Crypto trading is one of the fastest ways to double your money or even 10x your money, the ROI on Crypto Trading can be very insane! Multiplying your money can’t be any easier or safer than this. But it can also be one of the fastest ways to lose your money if not done correctly.
This article will give you a clear introduction to crypto trading, which will give you an outline of What is crypto trading? how does it work? and is it for you or not? So without wasting any time, let’s get started with our beginner-friendly article!
What is Crypto Trading?
Crypto Trading is a form of trading in which we open or close trade positions based on price direction of a particular cryptocurrency against other currencies like the US dollar or any other cryptocurrency. What it simply means is exchanging one currency for another, for e.g., if we will buy (bitcoin from fiat currencies) or sell (sell bitcoin to get fiat currencies or other cryptos) a particular cryptocurrency against any other currency. There are trading pairs, for e.g., BTC/USD, in this trading pair, if we buy bitcoin, we will use our US dollar to buy bitcoin, so we get bitcoin in exchange for USD. Selling is the opposite, in that we will sell bitcoin to get US dollar instead.
In the above paragraph, we learnt about spot trading, which is profitable in the long term, but if you want to magnify your profits and earn way more than spot trading, then there is CFD (Contract for Difference) based trading, in which you can predict the price will go up or down and also magnify your profits with the use of leverage, let’s discuss more contract trading now!
In contract based trading, if you buy, it means you predict the price will go up, and if you sell, you predict the price will go down. Here we can use leverage, which means borrowing money from the platform that we are using to trade, for e.g., let’s say you start a trade for $10 with 10x leverage, then you will actually trade with $100 and make more profit, with 10x leverage if the price goes up by 10% you can get a 100% profit! But at the same time, if the price goes the opposite of what you predicted, 10% will rip all your money off! That’s why leverage trading must be done very carefully to be safe.
Now, hopefully, the above two paragraphs would have given you a brief overview of What is Crypto Trading?
Why should you trade Cryptocurrencies?
Over the past decade, cryptocurrencies have been rising in popularity and their value. More and more people every day are starting to know about crypto, and the future potential of blockchain technology is said to be very bright! Trading crypto is a great way to use crypto to our benefit. We can make more profits with trading than we can make with holding. Also, Crypto Trading can potentially give you a very nice side income or even a full-time income if the correct crypto trading strategy is followed. Even a $100 investment can get you more than $15 per day with leverage trading if the correct strategy is followed responsibly. Trading Crypto is better than trading stocks or forex as crypto has god way higher returns compared to stocks or forex. Crypto market is a very volatile market. If you are able to correctly analyze this technology, you can really use this to become rich in the fastest way. That’s why crypto trading should definitely be a part of your investment portfolio.
Is Crypto Trading any good?
The answer to this question is a BIG YES! Because crypto trading has probably one of the highest ROI (Return on Investment) compared to many other investments like real estate, stocks, and forex. Crypto is the future of money, blockchain technology itself is a very big thing, even holding crypto is awesome and trading it can make you earn even 10x more than you can earn with holding. Let’s say you start a trade with 10x leverage, and next year the price of that cryptocurrency goes 3x, then you make a 30x gain, but if it goes down 10%, you use all. That’s why, it’s better to trade in the daytime and keep closing trades in a short period of time than holding with leverage.
What are the most traded Cryptocurrencies?
The top 10 most traded Cryptocurrencies in 2022 are:
- Bitcoin (BTC)
- US Dollar Tether (USDT)
- Ethereum (ETH)
- Binance Coin (BNB)
- US Dollar Coin (USDC)
- Binance US Dollar (BUSD)
- Ripple (XRP)
- Cardano (ADA)
- Solana (SOL)
- Dogecoin (DOGE)
Where can you Trade Cryptocurrencies?
Buying or selling cryptocurrency simply means exchanging one currency for another, and this is done with the help of crypto exchanges. They are a place where we can buy, sell and trade cryptocurrencies. There you can simply fill out a form to create an account and start trading easily. You can also use your fiat money like us dollar and then convert that to any crypto you want, or convert any crypto to another crypto. The Top 5 most famous cryptocurrency exchanges in the world are:
So, in the above article, we learnt how we can swap one currency for another with crypto trading, How to make money from crypto trading, where to do crypto trading, and is it useful or not. Still, if you have any questions, then definitely make sure to comment down, I will try to reply to every comment below! Comment here-
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