Nowadays, many are the people entering the cryptoworld. In this world, there are some concepts that are new and not so understandable for them. Between these words, we find crypto trading. Since it’s not only a concept, but also a way to get coins, it’s important that those who enter this world know its meaning. That’s why in this article we’ll explain a little more about what’s trading. We hope it helps.
First, we can say that crypto trading is the exchange between a crypto and another one. Explained in other way, is the market study with the goal of stablishing the future value of a coin and making the buying and selling of this to get more benefits. The most common way of trading is through exchanges, but it’s not the only way.
This way, we can say that trading is the art of negotiating the price of a crypto and speculate its value. This not only exists in the cryptoworld, but it’s in all financial markets since decades ago. Example of this is the stock exchange.
The only difference between the stock and crypto trading is that the last changes its value quicker than the stock, since its a more volatile market than the first, that has already been regulated by the Law.
Currently, there are 3 main ways of trading. The first is through a direct negotiation, where a person (seller) sets a price independent of the market value, and other person (buyer) pays the price to get the amount of cryptocurrency being sold. Even when you can find better prices than in exchanges, you don’t have the backup nor the security level that the exchanges have.
The second way is through exchanges, where the negotiation for buying and selling cryptos is done through these platforms. The process is similar to the first, but you get more security than doing it making direct purchases. It’s important to know that these websites charge a fee for the making of the transaction.
Lastly, we have the negotiations done in cryptocurrency selling platforms. Here, the platform fixes a specific price and the purchase is done without negotiation. This tends to be the most expensive way to get cryptos, since its sold at a higher price to the market, and the platform charges a fee when you decide to take out the cryptos from their platform.
It’s not necessary to make a high investment on cryptos to start trading. With little amounts on both cryptocurrencies and exchange coin, we can start in this world and learn little by little how the buying and selling system from the exchange we’re in works.
There are companies that are dedicated to offer packages with systems that alert in case there are cryptocurrencies that can go on the rise in a determinated period of time, Either way, it can give the price which we can buy or sell and how to do it. Of course, it’s going to depend on the type of company that you use the amount of certainty that the alerts and information delivered have.
You don’t need to be an adult (but we recommend) nor having permissions from some company or exchange to trade. With only a minimal capital in cryptos and internet access, you can enter this world easily.
Did you like this article about crypto trading? Comment below!