After reading our guide on crypto jargon and a beginner’s guide to trading Bitcoin you are probably ready to invest in cryptocurrency for the first time. At this exciting time, it is a good idea to consider these seven facts which can help you achieve your trading goals.
Cryptocurrencies have made the headlines many times due to their massive price fluctuations over a short period of time. Price swings are extremely common, especially amongst newer Altcoins, although even main coins, such as Bitcoin, are known for massive gains and losses. This volatility is due, in part, to the market being unregulated by a central entity.
Unfortunately, this industry has not been immune to criminals, and there are numerous cases of hacks and fraud. As a responsible investor, you should seek to protect your keys and only use reliable, trustworthy cryptocurrency exchanges to do business with. Consider storing your digital currency in offline wallets, and never share confidential information, such as user details or passwords, with third parties.
If you’ve got experience trading stocks and other, more traditional financial instruments, you need to be aware that cryptocurrencies don’t normally follow the same patterns and rationale. Rather than being affected by performance data and market caps, the value of digital currencies tends to vary depending on news stories. This is why you should always stay up to date with the latest cryptocurrency news.
The basic investor rule of thumb to buy when the price is low and sell when it’s high applies to cryptocurrencies too, up to a certain point. Digital tokens are such a new instrument that it is difficult to gauge when a price is actually high or low. Historical data is extremely limited, especially compared to traditional instruments. You should avoid panic buying or selling, as you could result in later regret. Instead, give time for the currency to level-off temporarily.
It is important that you understand that cryptocurrency is classified as a high-risk investment, and you should only invest a portion of your capital in it. Just like any other financial instrument of this risk, there is a high potential for rewards, however, you should never invest more than you can afford to lose.
You are probably aware that there exist many different currencies. You’ve definitely heard of Bitcoin and perhaps Ether and Litecoin. In fact, there are over 800 different ones, and this number is increasing. Different currencies are created with different purposes, and you should read extensively about the currency you intend to invest in.
The more time passes, the higher the number of governments and international bodies embrace cryptocurrencies. Legislation, regulation, and oversight are increasing, as is entrepreneurial innovation in this sector.
Shapeshift is a popular instant cryptocurrency exchange which allows users to trade a variety of cryptocurrencies. As it gained popularity it ended up becoming a victim of its own success, experiencing a rising number of issues and even multiple hacks. Today, Shapeshift has improved its services, yet its reputational damage lingers, with many looking for […]
When you’re an experienced investor who understands the movements of a certain market, you may wish to broaden your horizons and try more advanced trading products. Contracts for Difference (CFDs) could be one such product for you. Working with an online broker, you can trade CFDs in a variety of markets and countries, with a […]
Contracts for Difference, better known as CFDs, are a trading product which is ideal for speculating on financial markets. Best-suited for experienced traders, understanding what CFDs are and how they work can be somewhat confusing. This detailed guide will explain all you need to know about them, and if they are the right trading product […]
Binance is one of the largest cryptocurrencies in the world, offering a range of features at competitive prices. The exchange, which is based in Malta, accepts users from around the world and is a much-loved platform by the crypto community. Binance: An Overview Trading over 100 different cryptocurrencies, Binance can cater to traders looking to […]
Coinbase is one of the world’s largest cryptocurrency exchanges, trusted by millions around the world. It is based in San Francisco, USA, and it is considered to be the largest Bitcoin broker today. Apart from being a traditional centralised exchange, Coinbase encompasses several other cryptocurrency-related services, such as a wallet and developer API. Due to […]
Short selling Bitcoin and other cryptocurrencies is a way to make money when the value of a coin drops. It is an advanced investment option, better suited to experienced traders due to the high risks involved. This guide will show you five different ways to short sell Bitcoin. What Does Short Selling Bitcoin Involve? Short […]
Although cryptocurrencies were first invented by Nakamoto as a way to facilitate payments and get rid of financial intermediaries, they quickly evolved into trading assets due to their high volatility. As a result, asset and forex traders from traditional markets began trading crypto, as a way to turn a profit. While there are many ways […]
The constantly developing cryptocurrency industry is leading to new opportunities for you to make money with Bitcoin. Often likened to the goldrush which hit California in the nineteenth century, Bitcoin has generated some great returns for the more astute amongst its adopters. Today, there are many creative ways to make money with Bitcoin, and you […]