We understand that it can feel overwhelming to have to learn everything about a new market, even as an experienced trader. Therefore, we thought we would guide you through the process and provide you with the information you need to start trading cryptocurrencies.
Getting Started Trading Digital Currencies
It can be daunting to trade digital currencies if you have never done it before. Right now there is a lot of talk about how investing in cryptocurrencies is not recommended due to their volatile nature, and many people are claiming that Bitcoin is a bubble. Please don’t let that scare you away.
There is, of course, a risk involved in trading cryptocurrencies just like there is a risk involved in trading any securities. However, similar to all other forms of trading you can minimize your risk. You can increase your possibilities and decrease the level of risk by educating yourself on the subject and making sure you adequately understand how the market works.
To help you begin, we have written a guide about how you can get started trading cryptocurrencies. The guide is divided into three parts based on the questions we most often hear about trading with digital currencies. How, where, and when?
How To Trade Cryptocurrencies
The first thing you have to learn before you can start trading with cryptocurrencies is how to do it. Cryptocurrency trading works exactly like other forms of trading – you buy an asset that you later sell for a profit. However, it is not really that simple.
The traditional way of investing in cryptocurrencies is to buy the actual currency and store it in a wallet for digital currencies. Next, you wait for the currency to increase in value so that you can sell it and make a profit. By using this method you are in control of your currencies and in most cases, you can use them as methods of payment. For example, you can buy products and services online and in real life using Bitcoin.
It is most common to store cryptocurrencies in a wallet when you are looking for a long-term investment. You can read more about wallets for digital currencies in the next section.
Where Can You Buy Cryptocurrencies?
The most important question to answer before you start trading cryptocurrencies is where you should invest in them.
It is important that you use an established and respected service that offers the digital currencies that you are interested in. If you start using an unreliable broker you run the risk of getting ripped off and losing your money. Fortunately, we have the experience needed from the business to recommend some of the best companies and services to use.
Remember that it is okay to use more than one service. In some cases, you might be forced to use multiple services, particularly if you’re looking to trade several digital currencies that aren’t available from the same broker.
As we already mentioned, there are two types of services you can use to trade cryptocurrencies, either wallets or brokers. Let us explain the differences further.
In general, cryptocurrency brokers offer trading opportunities with more assets than just digital currencies. In other words, most brokers can be used to trade regular currencies, commodities, stocks, as well as digital currencies.
When you’re looking for a broker there are certain factors that you should consider such as if they have a license and are regulated, how their reputation is among other traders and brokers, what platforms they offer, etc. As you might understand, it is a time-consuming project to review many brokers which is why we propose that you use the brokers that we recommend.
We have spent years searching the internet high and low trying to find the best brokers. When we find a really good one, we recommend it here on BullMarketz. We have also written detailed reviews about all of the recommendations so that you can find all the necessary information in one place.
Our top choices for cryptocurrency trading right now are:
- Trade.com is a broker offering more than 2,000 assets on a handful of markets, including the possibility to trade Bitcoin, Ethereum, Litecoin, and Dash.
- IQ Option has been one of the leading binary options brokers for many years and recently they started focusing more on digital currencies. In the beginning of next year, IQ Option will launch a comprehensive network called the Open Trading Network that will connect all cryptocurrencies and companies.
- 24Option used to be one of the most respected names in the binary options industry. Not that long ago they decided to rebrand themselves as a CFD broker, and today they provide access to some of the world’s leading cryptocurrencies.
- eToro is a well-known and popular broker that runs the largest social trading network in the world. Lately, they have started offering digital currencies and have some unique products such as cryptocurrency obligations and funds.
A wallet for cryptocurrencies has many similarities to a regular wallet but there are also several differences. The biggest difference is that a wallet for cryptocurrencies is digital and that you don’t use it for regular money.
When using a cryptocurrency wallet you buy the actual currency and then you store it in the wallet. Cryptocurrency wallets can either exist in a digital form on a website, as a downloaded desktop program on your computer or smartphone, or as a separate hardware. You can read more about cryptocurrency wallets in the section we have dedicated to these products. Otherwise, you can opt for one of the following wallets recommended below:
CEX is a cryptocurrency exchange that you can use to trade Bitcoin, Ethereum, Dash, and Zcash. The wallet is run by a well-established company that has been operating in the cryptocurrency industry since before digital currencies were a thing. They are known for developing innovative products and are a great choice for anyone looking to trade cryptocurrencies.
IQ Option is, as we mentioned above, currently developing a network that will connect all digital currencies under the same roof. A part of that network will be a world-leading wallet for digital currencies.
When Should You Buy Cryptocurrencies?
That is the million dollar question that we are all trying to figure out, please let us know if you find the answer! Unfortunately, there is no exact answer to the question. However, there are a few methods that you can use to find the best opportunities.
In order to use this method you first have to learn how the market works and what affects it. Then you have to learn how to use that information to make well-informed decisions about your investments. Note that due to the volatile nature of the assets, the cryptocurrency market is very different from other markets and it requires a great understanding from you as a trader.
The most important step in this process is to stay updated on the latest events and developments on the market. The best way to do so is, of course, to read news related to digital currencies. In order to help you with that, we follow the market closely and report on all the latest news right here on the website.
We have a weekly cryptocurrency update that we call Let’s Talk Cryptocurrency. The segment contains all the information about what’s happened in the industry over the past week including our thoughts about what is about to happen. You can also refer to our news section for more of the latest trading news.
What Cryptocurrency Should You Invest In?
The three questions we answered above are completely insignificant if you don’t know what currency you would like to invest in. Today, there are thousands of digital currencies to choose from and we have done our very best to guide our readers through this jungle.
We provide detailed descriptions about the biggest cryptocurrencies on the market, as well as shorter descriptions about the smaller less significant, but nonetheless interesting, digital currencies.
If you want to trade Bitcoin there is a page for that, if you’d rather invest in Ethereum then there is a separate page for that, and if you prefer to invest in IOTA or any of the smaller currencies we have pages for that too. You can find a complete list of the cryptocurrencies we cover in our top menu.
Buy Cryptocurrencies Conclusion
A well-placed long or short-term investment in one of the world’s digital currencies can prove to be both lucrative and educational. However, it is very important that you know what you’re doing before you start trading. Cryptocurrency trading is associated with high risk so you need to be careful.
We recommend that you read through all the information we offer about digital currencies to make sure that you have all the knowledge needed before you get started.
When you’ve finished with this page, we propose that you continue reading about separate currencies before you take a look at our top list of the best cryptocurrency brokers and wallets in the world. After you decided what currency you want to trade and where you want to trade it, we recommend that you start returning to BullMarketz daily to get the latest information and news from the industry.