cryptocurrency trading is based on the price fluctuations of a cryptocurrency using an account to trade in CFDs or by buying and selling the currency that is the basis of trading in a trading platform.
CRYPTOCURRENCIES
A crypto is a virtual currency who can have multiple uses (and not necessarily paper currency).
Cryptographic interactions occur independent of banks and states (decentralized currency).
Warning : Cryptocurrencies are assets with very high volatility, especially small cryptocurrencies. you have to be careful if you to buy cryptos for the purpose of trading.
there is variety of cryptocurrencies with functions and applications distinct. However, those with a high market capitalization are currently minority. Among the big cryptos : Bitcoin, Ethereum, Dash, Litecoin.
cryptocurrency trading
cryptocurrency trading can be done by CFDs (derived product) through a business platform offered by a broker or through a business platform.
When you trade a crypto CFD (derivative), you do not own the crypto (underlying). Brokers offer access to the largest cryptocurrencies (Bitcoin, Eth, etc.); They generally offer between 20 and 50 crypto different. These are the cryptos it is no longer negotiated (high volumes), known and with the most big capital.
When you trade through an exchange you actually own the crypto. The exchange platform will give you access to small cryptocurrencies (low capital, low trading volume).
cryptocurrency trading
The trade consists of open a position in an asset buying or selling to make the reverse trade soon after to make a capital gain. This is generally a duration of court term.
To trade you must use a trading platform, I advise you start in demo mode to preserve your starting capital. In fact, trading cannot be learned in 5 minutes, you must to acquaint with the platform, find one or various techniques trade, repeat several trades per day, you accustom a stock market behavior of the assets you process, …
learning to trade It’s enough lengththe initial capital must be low to limit the risk of loss that could “get” you mentally. But with little capital it is hard trade well because it is more complicated to respect a good money managementthe margarine of maneuver is less than with significant capital (more than €50,000 for example).
If you want to live of the business plan several months or several years in front of you and this regardless of the traded asset.
As you may have understood, trading is difficult and more so when it comes to CRYPTOCURRENCIES. They present a high volatility especially small cryptos.
That being said, large cryptocurrencies are a bit more stable and predictable than ALTCOINS with little capital. technical analysis It’s enough trustworthy (important levels are respected) in Bitcoin, Ethereum, etc… and the volumes are present.