The digital asset market never ceases to amaze. You definitely noticed that real-time cryptocurrency rates are rapidly changing, displaying the entire current situation on market. Not so long ago, China banned mining on its territory, and El Salvador announced the use of Bitcoin as legal tender. At the same time, the situation was changing under the influence of the pandemic, Russia's military aggression against Ukraine and the release of new technologies.
These events made it possible for millions of traders to earn. At the same time, the digital currency market continues to develop rapidly, which confirms the popularity of the cryptocurrency and its demand in 2023. If you want to become a part of the crypto world, then it is recommended to read a small guide on how to get started.
How to learn to trade cryptocurrency: the first steps in the world of digital coins b>
When working with coins and tokens, it is important to start with an understanding of the basic principles and terminology of the cryptocurrency market. Below are a few steps that can help beginner traders:
- Learn the key terms, terms and concepts related to the crypto market.
- Define your goals and trading strategy. For example, you may want to capitalize on short-term market volatility or invest in the long-term development of blockchain technology.
- Explore the market, paying attention not only to popular, but also promising coins and crypto exchanges where they are traded.
- Determine how much you are willing to invest in a particular crypto asset, and use this information to develop your strategy and manage risk.
- Start trading with small volumes to study the market and gain experience.
- Use a variety of analytical approaches to predict price movements and make smart buying and selling decisions.
- Follow the news on the economic and geopolitical situation in the world.
Digital currency trading is a high-risk and highly volatile type of investment. Therefore, it is always important to be ready to adjust your trading strategy, focusing on the current situation.
Where is it better to trade cryptocurrency?
Resources , where you can easily buy or sell digital coins, quite a lot. Among all the variety, there are 2 liquid solutions that can be useful for a novice trader. Initially, it is recommended to determine the purpose and subsequent use of the crypto asset.
If these are basic operations for exchanging fiat for crypto and vice versa, then it is better to focus on cryptocurrency exchangers. If you want to understand the principles of trading, active and passive investment, develop your own strategies, then you should take a closer look at crypto exchanges.
Pros and cons of exchangers
Resources of such a plan are platforms that allow users to buy and sell cryptocurrencies for fiat money or other cryptocurrencies. The main advantages of exchange services:
- Ease of use, high speed of buying and selling without the need to go through the registration and verification process.
- Transactions on exchangers are processed quite quickly and can compete with the most liquid crypto exchanges.
- Working with popular digital coins, so exchangers are one of the main resources where Bitcoin is traded.
The presented platforms also have a number of disadvantages, which are also worth to consider when choosing a method for conducting transactions:
- High fees are charged for the purchase or sale of crypto assets.
- Because most exchanges are not regulated, they may be less secure than exchanges, and become the target of cyberattacks or fraud.
- Restrictions on the volume of transactions, which narrows the opportunities for large investors.
- The level of liquidity is lower than the exchange level, which leads to a price difference between these services and the exchanges themselves.
And the main feature is limited functionality. Unlike diversified trading crypto platforms, exchangers provide only a basic optional set, excluding the possibility of using margin trading or rates to lower the price.
Advantages and disadvantages of crypto exchanges
Cryptocurrency exchanges are platforms for trading cryptocurrency between different users. The characteristic advantages of such trading platforms:
- High level of liquidity, which indicates the ability to quickly buy or sell a digital coin in the required volume.
- A wide choice of cryptocurrencies, taking into account popular and emerging projects .
- Low commissions offered by liquid exchanges.
- Variety of features including margin trading, down betting, API trading, passive investing, futures contracts.
Similar trading platforms are the most popular solutions
