always go through all the possibilities of losses and profits before reaching out to their bank accounts and start investing money. Things definitely sound very simple and easy when they are in a theoretical format, but one must always know that when it comes to being practical, things tend to become difficult.

Read more: Good Crypto Smashing TabTrader: A Revolution in the Cryptocurrency World

before You Start Trading in Cryptocurrencies

Things to Keep in Mind before You Start Trading in Cryptocurrencies

I know that the cryptocurrency industry is flying high and has come out as one of the most profiting and benefiting trading assets in the online trading industry, but there are always risks and catches that one needs to be cautious about. When we look at the cryptocurrency industry, its reputation, and market valuation, we perceive it as a city full of lights at night in the middle of a desert.

However, it is always wise to not get carried away and end up experiencing a loss while trusting something too much. As the industry grows bigger and more profitable, more people want to get into the crypto-trading industry. But, it is always recommended that one must be extra careful and vigilant when setting foot into the cryptocurrency industry for trading.

Crypto-Industry versus Online Industry

Almost everyone in the entire internet industry knows it the online sector is full of risks because everything being dealt through internet is virtual and remote. Therefore, one does not know who they are dealing with or its very nature makes it more complex than dealing with someone face-to-face. Even then, the internet sector mainly centralized, which means that if a person makes an online purchase, the product is delivered physically, and the transaction the person makes is either via cash or bank account, involving a central body.

On the other hand, majority of the cryptocurrency industry is decentralized finance. This means that there is no central body or a physical entity governing this industry. More than 95% of the cryptocurrency industry is decentralized and is being operated by crypto-users spread all over the world. Therefore, it is extremely important to keep the following in mind when going in for cryptocurrency trading:

Study Cryptocurrencies before Thinking about Trading in Them

It is true that the cryptocurrency industry is full of surprises, opportunities and many people who have gotten into it, have made significant profits from it. But it does not mean that you would have the same experience in cryptocurrency trading. The industry currently has more than 106 million active users dealing with cryptocurrencies in different ways but it all comes down to trading with cryptocurrencies.

There are possibilities that you are not meant for cryptocurrencies or they are not meant for you. Maybe you do not have the patience of dealing with vast amount of data or be able to handle the volatility of the cryptocurrencies. Or, it may turn out to be more complex than you may have perceived them to be in the first place. This is the reason why you must learn about cryptocurrencies before you set foot into this sector. The industry is full of pressure and if you think you can handle it, then you can go ahead and take the first step.

Find a Brokerage that is Legit

It is a fact that wherever there are opportunities, the scammers and fraudsters also show up to avail them as well. If you think that the best the fraudsters or scammers would be able to do in the crypto-verse is to send you some phishing or bogus email, then you are mistaken. Similar to the complexity of crypto-trading are the scammers that have gone to great lengths in order to lure people and steal their money.

There are many Bitcoin exchange platforms in the crypto-verse and not all of them are legit. Therefore, the first thing you need to do is to ensure that they are legit. In order to confirm a brokerage’s authenticity, you can go ahead and acquire guidance on the following.

The first thing you can do is go online and ask the crypto-community for their reviews and feedback on a particular brokerage. You can also go through the services/benefits that the brokerage offers and if the provider is making promises that are too good to be true then that is a hint it is not a legit brokerage. If a brokerage claims that your investments will have 90% or 100% profits without any losses, then that brokerage is fake. The fraudsters do this to attract more and more people, and from the looks of it, they have been succeeding.

Make sure that the Brokerage is regulated

At present, there are many brokerages that are legit and providing crypto-trading services to people for a very long time. These brokerages may also be very popular among the cryptocurrency industry as well as other online trading sectors. However, you need to pay extra attention to see if the brokerage is regulated or not. If a brokerage is not regulated, it would not comply with major regulatory policies such as Anti-Money Laundering (AML) and Know-Your-Customer (KYC).

