Bitcoin is the first ever crypto coin to come into existence, but slowly and gradually many others coins were released. The idea was simple to trade coins in fiat money or exchanges them with one another. You trade a cryptocurrency for money with the hope that its value will increase in the coming time. But in order to trade, people need a crypto exchange. This is where buyers and sellers come. Almost all crypto exchanges and brokers charge you a small fee for doing it. With the rise in popularity of cryptocurrency, more and more people are turning into professional traders. But first you should know about the two types of cryptocurrency trading available:
Short-term trading:
Short-term trading is when you plan to hold a crypto coin for a short time period. It could be for minutes, hours, weeks or months. You buy a cryptocurrency with the idea that its price will rise in the short term. Some of the benefits of short-term trading are:
- It offers a good opportunity to earn high percentage profits. Unlike forex, where prices don’t move more than 1 percent every day, crypto can literally double your amount overnight.
- With large trading volumes, you will always have buyer or seller.
Long-term trading:
Are you aware of the slang word “HODL”? Well if not then you are not aware of the crypto world. It means to hold a cryptocurrency for longer time period rather than selling it. It says “Hold On for Dear Life”. Long-term trading means holding a coin for over a year.
The basic idea behind it is that though crypto world is always volatile but the prices should rise in a large time period. Some of the benefits of long-term trading are:
- The major benefit of long-term trading is that it is simple and doesn’t require a lot of technical analysis. You don’t have to go through complicated trading charts as you just have to hold the coin for long term.
- In short-term trading, you spend your time constantly checking the prices of crypto, but in long –term trading, you spare yourself from this problem.
- Another benefit is that you don’t need too much money to commence. You can buy small number of coins as and when you have some spare money.
- It also safeguards you from the stress of market volatility.
Now that you know about the two kinds of trades, you should pick the one feasible for you and sign up with Pibexa trading platform. The crypto trading platform helps you with short-term and long-term trading. It offers you three account types- micro, standard and premium. If you are a beginner, then choose Micro and if you are an expert, then sign up with Premium. The portal provides quality trading services and amazing support to all its clients. No matter you want to trade on smartphone or on desktop, you can easily access the platform anywhere with great ease. It provides you access to the best analyst recommendations to know when and where to trade.