A cryptocurrency is a digital commodity designed to function as a trading mechanism using cryptography to encrypt transactions on a traditionally publicly viewable ledger. In addition to creating new currency units, a Society ensures the validity of the transactions. Click here for more information about the trading of cryptocurrency.
Bitcoin became the first-ever cryptocurrency when it was launched in 2009, as you must already be conscious. You couldn’t exchange it with any other cryptocurrency though with only one coin accessible. It wasn’t until a few years later that people started to transact them when more and more cryptocurrencies were developed. The idea really is an easy one. You
trade one cryptocurrency for another, hoping the coin you are purchasing will increase in value. This concept is the same as the stock exchange in the real world.
Users need to use a cryptocurrency exchange while dealing. This is the way to match buyers and sellers. For instance, if you hold Bitcoin and want to sell it for Ethereum, an exchange will help you find a seller for Ethereum to trade with. Exchanges will charge you a fee that normally costs about 0.1 percent for each trade. Cryptocurrency trading is now truly popular, with coins worth billions of dollars being acquired and exchanged every day.
The “lucky” ones have done this with a huge amount of money, and there are plenty of people now selling cryptocurrencies as a full-time job. Experienced merchants, though, use lots of different methods to help them select the best coins at the right time. This can include software that helps investors evaluate historical price trends, and so on. But, everybody has
to start somewhere! So long as you don’t transact more than you can afford to lose, there’s no harm in trying.
Short-Term Cryptocurrency Trading
Short-Term Trading is where you purchase an asset, but you only plan to keep it for a short time. This can come from minutes, hours, days, weeks or even a couple of months! You could buy some cryptocurrency because in the short term you think it will rise in price. In which case, if you felt the price would go down again, you would then sell it for a quick profit!
The main advantage of short-term cryptocurrency trading is that it provides a really good chance of making high percentage gains. Cryptocurrency prices can almost double overnight, unlike fiat currency markets where prices usually do not move by more than 1 percent every day!
Large volumes of trading are important because it means that you will always find a buyer or seller! It simply means that a large volume of currency flows into and out of that cryptocurrency.
Long-term cryptocurrency trading: Did you ever hear the acronym ‘ HODL’? Okay, if not we’ll assume that you’re totally new to the crypto space! No, it’s not a word you’ll find in the dictionary, but undoubtedly you’ll hear it in crypto forums and chat groups! “HODL” is a slang word which means keeping a long term cryptocurrency instead of selling it. The real meaning is “Hold on for dear life” Long-term crypto-trading typically means carrying a coin for a year or more. The theory is that although there will always be fluctuations, over the long term the price will grow by a large amount.
One of the key benefits of long-term cryptocurrency trading is that it’s easy and requires a little time. You don’t have to understand complex market charts or diagrams because you’re just looking for a long-term hold of your coin. Unlike short-term trading, where you need to spend time constantly checking the cryptocurrency rates, you can do so in your spare time.
It’s easy, once you’ve purchased your coin, there’s nothing you need to do but wait!