In our last article, we briefly mentioned that we have been trading in the cryptocurrency market. Now we had several of you email us asking how you can get started. So here we go ahead and tell you the basics of cryptocurrency trading today in this article. But before we begin, we have to make it clear that we are not some recognized financial advisor, so don’t take this article as financial advice. And if you choose to invest in this market, please understand that this is a very high-risk market, and do not invest more than what you’re willing to lose. Also, check this bitcoin trading software here https://trustedbrokerz.com/trading-software/ .
Now, let us make one thing straight – this market is very volatile, and it is not uncommon to see 20, 30, or even 40 percent swings every single day; hence the risk is too high for the people who don’t know what they are doing. That means, if you’re on the right side of the trade, it’s pretty easy to see that you can make some very quick profits; however if you’re on the wrong side, then you can lose a lot of money very quickly as well. So, there are pretty much two ways you can go about doing this – you could be an investor, or you could be a trader. If you choose to be an investor, that typically means that you would purchase some cryptocurrency and hold on to it. Basically, you could be holding on to it for a few months or even a few years, and hoping the value of that cryptocurrency will appreciate. On the other hand, if you choose to be a trader, you mainly focus on short term profit, meaning you would purchase a cryptocurrency and utilize the volatility of the market to sell in and out of trades. In short, it goes down to the simple trading concept of buy low and sells high. Now, if you’re anything like us, you’re probably going to be a mixture of both. We do have some coins that we hold long term as long term investment, so we are not too concerned about the fluctuation in prices. However, there are other coins that we do trade short term, and we utilize that fluctuation to get quick profits. At the end of the day, it’s really up to you to evaluate what your goals are and what level of risk you’re willing to take.
When we are talking about cryptocurrencies, we basically mean Bitcoin. Because this cryptocurrency market pretty much revolves around Bitcoin. If you’re not familiar with Bitcoin, that does mean that you’re not familiar with the crypto concept at all, and in that case, you’re advised to go through our previous articles where we explained what crypto, Bitcoin, etc. are. Those are just a few short articles like this one, but they still should give you some nice info and give you a head start on your own research. In our next article, we will talk about trading bitcoin and other cryptos, so continue reading on this site.