Cryptocurrencies

Our top five tips for cryptocurrency trading

Cryptocurrency trading doesn’t have to be a daunting task when you’re armed with the right information. As the market begins to move upwards, the value of crypto may just reach an all-time high. Now is a better time that ever to get involved with cryptocurrency trading. It could even be a profitable venture for you.

To help you get started, we’ve rounded up our top five tips for cryptocurrency trading. We’ll help you to understand the bigger picture, how to trade safely on exchanges, and how to make the most of different cryptocurrency trading strategies.

 

1. Discover what cryptocurrency trading is and how it works

Before you start making investments and signing up to exchanges, it’s important to understand what cryptocurrency trading is. In some ways, it’s similar to trading traditional stocks. But cryptocurrency is a lot more volatile and exposes you to many more risks.

In this guide, we break down the basics of cryptocurrency trading. From wallets to exchanges, and which ones to use, we’ve got you covered. We help you to understand some of the terminology involved in trading, how exchanges work, and which cryptocurrency pairings are the most common. Access the guide now to discover everything you need to know about trading.

 

2. Understand the unique benefits of peer-to-peer trading

Creating a peer-to-peer electronic cash system was one of the central philosophies behind the creation of Bitcoin. This system is decentralised, eliminating the need for intermediaries to be involved with any processing of payments. There is no single server, location, or authority. In cryptocurrency, this allows buyers and sellers to deal directly with one another.

It offers many benefits including privacy, fair pricing, and better security. This type of trading offers a level playing field for all involved in cryptocurrency transitions. While trading strategies continue to evolve, peer-to-peer remains one of the most popular methods as it aligns with the original purpose of crypto. To discover further benefits, read this guide.

 

3. Protect yourself against cryptocurrency scams

Due to its digital nature, cryptocurrency is vulnerable to cyberattacks. They come in various guises and severity, so you need to be prepared for them all. That’s because there’s a lack of regulation in the industry and any losses can be particularly hard to reverse. In our dedicated guide, we outline the different types of scams to look out for.

Pump and dump schemes are a particular scam to watch out for, as they artificially inflate the price of an asset to encourage investment. This investment will eventually be recorded as a loss once the coin in question is dumped. Meanwhile, there are a few illegitimate brokers and exchanges operating in the space. We reveal the signs to look out for!

 

4. Avoid cryptocurrency trading bots

Bots can help traders to participate in the market around the clock, but there are a number of drawbacks to using them. They’re not for beginners, they require a lot of tuning, and they’re also an unnecessary expense. These three reasons for avoiding cryptocurrency trading bots will help you to stay protected in the market.

It’s crucial to remember that cryptocurrency trading bots don’t create good traders and they don’t minimise the risks traders are exposed to. Trading bots also take away your freedom of choice when it comes to using exchanges. To find out how, read this article.

 

5.Download this definitive guide to cryptocurrency trading

Don’t have time to read all of the information above? Don’t worry! We’ve collated everything you could possible need to know about cryptocurrency trading in our definitive guide.

It gives you in-depth information about getting started, how to stay protected, and how to make the most informed trading decisions.  We give you examples of some of the most widely used trading strategies and the signals to look out for when participating in the market. Download it here!

Shannon Greaney

Shannon has five years’ experience delivering content strategies for B2B clients including Microsoft, IBM, BP, Tech Data, and Centrica. Having spent this time writing, editing, and leading a team of journalists, she loves delivering content that solves problems and outlines the latest industry trends. Specialising in everything from blogs to email campaigns, she’ll be managing the content production at Coin Rivet. Outside of work, she has a real love for reading and eating.

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