Whether someone is into commodities, trading in stock, or shares, or buying and selling goods, anyone can profit from cryptocurrency trading by understanding how to trade cryptocurrency.
Doing so can usher in significant profits and financial freedom, as well as make cryptocurrency trading a viable part of a diverse and lucrative investment portfolio.
Known for being a fast-growing and highly lucrative industry, in this guide, we’ll take an in-depth look at the global history of cryptocurrency trading, its benefits, and the most common ways that people trade.
We will also highlight the top 10 best ways to trade cryptocurrency and why Finxo is the preferred choice for most traders.
How to Trade Cryptocurrency: A Brief History
Trading in cryptocurrencies started with the birth of Bitcoin – the first electronic currency invented in 2009 by an individual or a group of individuals.
They called themselves Satoshi Nakamoto, and their creation seemingly heralded a new era for finance.
The currency’s decentralized financing, based on a groundbreaking technology known as blockchain, soon found its first adherents, who traded Bitcoins on enduring informal webpages and forums.
As its fame grew, the first exchanges showed up, the most famous being Mt. Gox.
Over the coming years, thousands of new cryptocurrencies were launched, each building on the existing technology in different ways, and suitable for a wide range of potential uses.
The new project behind Ethereum featured ‘smart contracts’, which enabled the technology to be used for an even wider range of applications, from decentralized autonomous organizations to prediction markets.
Finally, as the number of different cryptocurrencies continued to multiply, sophisticated trading platforms and tools were built that made trading cryptocurrencies easy (and as accessible) to learn how to trade cryptocurrency for anyone interested.
Benefits of Trading Cryptocurrencies
How to Trade Cryptocurrency: Financial Freedom
Cryptocurrency trading can make you a lot of money. If you know what you’re doing, you can capitalize on the volatility of the market.
How to Trade Cryptocurrency: Diversification
As an asset class, cryptocurrencies can diversify a portfolio and lower risk.
How to Trade Cryptocurrency: Accessibility
Anyone with access to the internet can participate in the trading of cryptocurrency, and the technology can be used by anyone from virtually any location in the world.
How to Trade Cryptocurrency: Innovation
The technology behind cryptocurrencies is continuously evolving, offering new opportunities and trading strategies.
How to Trade Cryptocurrency: Popular Methods
Spot Trading
Spot trading is buying and selling cryptocurrency for ‘spot delivery’ eg, immediate delivery. This is the simplest form of cryptocurrency trading out there.
Margin Trading
Margin trading – borrowing money from a broker to trade – enhances the trading size and magnifies potential profit but also risks.
Futures Trading
In the first such instance of futures trading, contracts to buy or sell a cryptocurrency at a future date and price allow them to hedge or speculate on the price of the asset, without buying it.
Day Trading
Day trading is the act of buying and selling cryptocurrencies on the same day in order to make a profit from short-term price changes.
Swing Trading
Swing trading harnesses this movement, typically for a gain over a period of days or weeks; it allows more freedom than day trading.
How to Trade Cryptocurrency: Top 10 Ways
Spot Trading: Buy or sell cryptocurrencies on an exchange, such as Binance, Coinbase or Finxo, and delivery is almost immediate. In this simple and basic method, cash is directly exchanged for the underlying digital asset on the exchange, making it a user-friendly, tangible trading vehicle.
Margin Trading: Trading with leverage is a good option for returning a high percentage of gains on your Crypto because you can trade with the money of other people besides your own capital. To do this, enter into a contract with a trading platform such as BitMEX, Finxo or similar.
Futures trading: Trade cryptocurrency futures on CME or Finxo to bet on future price movements. Futures contracts require the buyer to purchase (or the seller to sell) an asset on a certain date at a set price, letting traders hedge or speculate on an asset.
Day Trading: This involves buying and selling every day with advanced platforms that provide the most current tools, such as FinXo. Day trading is about making an informed decision in the short term, in addition to having a thorough understanding of market trends and expert knowledge of technical analysis.
Swing Trading: Use technical analysis to identify medium-term market direction to trade According to investment bank SunTrust Robinson Humphrey, the key to successful day trading is having the ability to analyze the markets in a calculated manner and make reactionary trades with patience. Swing trading, on the other hand, is more flexible because the trader will capture price movements over several days or weeks.