In the past couple of years, regulatory authorities from around the world have become very strict about the regulatory adherence of the crypto-firms. There are many countries that are taking legal actions as well as shutting down such brokerages who do not comply with these regulations. Therefore, if you are dealing with such brokerage, there are always chances that it may get taken down by the regulators in minute and you end up losing your savings/money the second.

Read more: What Are Cryptocurrencies and How Cryptocurrency Trading Works

Cryptocurrency Trading Works

What Are Cryptocurrencies and How Cryptocurrency Trading Works

By now, almost any person with access to internet must be aware of the term “Cryptocurrencies”. If the answer is yes, and it should be, then they would definitely know about Bitcoin (BTC) or Ethereum (ETH). If you do not know exactly what they mean then allow me to elaborate the topic around cryptocurrencies and their trades.

Advent of Cryptocurrencies

Today, almost every person who is linked with online trading knows very well about crypto signals. Even a common person who uses internet for basic usage would also have an idea about cryptocurrencies. However, cryptocurrencies were not always as popular as they are today. In today’s time, cryptocurrencies are one of the major online trading instruments that the traders/investors have available to perform trades and make profits.

It was back in 2008 when the concept of a cryptocurrency was introduced by (still) an anonymous personality known as Satoshi Nakamoto. He is the same person who was responsible for introducing the first-ever cryptocurrency to the entire trading world that is known as Bitcoin (BTC).

Idea behind Cryptocurrencies

Although every country has its own fiat currency, then why someone would need cryptocurrencies and what was main purpose behind the creation of cryptocurrencies. The idea was present by Nakamoto on a white paper where it was told that cryptocurrencies will be fully decentralized, meaning that there will be no intermediary or central governing entity such as banks or other financial institutions.

The idea was to give the ownership of a person’s personal and financial information back to the particular person. It would be the users who would have full authority over the information they would want to share with others and they would not be bound by any restrictions or conditions in order to gain access to such currencies.

Trading Through Cryptocurrencies

When the industry was launched back in 2009 where Bitcoin (BTC) was the first cryptocurrency, it had no value or worth in the market. The main reason was distrust from the mainstream institutions as well as investors who were not into the idea of mining or trading in cryptocurrencies. As it was a unique and new technology, the majority of the investors were skeptical about the industry.

However, with time, the industry started becoming comprehensible and understandable as the cryptocurrency exchanges providing services similar to the ones provided by Forex, Stocks, Indices, or Commodity brokerages.

Today, with Bitcoin price going above 60,000 USD, the cryptocurrency industry is enormous and has a market capitalization of over $2 trillion, which makes it the only industry that is in the $2 trillion pool alongside Apple, the tech giant.

How People Can Trade Through Cryptocurrencies?

There was a time when Bitcoin (BTC) was the only cryptocurrency in the entire crypto-verse but now, there are more than 8,000 cryptocurrencies and each currency offers different prices, demands, valuations, and even unique services.

Over time, cryptocurrency trading has become similar to that of forex trading where the traders used to trade in pairs of fiat currencies. In cryptocurrency trading, the traders have the ability to trade among cryptocurrencies as well as fiat currencies.

Therefore, a person interested in cryptocurrencies can choose a cryptocurrency of their choice and then compare its market price as that of USD or any other currency they prefer. Trading in cryptocurrencies solely depends on how much a person wishes to invest or can afford to invest.

There are people who are investing a hundred dollars at the least and at max, in billions. This is because the cryptocurrency industry has grown enormous and highly profitable in the past couple of years and everyone wants to profit it.

Major Cryptocurrencies to Trade In

As mentioned earlier, there are currently more than 8,000 cryptocurrencies being traded. However, not every cryptocurrency promises to bring in decent profits. This is where one needs to be aware as to which cryptocurrencies they need to invest in.

At present, some of the major cryptocurrencies one needs to look out for are Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Litecoin (LTC), Ripple (XRP), Polkadot (DOT), and Cordana (ADA). These are some of the most promising cryptocurrencies that investors are going for and have been making huge profits out of them.

