Many people have heard of Cryptocurrency and its potentials for making anyone involved in it a millionaire. This has been the limit of what some people consider to be Cryptocurrency. Some even mistake Bitcoin for Cryptocurrency. Yes, Bitcoin is a cryptocurrency and the biggest. However, it is just one of the many cryptocurrencies that are there.
Of course, Cryptocurrency has made money for many people, and it is still making money for a lot of people. Now, this is where many people will ask, “how.” Money can be made off of Cryptocurrency in two ways; by trading and by holding.
Since this article will be talking about trading, we will give a brief information on holding. Simply put, Holding means when a person buys a currency at a lower price with the aim that the price would rise as time goes on. This is an excellent way to make a long-term profit. However, some people make a profit from the market every day. These people are those that trade on the market.
Trading bitcoin means buying and selling coins via coin exchange or speculating price movements of coins through a CFD trading account. Hence, crypto trading is divided into two aspects. The first being prediction of price movement of coins using a CFD trading account – this is called CFD Trading of Cryptocurrency. Also, we have the buying and selling of coins on an exchange platform.
CFD Trading Of Cryptocurrency
CFD trading of bitcoin occurs when a trader predicts the rise and fall of Cryptocurrencies. They don’t take ownership of underlying coins when they trade this way; you just predict the rise or fall of the coin. This prediction would be what would propel the trader to either go long or go short. Going long occurs when a trader’s prediction stipulates that a coin they possess would rise and buy. However, going short means that the prediction means that the coin would fall and sell it off.
When doing CFD trading, margins, i.e., minor deposits, are always made. These margins are made to get total exposure to the underlying market. They can make a profit with this margin or make losses. This depends on the rise or fall of the coin.
This type of trading is very stressful, and this is why most traders use trading bots to carry out the trade. They just simply put money with the trading note and give it orders on how to watch the market with a price limit. For instance, you can trade with the Bitcoin Prime, Cryptohopper, Bitcoin Profit, and many other trading bots.
Buying And Selling Of Coins On Exchange Platforms
Unlike CFD trading that doesn’t require you to buy the coins, when it comes to buying and selling coins on exchange platforms, you need to buy the crypto coins and sell them before making a profit. The first thing you need to do is create an exchange account where you will put the coins you want to sell. For that, choose the best exchange platform, download it, and sign up for a new account.
While creating the account, you will have to fill in the essential details and confirm your email. Later on, you have to complete the KYC where it is necessary to submit legal documents as proof. Keep in mind that the KYC requirements vary from country to country. If you are done with the KYC, add funds into your account and start trading. Most traders buy when the price of the coin is low, and they sell when the price goes a bit higher.
Most exchange platforms have the most amount that you can deposit. Hence, as a trader or an aspiring trader that wants to be making a profit off the crypto market every day, you need to get familiar with the technology of these exchange platforms. Most importantly, it would help if you learned how to make sense of dates, the rise, and the market flow to make a profit as a trader.
How Many Cryptocurrencies Are There?
As of now, approximately 15,000 different crypto coins are accessible for trading across various platforms. Keep in mind that new cryptocurrencies are emerging from time to time. Till November 29, 2023, the cumulative value of the cryptocurrencies is over $2.5 trillion.
In addition to that, their value reached about $2.9 trillion in the earlier weeks. In that, the total market capitalization of Bitcoin, the first crypto coin, is nearly $1.1 trillion. Here is the list of the top 10 highly recommend cryptocurrencies, which have the highest market cap as of November 29, 2023:
- Bitcoin ($1.1 trillion)
- Ethereum ($515.7 billion)
- Binance Coin ($104 billion)
- Tether ($73.1 billion)
- Solana ($63.7 billion)
- Cardano ($52.7 billion)
- XRP ($46.4 billion)
- USD Coin ($38.4 billion)
- Polkadot ($35.6 billion)
- Dogecoin ($29 billion)
What Are The Benefits Of Crypto Trading?
Here are some of the primary benefits of crypto trading:
High Profits In A Short Period
The best benefit of trading crypto coins is high returns in a really shorter duration. It is also the major reason why several investors have started investing in various crypto coins. The crypto market is known for its highly volatile nature as the coin value may suddenly surge or decline. For instance, from October 2017 to October 2018, the value of Bitcoin climbed up to $19,378 and knocked down to $5851.
All-time Available Market
If you are familiar with stock market trading, you might know that the trading hours will open at specific times. However, the crypto market is accessible for investors 24/7 without any certain opening or closing times. But, you would not get access to trade crypto coins for some time when the exchange platforms install new features or updates.
When it is about money transfers, almost everyone prefers transparency of their private or financial data. The whole information of the crypto investors and other data is stored securely in blockchain technology.
Low Or No Transaction Fees
While making crypto transactions, users have to pay only a small amount of transaction fee. Other than that, there are no additional taxes for trading crypto coins. However, if you make transactions with traditional money, you will have to pay extra fees. Also, there are other different kinds of taxes that you might need to pay depending on the total transaction value.
Other benefits of crypto trading include high-end security and total control over your funds. Blockchain technology is secured and stores user data safely. You can also withdraw the funds anytime, but remember there is a specific withdrawal limit.
Cryptocurrency is a big platform, and many are making money every day on the platform. This has led many more people to get involved with the market, either holder or a trader. A holder buys coins for a long time with the aim that these coins would rise over time – they are long-term earners. A trade trades every day on the market to make a profit by looking at charts and making predictions. Cryptocurrency is the next big thing, and it would be best for you to be involved.