Let me start by saying cryptocurrency trading is a two way affair.
To some traders, it’s a profitable online business and to another set of people, it’s nothing but a pure scam.
Oh, that was a bit harsh anyway; however different people have different views on cryptocurrency trading.
It could be a risky investment if you don’t know the rules, strategies and best application for cryptocurrency trading.
It’s also important for you to know that blockchain technology and cryptocurrency trading has become a source of income to those who know how to trade profitably.
Hence if I may ask, what is your understanding about cryptocurrency trading and blockchain technology?
Is it a good medium to invest money or do you also think it’s one internet scam as some people think?
When Bitcoin was launched in 2009, it had no fame, no power and its market cap was not anything to be reckoned with.
Well, some people had tons of Bitcoin in its early days but sold off so early for various personal reasons and decisions.
Am sure if the world had known the Future of Bitcoin, those who had hundreds and thousands of Bitcoin years back would not mess with their coins.
However, no one could tell the future of blockchain technology and cryptocurrency trading, else everyone would have desired to own a Bitcoin when it was less than 50 cent per coin.
What is Cryptocurrency Trading:
Cryptocurrency trading is an act of buying and selling cryptocurrencies with the aim of making profits.
It involves exchanging one cryptocurrency for another cryptocurrency or fiat currency which can also be carried out through various cryptocurrency exchanges.
According to Wikipedia, a cryptocurrency exchange, or a digital currency exchange, is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies.
There are lots of cryptocurrency trading apps offering crypto exchanges today.
As we proceed, we will discuss about 10 major cryptocurrency trading apps later in this article.
14 Facts about Cryptocurrency Trading and Blockchain Technology:
Let’s check some truth about cryptocurrency trading and how to become a successful crypto trader.
1. Cryptocurrency Trading Is Not a Get Rich Quick Scheme:
It’s important for you to know that crypto trading is not a get-rich-quick scheme.
Rich people in business today know that there is no short cut to lasting wealth.
There is no free money even in free town so don’t deceive yourself that investing in cryptocurrency will make you a millionaire overnight.
If you take time to learn and understand how it works then it’s just a matter of time before you truly get rich.
However, cryptocurrency can make you insanely rich if you learn how to be a good cryptocurrency trader or a holder.
This is very possible when you know how blockchain technology and cryptocurrency works.
2. You need Patience and Persistent to Make Money from Crypto:
Crypto isn’t for the weak, this means you need to learn how to hold on even when the market goes against you.
If you have zero tolerance and patience then stay away from cryptocurrency trading, else the current rise and fall might push you off track financially, physically and mentally.
It’s possible to buy a coin worth $1000 today only to come back next week and it’s value is less than $200.
However, it’s also possible to see a $1000 portfolio becoming $20000.
3. Study the Market Trend:
You need to understand how the crypto market works before investing your money.
Study the buy and sell trend of the market when purchasing a crypto coin.
Do your own research, check how many people are buying and how many are dumping the coin.
Don’t trade carelessly, find out the best time to buy and when to sell, learn before you earn.
Also Read This Article: 6 Best Cryptocurrencies to Buy With Top Crypto Exchange.
4. Don’t buy the pump, buy the dip:
The best time to buy in the crypto market is to buy when it dips.
A lot of newbie traders jump in to buy when they see a coin pumping massively.
Many people are victims of buying at an all time high. Professional traders focus on buying the dip.
If you keep buying the pump, you might keep losing money and label cryptocurrency as scam.
5. Cryptocurrencies are Volatile:
Bitcoin price is not stable, unlike the US Dollars.
Cryptocurrencies are volatile, they are subject to sudden and unexpected changes with regards to market buy and sell ratio.
However, stable cryptocurrencies like USDT and BUSD are used by traders when they seek to make profits.
Stable coins help traders keep their money stable and also used to purchase other volatile cryptocurrencies when needed.
6. Cryptocurrencies Operates Completely Decentralized:
Unlike fiat currencies which are regulated and controlled by central banks.
Cryptocurrencies have no central bank and only operates on blockchain technology.
This makes it impossible to manipulate by any group of people.
I guess this explains why banks do not like crypto. It’s free from government controls.
Well, some countries placed ban on crypto to stop trading, however this has not stop crypto trading as peer to peer trading is largely in practice.
7. Beware of Scam Coins:
Anyone can launch a coin on the Binance Smart Chain (BSC) network.
This is why it’s important for you to do your own research before buying any coin.
Don’t just jump at any new crypto coin you see, fake versions of crypto coins are plenty nowadays.
Therefore care must be taken before purchasing any coin to avoid loss of capital.
You can check poocoin dot app to see the market flow of buy and sell of any coin you want to buy.
Also, check their market cap, circulatory and maximum supply to help you take good decisions.
Check if people can conveniently buy and sell at poocoin.app before purchasing your coin.
8. Look at The Number of Holders:
How many people currently hold the coin you want to buy? Check their telegram group to see how engaging it is.
Don’t be in a hurry to purchase a coin without making proper research; else if you purchase a fake token, you’ll not be able to sell it.
How active are the developers of the coin? Are they interacting with investors?
This will give you a quick hint whether to buy or not.
ALSO READ THIS: 8 MAJOR REASONS WHY ENTREPRENEURS FAIL IN BUSINESS.
9. Check For Liquidity Pool:
How easy is it to exchange that coin to other cryptocurrencies?
