Cryptocurrency is one of the lucrative investments of this hour, if you want to countyourself in this virtual currency then invest your funds in Bitcoin, Ethereum or Ripple.Although these investments make you pay a significant premium, you can have simplified ownership, a transparent transaction process, and better exposure than traditional investments.
For cryptocurrency trading, you can choose two possible ways, such as an exchange or a Forex broker. If you choose an exchange, then you have to buy and sell these digital currencies directly, whereas, with a Forex broker, you have to by a CFD. In exchange trading, you have the complete ownership, but the Forex broker doesn’t
offer you the ownership for your digital assets. For this reason, many traders prefer to exchange instead of Forex brokers to have better transparency and easiness.
Mechanism of Cryptocurrency Trading
The mechanics of cryptocurrency trading is dependent on the marketplace or exchange and somehow similar to stock market trading. The trades materialize among the buyers and sellers and make a call on the orders by fixing a specific price for trading. Different types of orders facilitate cryptocurrency trading.
- Market Order
- Limit Order
- Stop Order
- Copy Order
A market order is all about executing a trade with the best possible current market price.
In a limit order, you can trade at a specific price; as a trader, you can set the limit buy and limit sell for executing your trading.
Stop Order is more like a conditional market order, whereas a trader can buy or sell your assets when it touches a specific price range. There are two types of stop orders, such as Buy Stop order and Sell Stop order. The Buy Stop denotes trading right above the market price, whereas the Sell Stop order is all about placing a trade order right below the market place.
Copy order is quite suitable for beginners to trade effectively. In this, you can copy the trading of all the leading cryptocurrency traders to have all the convenience in trading.
Most people around the world who attempt to dive into cryptocurrency trading lose money in no time due to a lack of research and proper preparation. Otherwise, it is still a money-spinning platform to manifold your growth and wealth.
It was the Christmas when we had a rendezvous of old friends, whom I met after years. Our conversation ends with the emergence of cryptocurrency, but that was not the end for me. It was the foundation for me to jump into the exciting world of cryptocurrency. After extensive research, I made an investment of $400 on Bitcoin in 2017, and within a few weeks, it started trading at $4000.
At one point in time, I was thinking to cash out that, but due to some holy call, I stayed away from that. In this way, the figure reached up to $100,000 within a time frame of six months. There is no doubt that I was a beginner, and I had not any professional experience in trading. But I had done a lot of homework and grasped some knowledge on investment analysis; I think that worked tremendously.