Learn how to start trading in the exciting cryptocurrency markets - GREAT MONETIZE

Invisting in cryptocurrency

Hello everyone all GREAT MONETIZE visitors today we coming with very useful blog how to start reading in the existing cryptocurrency very easy and growing huge money. 

Cryptocurrency trading for beginners

 Keeping an eye on new opportunities in the markets is crucial for traders who want to take advantage of them while they are still in the early stage. Sometimes, these opportunities come in the form of entirely new markets. Cryptocurrencies have existed even before 2009, when Bitcoin was introduced for the first time.

 However, it was not until November 2017 that the real spread of Cryptocurrencies began to record records that reached $10,000, and since then Cryptocurrencies have attracted the attention of traders strongly due to the great opportunities offered by the fast pace of these markets. While more and more people are involved in cryptocurrency trading, these markets are young, volatile and full of opportunities for the trader who is willing to understand their mechanics.

 The first step to getting started with Cryptocurrencies trading is to understand the different options available to you. Whether you believe in the long-term value of Cryptocurrencies or want to take advantage of the numbers that double daily as a result of their price movements, here are three of the most popular methods of Cryptocurrencies trading.

1. Buy and hold

 Since the launch of the Bitcoin digital currency, early investors have gained millions from this digital currency. Returns from investing just $100 in Bitcoin in 2010 were estimated to be more than $5 million in late 2017. Add to that the innovative technology used by cryptocurrencies and this explains why some investors see cryptocurrencies as good long-paying opportunities.

 However, buying and holding Bitcoin and other Cryptocurrencies requires you to have a more in-depth understanding of the technology used in those currencies. In order to buy Cryptocurrencies, you first need to open an account with an online exchange or trading agency. Since banks do not deal in Cryptocurrencies, the responsibility of storing and maintaining Cryptocurrencies will be your responsibility.

 Following the bankruptcy of Mount Gox, the world's first bitcoin exchange to make digital currency available to the average investor, clients lost access to millions of dollars, and traders lost confidence in unregulated exchanges. This is why digital wallets are often recommended, so that the owner of the digital currency is fully responsible for the security of their coins.

Cryptocurrency exchanging

2. Trade on one of the stock exchanges

 Another way to trade digital currencies is to speculate on the price of Bitcoin, Ethereum, Ripple, Litecoin and other digital currencies on an exchange. Bitcoin's skyrocketing price has led to a similar skyrocket for a number of other Cryptocurrencies exchanges.

 The most important task of a trader before starting trading is to make an assessment of the elements of his account insurance provided by the exchange. Due to the lack of accreditation in the Cryptocurrencies markets, these exchanges are not managed in the same way as other financial institutions and therefore it is recommended that full due diligence be exercised before opening an account and before transferring any funds.

 In addition to the issue of account security, traders who are serious about trading Cryptocurrencies should also evaluate the leverage levels and payment methods available. As for traders who want to control positions with a capital greater than the amounts they started with, they must first check if the exchange offers margin trading, which is also known as leverage.

 Although some exchanges do offer you options, the leverage levels available can vary widely. An in-depth analysis of the available payment methods is also crucial, since it is not currently possible to make a deposit simply by using your card on all exchanges. In some cases where cards are accepted, the fees applied are so high that traders prefer to deposit via bank transfer which may be less speedy but more cost effective.

3. Trade through a broker

 For those wishing to take advantage of Cryptocurrencies price fluctuations, without the hassle of dealing with a digital wallet or worrying about the security of their funds, trading with an approved broker is the most popular option.

 When it comes to account security, funds deposited with an approved broker in the UK will be protected up to £50,000 in the event of the company's liquidation or insolvency. It should be noted that some brokers offer even higher levels of protection at no additional cost.

 The second benefit of trading with a broker is leverage. With the increasing number of Cryptocurrencies being offered by traditional brokers, traders can gain exceptional leverage on a wide range of Cryptocurrencies. This is an excellent way to consolidate your gains regardless of how low or how high your initial capital is. However, you have to note that leverage is a double-edged sword that should be used with caution in order to limit potential losses.

 Cryptocurrencies trading is similar to forex trading in many ways. Cryptocurrencies are priced against the US dollar or the euro and traders can speculate on spreads or use CFDs to take advantage of the price fluctuations. Most of the popular brokers provide trading applications that you can rely on, to keep you informed of the latest developments in the Cryptocurrencies markets, and it is no wonder, then, that we see an increasing number of traders entering these exciting markets.

Trading examples

 Let's look at a few examples to see how bitcoin and other Cryptocurrencies can be traded in practice.

Trading cryptocurrency

 Bitcoin trading example

 Let's say your research on the Cryptocurrencies markets indicates that the price of Bitcoin will go up. Accordingly, you opened a Buy position of 0.1 lots on Bitcoin (BTC/USD) at a price of $40,041. This is one-tenth of one Bitcoin and your profit or loss is calculated as the difference between the opening price and the closing price divided by 10.

 Within a few days, the price rebounded to $44,560. It is then that you decide to close your position and take your profits. I did well! You made a profit of $451.90.

 After doing thorough research, you are convinced that the recent rally in Bitcoin price is about to fade away.. You decide based on your belief that the Bitcoin price will drop in the near future to open a 0.1 lot sell position on Bitcoin (BTC/USD) at $45,550. This is one-tenth of one Bitcoin and your profit or loss is calculated as the difference between the opening price and the closing price divided by 10.

 Three hours later, fresh buying from large institutional investors pushed the price towards new highs of $48,100, where your stop-loss order was triggered. Your loss is the difference between the opening price and the closing price. As a result, after hitting the stop loss order, your loss is $255 not including transaction commissions.

 Ethereum trading example

 Let's assume that after analyzing the market, you are confident that the price of Ethereum is about to rise and make a new high. Your technical analysis suggests that a good entry point is around $2900. You open a position and buy 1 lot on the Ethereum pair (ETH/USD), which represents 1 Ethereum coin.

 Despite your conviction, the price of Ethereum has reversed and fell towards the $2600 level. That's when you decide to exit the trade and close your position. Your loss is the difference between the opening price and the closing price. As a result, after closing the deal, you lose $300 before commissions.

 In an alternative scenario, your analysis suggests that Ethereum prices are about to drop following news of a major wallet hack breaking out. Your view on the market is that the prices are about to drop and you decide to open a short position of 1 lot on Ethereum (ETH/USD), which corresponds to 1 Ethereum coin at $3300.

 As news of the hack spreads, Ethereum price is dropping towards the $2900 level. Your take profit order is triggered at $2950 and your position is closed. Your profit is the difference between the opening price and the closing price. As a result, after closing the deal, you earn $350 before commissions.