Keep In Mind

Although the cryptocurrency industry seems to be flying high and extremely profitable, yet there are always risks. Even if you visit a crypto-trading brokerage, you would find a disclaimer that trading in cryptocurrencies is riskier than forex or any other kind of trading. The major reason is that there is too much going on in the industry every single moment and the industry is too volatile as well as unregulated. This is the reason why, one must always remain cautious and do their homework before they get into trading.

Read more: Cryptocurrency Types & How is it Traded

binence crypto exchang

Why Binance Is Popular Among Crypto Exchange Platforms?

If there is any crypto exchange platform trading with the highest volume, it is Binance. The crypto exchange trades with more than 150 virtual assets from all around the world. Just a few years ago, Binance came up with its own coin, Binance Coin, which is now one of the top traded cryptocurrencies. People always go for this option because they know it is quite reliable. Several attacks have occurred on Binance but it recovered itself all the time. At present, there are millions of customers on this platform and many are still joining it. There are many reasons why Binance is popular among all the other crypto exchanges. Below, we will learn all of them. 

Why Binance Is Popular Crypto Exchange Platform

Just recently, Binance has partnered with Simplex, a notable payment processing firm. Simplex has been in business for years and it is performing well in the payment industry. With an alliance of Binance and Simplex, you will be able to purchase virtual assets efficiently with a credit card from the website immediately.

Binance is trying to expand more and Simplex will help it reach out to as many people as possible to the crypto world. During a conference, the CEO said that he wants to boost the reach of more expeditious services so that people can trade without any obstacle. The crypto exchange platform strives to eliminate a rift that has been rising between crypto business and payment organizations. Until now, no one has done such a partnership. Presently, the processing capacity of Binance is enormous and it can do it with millions of orders every second. It is also one among those where actual Bitcoin price actions take place. You can easily buy Bitcoin on Binance as most of the miners give their cryptos here.

Binance is now taking care of fiat options and if you are dealing with euros or pounds, you can benefit from Binance. je. In case you are from Uganda, you can use shillings with Binance Uganda. In these ways, the crypto exchange platform is trying to reach all the corners that are yet to be approached in the crypto domain. If someone focuses on developing a fiat gateway, in most cases, a crypto business will boom. This is because cryptocurrencies have not reached every dimension of the global population. Many people do not have access to even third-party payment solutions. The only thing they have is fiat that helps them buy and sell things. 

Security Feature From The Crypto Exchange

Another primary reason why Binance is popular is because of its security for the crypto HOLDers. Binance focuses a lot on securing crypto accounts and it brings new features so that hackers could not get into them. Firstly, it recommends choosing a strong password while signing up. A strong password can make it difficult, if not impossible, for hackers to breach into your crypto wallet.

Next, Binance implements two-factor authentication. This security feature is an important one because it has been the best practice in the world of security itself. With 2FA, Binance can use either your Google account or text for authentication. Make sure you enter the correct number so that you would not face any problem further. Just put your key to reset if you are sending your two-factor authentication to another smartphone.

Now, among a Google account and text, the former one is more secure. When you are choosing authentication with text, you may be a victim of SIM Swapping. In this technique, the user’s SIM is anonymously replaced. Many people have become victims of SIM swapping. You can choose to go for Google account authentication as it is the most reliable method of securing your account. After creating an account, you can buy crypto on Binance. Many people ask how to buy crypto on Binance. There is absolutely no big deal in that. Make your payments with cryptos and buy cryptos. Binance is not accepting fiats from many countries. However, it is trying to reach them to deal with their traditional currencies. You can easily pay cash if the crypto exchange allows you to do so in your region. After completing the payment, the cryptos will be in your account within a few minutes. Binance is very quick in crypto trading. 

Conclusion

So, I have described all about why Binance is popular. Before knowing how to use Binance, you should know why you should trade with it. Binance offers the most user-friendly interface and no new trader will have a problem with it. It started just a few years ago and within that duration, it is expanding all around the world. There are many crypto exchanges like Bitfinex, Kraken, Coinbase, Poloniex, etc. However, none of them is comparable to this one. Binance puts its best efforts to secure your crypto account. You will have the most satisfying experience while trading with this platform.