Trading Cryptocurrencies
Cryptos are not traded on the open market. This means that you need to go through a crypto exchange. These exchanges work in the same manner as FOREX does. The difference lies in that you are not trading “real” currencies. Rather, you are exclusively dealing with cryptos.
In a crypto exchange, you can use US Dollars, for instance, to purchase coins. You can then sell them back to other users for a profit or loss, depending on the outcome of the trade. Alternatively, you can choose to hold on to them as long as you wish. The main thing here is to be cognizant of the price.
Since price fluctuates freely, you need to pay attention to the quotes for standard cryptos. Thus, you can track their value and sell whenever you like. One thing to note here is that crypto trading is much simpler than FOREX. You don’t need quite the complicated setup to trade cryptos. All you need is to buy and then sell. However, you need to keep your eye on the ball.
The good side of this is that cryptos don’t have nearly the same trading volume as FOREX does. So, you shouldn’t expect a second-by-second price action. You can determine the price action over much longer timeframes such as hours or even days. If you are proficient in chart reading, you can easily detect patterns in charts. Thus, you won’t have to spend hours reading technical data.
Best Cryptos to Trade
This is a question that is commonly posed. For most folks, cryptos equal Bitcoin. As we have mentioned, Bitcoin is not the only game in town.
So, here are the top 10 cryptos you can trade today based on their market cap:
- Bitcoin
- Ethereum
- XRP
- Tether
- Bitcoin Cash
- Bitcoin SV
- Litecoin
- EOS
- Binance Coin
- Tezos
While this list is hardly exhaustive (there are over 5,000 cryptos in the market today), these offer the best chance for you to make some returns when trading. You can go on a crypto exchange like Coinbase to learn more about how you can open an account. Then, you can begin trading in these coins. The best thing about this list is that they all have varying prices. So, you don’t have to shell out $10,000 for one Bitcoin. In fact, some trade for a little as a few pennies on the Dollar. As such, there is a price for everyone.
While there are other exchanges out there, the main thing to keep in mind is that the same rules apply. It’s important to focus on reputable companies that offer a solid reputation and a good track record. Additionally, you will find that reputable crypto trade exchanges offer a great deal of support. After all, they are interested in facilitating trade as much as possible so that others can join. Consequently, you can expect to get a great deal of help when starting out trading cryptos.
