Unlike stock markets, cryptocurrency exchanges never sleep,
it's global and trades 24/7.
To start trading there are some things to understand:
Only a few exchanges allow you to buy bitcoins with your own currency.
Bitcoins are the most common trading currency, so to invest in other tokens, many times you will
only be able to trade and trade with bitcoin. So you will need to own bitcoins to trade.
Ethereum has also begun to be widely accepted as a trading currency.
Many exchanges are not regulated, so invest at your own risk.
With that in mind, here are some of the most popular exchanges.
Coinbase
Coinbase in the unBinance
Based in Hong Kong, Binance launched in late 2017. But it quickly became very important.
I personally recommend Binance for its user interface, ease of use, low fees,
and the selection of tokens they have. cited states, Coinbase is one of the largest bitcoin
exchanges per day. Coinbase currently allowBitfinex
Also based in Hong Kong,
Bitfinex is one of the largest exchanges and manages the largest volume of bitcoin for an
exchange trading with North America. It also offers a range of altcoins,
but not as many as Bittrex or Binance.
Trading Cryptocurrencies | How to invest in cryptocurrencies.
Now that you understand how wallets work and have discovered the exchanges
you can trade on, it's time to learn the mechanics of trading in the crypto world and
the general tips and common mistakes to avoid.
How to trade on bitcoin.
Many trading interfaces are similar between exchanges, but there are basic concepts to
understand, which are quite similar to those of stock markets. The only difference is that
most tokens are traded for bitcoins, or in some cases ethereum.
Bitcoins and many other tokens are divisible. There is no need to buy a whole bitcoin because
it can be divided into 10 million units. It is a good habit to make your trades by referencing
not only your currency but also the value of ethereum and bitcoin.
A bitcoin is divisible by up to 10 million units, and 1 satoshi is the lowest it can take.s you to
buy 4 cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
You can buy them directly from your credit card with a weekly limit of 280 dollars.
This limit can increase if you complete identity verification. The fee they ask for is 4%.
Bittrex
Another American exchange, Bittrex is one of the most popular for crypto,
trading 1300+ alternative cryptocurrencies. You cannot deposit currency directly to Bittrex,
so you must first buy bitcoin or ethereum and then transfer them to Bittrex before continuing
to trade.
Binance
Based in Hong Kong, Binance launched in late 2017. But it quickly became very important.
I personally recommend Binance for its user interface, ease of use, low fees,
and the selection of tokens they have.
Bitfinex
Also based in Hong Kong, Bitfinex is one of the largest exchanges and manages the largest
volume of bitcoin for an exchange trading with North America. It also offers a range of altcoins,
but not as many as Bittrex or Binance.
Trading Cryptocurrencies | How to invest in cryptocurrencies
Now that you understand how wallets work and have discovered the
exchanges you can trade on, it's time to learn the mechanics of trading in the crypto
world and the general tips and common mistakes to avoid.
How to trade on bitcoin
Many trading interfaces are similar between exchanges, but there are basic concepts to
understand, which are quite similar to those of stock markets. The only difference is that
most tokens are traded for bitcoins, or in some cases ethereum.
Bitcoins and many other tokens are divisible. There is no need to buy a whole bitcoin because
it can be divided into 10 million units. It is a good habit to make your trades by referencing
not only your currency but also the value of ethereum and bitcoin.
A bitcoin is divisible by up to 10 million units, and 1 satoshi is the lowest it can take.
Limit Limit
trading allows you to set the price you want to buy or sell a token, and specify how many
tokens you want. This is a good way to sell or buy when the token price reaches your target.
Market
Some exchanges such as Binance allow you to buy at the market price. On Bittrex, this is called
the ask, which is the asking price in the market. This is the best way to buy in the market
if you want to buy or sell a token immediately.
Stop-Limit
The stop limit allows you to start an order automatically at a given price. For example,
if you set the stop limit to $ 5, it will automatically start buying at the limit you set which
is $5 or less.
To check if you have entered the right Bitcoin value, in terms of dollars and euros,
you can paste the quantity on coinmill.com.
How to monitor your wallet | How to invest in cryptocurrencies
Now that we have talked about trading, let's move on to how to control the wallet. In the crypto
ecosystem, you may be dividing yourself too much between many exchanges and wallets.
Remembering which tokens you invested in, how much you bought, at what price you bought,
on hundreds of addresses can be very difficult.
A good approach would be to create an excel sheet, but keeping it up to date can be difficult.
Fortunately, there are many apps that allow you to monitor your sales and show you your gains
and losses.
Block folio
Blockfolio was one of the first apps that were released specifically to control crypto investments.
