Cryptocurrency
The crypto-currency market, although young, regularly makes the headlines and has become an integral part of the financial asset landscape. Many institutional investors are now trading this market or offering crypto-related services, and independent traders are also enjoying the many benefits of this market.
Below, you will find crystal clear information about the cryptocurrency market so that you can get started in the best possible conditions.
The crypto-currency market, although young, regularly makes the headlines and has become an integral part of the financial asset landscape. Many institutional investors are now trading this market or offering crypto-related services, and independent traders are also enjoying the many benefits of this market. Below, you will find crystal clear information about the cryptocurrency market so that you can get started in the best possible conditions.
Cryptocurrencies
What is a cryptocurrency?
Cryptocurrencies are digital assets based on blockchain technology, and do not depend on any central authority, being managed and governed via the principle of distributed ledger.
More than 10,000 different cryptocurrencies are on the market, but the most important is Bitcoin, which accounts for about half of the market capitalization.
Although young, the cryptocurrency market has quickly become very popular with traders, primarily because of the volatility that creates many opportunities.
CRYPTO TRADING
What are the benefits of crypto trading?
In the long run, many believe that cryptocurrency is an asset with a bright future and that they could potentially replace traditional currencies or at least evolve alongside them as equals. Finally, although it is not always obvious, Bitcoin and other cryptocurrencies have often been seen as hedging assets that move independently of the mainstream markets, which has earned BTC the nickname of digital gold.
Another significant advantage of the crypto market is that it is open 24/7. Thus, it is possible to trade cryptocurrencies at any time of the day and even during weekends, which is very convenient for amateur traders who also must commute to work.
How does crypto trading work?
Trading in the crypto market is the same as
in other financial markets. It’s all
about analysing the market to find
opportunities to buy crypto currencies, see
their price rise, and thus profit. As is the
case in other markets, it is also possible
to short crypto-currencies to take advantage
of a downward trend. It is, therefore,
possible to profit from cryptocurrency
trading whether the trend is up or down.
On a more practical note, crypto
traders rely heavily on chart analysis to
make decisions and spot important
thresholds. It’s also essential to
keep up with the latest news in the
cryptocurrency market to make profitable
decisions.
To practice trading
in the cryptocurrency market, traders also
need to open an account with a broker, which
will allow them to access a trading platform
on which they will perform their analysis
and place their orders on the market in
real-time.
CRYPTO TRADING
What is the difference between trading cryptocurrency CFD and trading cryptocurrency?
- On the other hand, trading cryptocurrencies via CFDs is done via an online broker's platform, just as simply as on traditional markets like the stock market or forex. Rather than actually owning crypto-currencies, with the risks and complications that this entails, crypto CFDs allow you to profit from the fluctuations of crypto-currencies much more simply. From a short-term trader's point of view, trading in crypto CFDs is, therefore, the best choice.
- In addition, online brokers that offer crypto CFDs also provide access to other markets such as stocks, forex, and commodities, allowing you to expand your trading opportunities and diversify your investments as much as possible.
- Direct trading in the cryptocurrency market can sometimes seem complicated to beginners, and it is possible to make costly mistakes. In particular, you will need to use a crypto wallet, and not all of them are very user-friendly, not to mention the risks related to hacking and the security of your crypto currencies. In addition, the crypto exchange platforms that offer to trade directly on the crypto market do not offer any other assets than cryptos, which excludes any diversification of your investments.
INSTITUITION
What impacts the price of cryptocurrency?
Many factors can influence the price of
cryptocurrencies. In the case of Bitcoin, by
far the largest cryptocurrency on the
market, macro factors such as economic
trends or central bank monetary policy are
of considerable importance.
Regulation is also a factor that
can largely influence cryptocurrencies,
either up or down. Indeed, the very young
crypto market is still poorly regulated, and
the regulatory framework for its development
is still in the making and can change
quickly, for better or worse.
Finally, as far as other
cryptocurrencies are concerned, they can
also be influenced by news that affects them
directly, such as the inclusion to new
platforms, the development and improvements
of their blockchains, or their marketing
partnerships.
How can I start trading crypto with Traze?
Starting to trade cryptocurrencies with the online broker Traze is quick and straightforward. The fully online registration process only requires filling out a form and answering a few questions. You will also need to download the trading platform and fund your account using a credit card or another payment method.
Once your account is set up, you can immediately analyse the market using real-time charts provided by the platform, and begin trading cryptocurrencies in no time.
How to trade crypto?
If you are a beginner in crypto trading, there are many ways you can learn, both about how the crypto market works and about trading techniques and methods.
For example, the Traze Academy offers many tutorials on various topics such as technical analysis, the trading platform, or the functioning and specifics of the cryptocurrency market.
But experience is the best teacher, and it is also recommended that beginners in cryptocurrency trading take their first steps with a Traze demo account to practice without any risk of losing money.
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