Since the advent of the first cryptocurrency in 2009, the use of cryptos has grown from ordinary unnoticed blip on a computer to a currency the entire world is now reckoning with, making and breaking fortunes via its soaring growth trends and the often-volatile trading pattern. Due to the increasing growth of cryptocurrencies, we taught it wise to curate a post that will teach you the basics of how cryptocurrency works and how to trade cryptocurrency CFDs like an expert.
Whether it's Bitcoin, Litecoin, or Ethereum, almost all countries of the world now accept these digital currencies to pay for goods and services.
Ready to learn? Then let's get started.
A cryptocurrency is an electronic currency that is secured via a technology known as cryptography. Most cryptocurrencies are decentralized in nature using the blockchain technology. One fantastic feature of cryptocurrency is that the government or central authorities do not regulate it; thus, they are immune to government manipulation or interference.
Cryptocurrency trading is the act of buying or selling a cryptocurrency on an exchange or speculating on price movements using a CDF account through a financial service provider.
Before learning how to trade cryptocurrency, it is imperative to know the types of cryptocurrencies on the market. As of the time of writing this post, there are more than 6,000 digital currencies and altcoins in circulation, including the cryptocurrency giant that is highly traded - Bitcoin. Other cryptocurrencies may have limited trading opportunities, which means when you want to sell; fewer buyers would be available to buy.
For instance, Bitcoin investment and Ethereum represent around 38% and 18% of the market, respectively, which makes these two coins a force to reckon with.
Other performing cryptocurrencies on the cryptocurrency market are listed below:
All of these cryptocurrencies are generated by a process known as mining.
You need to open an account on a cryptocurrency exchange or financial service provider before you can trade the cryptocurrency of your choice. If you have created an account with an exchange, you’d be buying or selling cryptocurrencies directly.
As for online financial service providers, you’d be trading on a CFD, which doesn’t give you the ownership of the cryptocurrency. It is also possible to exchange cryptocurrency on a peer-to-peer basis.
While there are a lot of cryptocurrency exchanges or online financial service providers on the cryptocurrency market, only a few of them offer top-notch trading services. As such, we have put together what you need to consider before choosing an exchange or financial service provider to trade with.
Once you make your first deposit, they run away with your money. As such, stick with a regulated platform to avoid losing your money.
There is a long list of common mistakes that traders usually make that cost them a fortune. You can also know these mistakes when you learn to trade cryptocurrency from an expert.
Below, we have put together some mistakes that you should try to avoid in order to make better trading decisions.
To be successful as a cryptocurrency trader requires skills and the use of trading tools. It takes countless hours to master the use of these tools and to sharpen your trading skills. If you're just starting, one rule of thumb is to trade with a demo account where you won’t get to deposit any money.
With a demo account, you will adequately learn how to trade cryptocurrency CFDs and also understand how to deploy trading tools when the need arises.
As a newbie trader, you should consider using a stop-loss to help you mitigate the risk of losing your money to market forces. Although, you could still end up at wrong side. But not using stop loss at all is the biggest mistake you could make regardless of your skill and trading knowledge.
Paying too much as brokerage fees could up your trading costs. To avoid this mistake, it is important to choose a financial service provider or exchanger with high liquidity, volume, and low fees.
This is another big mistake most new traders usually make. They are fond of picking a popular coin to trade without doing fundamental analysis. The problem with this practice is that on a good day, you could lose your money in a full swoop.
Lastly, as a newbie, trading too many cryptocurrency pairs will not only confuse you; it will overwhelm you when doing fundamental analysis. At best, you should start with just one pair in your first trades before trying more.
In terms of teaching newbies to trade cryptocurrency CFDs, there are only a few online financial service providers that can boast of delivering top-notch and up to speed crypto trading session. One of such online financial service providers is T1Markets. We boast of more than 300 assets, rapid price hike, and complex analytical instruments and tools.
T1Markets is a regulated online financial service provider by Cyprus Securities and Exchange Commission (CySEC), which you can reckon with to give you the required legwork to start bitcoin and other cryptocurrencies investments.
Plus, we have a mobile trading app that you can download on your smartphone to monitor your investment portfolio and trade any cryptocurrency of your choice on the go. If you want to diversify your investment by trading CFDs on forex, indices, shares, and metal, you can do so on our highly intuitive and user-friendly website.
We have dependable customer support that works round the clock resolving traders’ complaints. So, whatever your queries are, we will handle them with the highest form of professionalism. We have a long list of trading tools and indicators that will help you predict market behavior and also teach you to trade cryptocurrency CFDs.
Cryptocurrency trading on our website is quite simple. For a newcomer, here are the few steps you need to take:
Of course, you can trade cryptocurrencies on a CFD platform. However, there is a slight variation compared to trading your choice coin on a crypto exchange.
Cryptocurrency trading is one of the most exciting investment options in the 21st century. With the right information and trading tools, you can carve a niche for yourself in the cryptocurrency market. If you want to start trading with a reputable and reliable broker, your best bet could be to try the T1Markets trading platform.
T1Markets boasts of a wide range of cryptocurrencies CFDs for you to choose from. Whether your choice coin is Ethereum, Bitcoin, or Litecoin, we have got you covered. The company parades a team of technocrats who are knowledgeable about cryptocurrency investment. And is ever ready to give you the required legwork for you to start.
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