What cryptocurrency trading platforms are they using?
Any coin at risk of liquidity pool is a big no for me.
For instance, when one wallets holds over 75% of the crypto coins, then their might be a risk of a rug pull.
What does it mean for a coin to rug pull: It means when a major holder takes profits from a coin and dumps it.
Liquidity pool is so important.
10. Analyze Your Trading Risk, avoid greed:
Don’t try to take all profits in one single trade. Analyze your trading risk and avoid greed.
One reason why people lose their trading capital in crypto is because of greed.
If you can’t do day trading, just hold.
There are many ways to make money from cryptocurrencies.
You can do daily trading, hold coins to sell when price goes up and even engage in cryptocurrency staking.
However, you can only take advantage of them if you stay away from greed.
11. Cryptocurrency Trading Offers the Cheapest Transaction Fees:
Cryptocurrencies have less transaction fees when compared to fiat currencies.
Hence you can process a transaction worth millions of dollars by paying a few dollars as transaction fee.
This allows holders and traders to keep more profits from successful trades.
ALSO READ THIS: STEPS TO START A REAL ESTATE BUSINESS FROM SCRATCH.
12. There is High Level Security in Cryptocurrency Trading:
There is high level security in blockchain technology when compared to commercial banks.
This means no one can cheaply get access to your funds without your permission.
Hence, your assets cannot be looted by hungry hackers who steal people’s bio-data to steal money from their bank accounts.
A person’s next of kin can break into the bank if anything happens to the account holder and the bank will release cash to him.
However, crypto has no next if kin. Hence anyone who doesn’t know the crypto holder information’s cannot access his asset.
This is just to tell you how secured cryptocurrencies are.
13. You Can Create Price Alerts in Cryptocurrency Trading:
Price alerts helps traders know when price is up and when it goes down.
Traders use this as a notification to know what happens in the crypto market even when they are off trades.
This will help them know when to sell and when to buy.
14. Cryptocurrency Trading is Not a Financial Advice, Hence Trade With Money You Can Afford to Lose:
Every business has it’s profits and loss account, hence you must exercise caution in cryptocurrency trading.
Just like I said before that crypto is not a get rich quick scheme, so don’t go bankrupt by putting all your investment capital at one trade.
Oh yes, you could do it and gain massive profits, However, have you asked yourself if the trade goes against your analysis.
This means you just lost all your money.
Never trade with any money or investment capital you can’t afford to lose.
Best Applications for Cryptocurrency Trading:
According to coinmarketcap top cryptocurrency spot exchange data, here is a list of 10 best application for cryptocurrency trading:
1. Binance (The Largest Cryptocurrency Trading Platform in The World by Trading Volume):
Binance is one of the best cryptocurrency trading app in the world, it has an exchange score of 9.9 and a 24 hours trading volume of over $30.9B.
Its average liquidity sits at 695 with over 25 million visitors per week.
Binance have an active peer to peer trading system for countries that don’t support crypto trading.
It has 1383 markets, 382 coins and supports fiats such as AED, ARS, AUD and 43 more.
2. Coinbase Exchange:
Coinbase exchange score is 8.9 and a 24 hours trading volume of over $3.8B.
Its average liquidity sits at 582 with over 3 million visitors per week.
It has 283 markets, 94 coins and supports fiats such as USD, EUR, GBP.
3. Huobi Global:
Huobi global score is 8.6 and a 24 hours trading volume of over $6.7B.
Its average liquidity sits at 610 with over eight hundred thousand visitors per week.
It has 926 markets, 332 coins and supports fiats such as ALL, AUD, BRL.
Kucoin exchange score is 8.4 and a 24 hours trading volume of over $2.1B.
Its average liquidity sits at 437 with over 1.2 million visitors per week.
It has 838 market and 413 listed coins.
Kraken exchange score is 8.4 and a 24 hours trading volume of over $1.3B.
Its average liquidity sits at 569 with over 1.9 million visitors per week.
It has 330 markets, 79 coins and supports fiats such as USD, EUR, GBP and 4 more.
FTX exchange score is 8.3 and a 24 hours trading volume of over $2B.
Its average liquidity sits at 476 with over 1.6 million visitors per week.
It has 507 markets, 243 coins and supports fiats such as USD, EUR, GBP and 7 more.
Binance.US exchange score is 8.1 and a 24 hours trading volume of over $1.1B.
Its average liquidity sits at 363 with over eight hundred thousand visitors per week.
It has 117 markets, 60 coins and supports fiats such USD.
Bithumb exchange score is 8.0 and a 24 hours trading volume of over $1.3B.
Its average liquidity sits at 266 with over six hundred and fifty thousand visitors per week.
It has 250 markets, 184 coins and supports fiats such as KRW.
Bitfinex exchange score is 8.0 and a 24 hours trading volume of over $1.1B.
Its average liquidity sits at 469 with over seven hundred and fifty thousand visitors per week.
It has 305 markets, 150 coins and supports fiats such as USD, EUR, GBP and 1 more.
Binance exchange score is 7.9 and a 24 hours trading volume of over $830m.
Its average liquidity sits at 336 with over 2 million visitors per week.
It has 1447 markets, 805 coins and supports fiats such as KRW and EUR.
PLEASE NOTE: These figures are subject to changes, hence you can always visit coinmarketcap for real time information.
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