Arbitrage Trading: Buy on one outlet at a lower cost, and sell on another exchange for a slightly higher price. The differential story with cryptoasset trading is the same. Trading in this way is risk-free, as both sides of the trade are guaranteed to have occurred.
Automated trading. Leverage trading bots and/or automated trading algorithms to enter and exit trades based on specified criteria.
You can remain completely in the background here; as long as you have the criteria set up, the bot will execute the trades for you, 24/7, with little to no emotional intervention, or management thereof.
Peer-to-Peer Trading: Trade with other people using LocalBitcoins and similar services. P2P trading involves trading cryptocurrencies between users, which can offer more flexible payment options and pricing. Shop using gift cards: There are websites that will accept your gift card and convert it to Bitcoin.
Over-the-Counter (OTC) Trading: Trade large amounts off-exchange to avoid moving the market price OTC trading is most often used by institutions or high-net-worth crypto holders to sell large amounts of cryptocurrency without disrupting the market value.
Invest in ICOs.
Invest in Initial Coin Offerings to earn rewards as a company develops a new cryptocurrency. ICOs enable you to invest in a cryptocurrency before it becomes available to the public and unlock prices, earning you rewards relative to the project’s success.
How to Trade Cryptocurrency with Finxo: Why Choose Finxo?
This is where Finxo comes in, providing a sophisticated suite of trading options such as real-time data, charting, and technical indicators, to help the trader make the right decisions.
How to Trade Cryptocurrency: Secure Platform
Finxo makes sure their exchange is more secure by offering features such as two-factor authentication and cold–wallet storage that secures the funds. This helps protect traders from being hacked.
How to Trade Cryptocurrency: Competitive Fees
Unlike some other brokers, Finxo keeps trading fees competitive, allowing traders to minimize carrying costs, allowing them to potentially keep more of their profits.
Here, low fees might also mean the difference between profit and loss, particularly when it comes to high-frequency traders.
How to Trade Cryptocurrency: User-Friendly Interface
Intuitive and welcoming, Finxo has a user-friendly interface that is designed to make it effortless for both novices and experienced traders to use. The trading functions and data are clearly presented and easily accessible.
How to Trade Cryptocurrency: Excellent Customer Support
Finxo is available 24/7 to help traders with any questions or problems that may arise, providing excellent customer service. Having a reliable customer service representative can solve problems promptly, allowing the trader to go back to the other trades that they have pending.
How to Withdraw Money from a Finxo Account
It’s so easy. All you need to do is log in to your account, go to the withdrawal page, choose a way to take money out, confirm the amount, and send it to your card. That’s all. Your money will be in your hands in an instant.
Trading Reviews and Online Trading Reviews
Finxo has received excellent ratings and reviews for trading, and Finxo online trading reviews from traders and various forums and blogs in the industry.
The traders review the benefits of the Finxo platform, like advanced trading instruments, secure reliable trading platforms, and excellent customer support.
This solution offers a joint trading account that allows several people to manage a single account at Finxo.
This particular feature should be suitable for families who would like to collaborate on creating savings or for multiple partners who would like to combine their efforts and strategies in trading.
What is Buying and Selling in forex?
What you are essentially doing when you buy and sell on the forex market is trading currency pairs: you are selling one currency for another.
If your position succeeds, you make money from the movement of exchange rates between the two currencies.
There is a strong resemblance between trading in forex and trading in cryptocurrencies: no matter which market you trade in, you will benefit from developing a deep knowledge of how to read the market and devise a robust trading strategy.
Finxo is an advanced trading platform that offers automated trading bots, application program interfaces (APIs), and custom trading screens that let you implement even the most advanced trading strategies and take the most advantage of your returns.
This advanced trading platform features fast execution speeds, liquidity, and market-depth features.
It was built specifically to empower traders with state-of-the-art tools to trade smarter.
Learning how to trade cryptocurrency can unlock many financial opportunities.
The history of cryptocurrency trading around the world, the numerous advantages of trading cryptocurrencies, and their diverse trading methods are expected to prepare prospective traders to enter this dynamic market.
Once a trader has recognized the need to stay ahead, they should select Finxo for its cutting-edge tools, ease of use, and most importantly, its excellent customer support, and they will be capable of trading successfully and profitably.
Whether you’re new to trading and eager to enter the market confidently and safely, or an experienced trader looking to diversify your strategies and reach new heights, Finxo provides the platform to help you achieve your crypto trading goals.