It is one of the most popular and has been released for a long time, for both IOS and Android.
To get started, there are a few things to set up, first you need to enter all your transactions
manually. Once finished it will show you the gains and losses, you can choose whether to
see the value in bitcoin or in euros. It does a good job of showing you the value of the coins
you own. But it's a bit difficult to see how much you've done per coin, you have to click the
coin and then the tab holdings to see the profits, which is a bit annoying.
You can also set up price alerts, and check out the latest cryptocurrency news from sites
like cointelegraph.com
Pro:
Blockfolio controls more than 2000 altcoins, making it one of the most comprehensive.
Price alerts.
The news feed.
It supports many currencies.
It is available in IOS and android
Versus:
Entering transactions can get tedious.
The charts are not interactive.
There have been server issues in the app, especially since interest in cryptocurrencies has
increased.
Sometimes the data, the prices of the tokens, can be inaccurate compared to the prices of
the exchanges.
The design is minimal, and it can feel a bit confusing.
Delta
Delta is a new app that monitors your crypto investments and shows you the gains and
losses. As a block folio, you have to enter all transactions manually to calculate profits.
Delta's graphics are better than blockfolio's and are more user-friendly.
It also shows you the profits right away without having to click. It seems little but it is a
lot in terms of usability.
Pro:
Check 2000 altcoins.
Price alerts.
It supports many currencies.
The graphics are better.
It is available on both IOS and Android
Versus:
Enter transactions manually as a block folio.
The charts are not interactive.
No news section.
Security | How to invest in cryptocurrencies
Many of you will have heard of lost private keys, stolen bitcoins, hacked exchanges.
When there is a lot of money at stake it is important to take all available security measures.
Enable 2-factor authentication (2FA)
This is the first thing investors should do immediately after registering on an exchange,
or where the coins are held. All exchanges have this option. 2FA assures you that even if
your login and password are compromised, hackers cannot enter your account unless they
also enter a 6-digit code, which you can only control from your phone.
To set this function
Go to the section that lets you activate the function on the exchange or site.
Scan the QR you see with the app and that's it
After that every time you log in, it will also ask you for the code before logging you in.
Use long, secure passwords
It might be annoying to search for it every time you want to log in but this process is much safer.
Do not reuse passwords and logins
If one of your accounts is compromised, it is clear that a hacker can easily find the other
accounts on exchanges, and before you know it you have lost all your investments.
Common mistakes to avoid
Send tokens to the wrong address
This is very important to remember, once the coins are sent to the wrong address,
they are no longer recoverable, so always check many times before sending or receiving coins.
Sending the wrong amount of coins
Since bitcoins are divisible by up to 10 million units, it's hard to control how much money
you're really sending. Always check the market values before sending coins.
General advice.
Invest What You Can Afford to Lose
Cryptocurrencies are a new type of investment and a new market. It is a very risky investment.
And you should invest with the thought that money may become worthless someday.
So don't invest more than you can afford to lose.
Buy growing coins now
Very often, when a coin is rising in price, it is tempting to buy and ride the wave.
I recommend that you avoid rushing to buy because soon the price of the coin will start to
correct and you will end up having a token at a loss.
Don't try to control the market
When it comes to cryptocurrency trading, not only is the market more volatile
than traditional ones, it is also less predictable. You can't always sell when it's high and buy
when it's low. It is much safer to take time and wait.
HODL The
The more you trade cryptocurrencies, the more often you will hear people say “Just hold”.
It was originally used in bitcoin forums, now it's a meme and general trading strategy
which means hold your tokens for the long term. It is an important piece of advice that is
always effective. Keep holding your tokens through the ups and downs, and don't trade.
When the market grows over time, so will your investments.
Buy During Market Corrections You will
soon notice a pattern in the crypto market, there are periods of growth followed by periods
of correction. These times are perfect for buying.
Always Research
As the crypto market is not currently regularized, there are many scams. It is the wild west,
and you should always check before investing your money. There are many factors to consider
when judging a token or project. Here are some of them:
Team - Does the team have experience? do they have a good background? do they have real
and verified identities?
Technology - Are they creating real technology that serves to solve a problem?
What is the difference in their approach? Are they active in development?
Do they have their own blockchain or is it a clone of another token?
Token - While some projects have good concepts, they don't necessarily mean a good
investment. It is important to understand if the token you are buying has the properties that
will allow it to grow over time.
Conclusion | How to invest in cryptocurrencies
Blockchain technologies and cryptocurrencies are still new,
and there is a great learning curve to fully understand them.
Understanding all the aspects listed above for cryptocurrency investments
can be very complex, professional advice can certainly help you better
understand how to move.
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