Bitcoin, Litecoin & Ethereum seem to be the new buzz words of today and I’m guessing you’ve already heard of them? These Cryptocurrencies are one of the most disruptive inventions of the 21st century and are completely revolutionizing the way we do business.
Now whether you’re motivated for profit or purely educational purposes is none of my business, But I’m glad you’ve taken the initiative to educate yourself on the subject of Cryptocurrency Trading.
So let’s get started
What exactly is Cryptocurrency Trading?
Why Cryptocurrency Trading is so ProfitableCryptocurrency trading is the art of generating a “PROFIT” by trading the price fluctuations of cryptocurrency pairs. In other words you’re betting whether the price of a cryptocurrency will increase or decrease over time. So will the value of Bitcoin weaken or strengthen against the united states dollar over the next week?
Dependent on what type of trader you are, there are two methods you can use to trade
Just like stock exchanges, there are crypto exchanges where users can create an account and buy & sell different cryptocurrencies. These exchanges, mostly, allow for the conversion of fiat currency to cryptocurrencies and vice versa.
So for example at the time of writing Bitcoins was valued at $4,692.29
That means that you would need $4,692.29 to buy 1 Bitcoin + Fees dependent on the exchange you’re using.
When buying a cryptocurrency on an exchange you will “own” the asset which can than be transferred to your digital wallet.
Trading on exchanges is more suited for investors who want to buy-and-hold a cryptocurrency over an extended period of time.
You may also trade cryptocurrencies using traditional Forex & CFD Brokers.
With CFD trading, you get the same exposure to the value of the cryptocurrency, but without actually owning it. Instead, you are buying a “contract” that tracks the price of the actual cryptocurrency.
The most obvious benefit of using a CFD broker is that you can trade with leverage. Dependent on the Leverage offered by the broker you can open positions of say $30,000 with only $1,000 in capital.
Trading with CFD Brokers is better suited for day traders looking to profit from the short-term price fluctuations of cryptocurrencies.
The remainder of this course is focused on the 2nd method of trading cryptocurrencies, using traditional CFD Brokers. However, if you’re more interested in actually owning & storing cryptocurrency than skip to our guide on how to become a bitcoin trader.
Great I’m glad to see you’re still here
eCommerce entrepreneur with a passion for cryptocurrencies.
Nov 2, 2017