The Crypto market, a new financial system that promises a high amount of profitability, has been recently garnering it’s deserved attention worldwide. Cryptos are seen as a good alternative for conventional banking systems simply because of how they solve many issues in regards to the mainstream ways of how we deal with our money. As of today, more and more people are really getting into the crypto trading market and the number of trading exchanges is also increasing thanks to this sudden surge of attention. For experienced traders who have been in forex and stock exchange before, adapting to the crypto trading market is pretty easy. In a way, both have the same concept and fundamentals. But in reality, the crypto market can be very much burdening and draining than forex. This is because the market is much more unstable. Prices and market standings can swing very quickly. To experts, this can be easily dealt with. But to new aspiring traders, this can be bad news. The crypto trading market really requires a lot of knowledge and research prior to engaging its market or else you will have to suffer great loss.
Sounds scary right? But fret not because remember, all business ventures really has its own sets of risks. The crypto market is still highly considered by many experts as an income-generating investment given that a trader can acquire all the necessary knowledge he can muster before he engages the market.
Read across this guide to know the basics of crypto trading so that you can be well-armed when you start your own venture to the crypto trading world. But let me introduce first the terms that you may stumble across the path of your crypto trading success.>> Register at the Official Crypto Profit website
What are Cryptocurrencies?
Cryptocurrency is a type of digital money that uses cryptography to process and record all of its transactions. The crypto trading market is backed by the so-called blockchain technology. This blockchain technology enables for the transparent, decentralized and unalterable manner of currency exchange. A decentralized currency, meaning it is not regulated by a banking authority or monetary system, is immune to inflation. Its value is determined by the demand itself. This decentralization also results for a cheaper and faster way of money transfer, since it only requires the consent of the two parties involved.
Most Used Cryptos
Bitcoin is the most used and the first cryptocurrency to be established. It has the highest market capitalization in all of the available crypto in the market. It is highly used in different exchanges and setting up an account is very easy due to the fact that all trading platforms accept Bitcoin. It is also acknowledged by big companies and services such as Microsoft, Amazon, and Starbucks. One of its major drawbacks is the way it fluctuates gravely.
Ethereum has made its way to the mainstream crypto market, to the point that it is considered as a formidable alternative to Bitcoin. In place of a blockchain, Ethereum uses its own currency regulated by an open network called the Ether. One good thing about the Etherium is its smart contracts. This feature makes the trades faster and easier.
Litecoin can be called as the Bitcoin’s twin crypto, as they are almost the same in every aspect. From the use of blockchain to the mining of its crypto. It’s a major advantage on the Bitcoin, however, is it’s processing speed which is about 75% faster than those in Bitcoin. Also compared to Bitcoin, Litecoin has more spare currency available and its algorithms are easier to decipher. It means that this is a large untapped quarry for crypto miners.
Bitcoin Cash (BCH)
This crypto is created to augment the drawbacks of its sister crypto, the Bitcoin. The Bitcoin Cash has a larger block capacity, giving more space for transactions to be verified at a time. Another advantage for the Bitcoin Cash is that its wallet is shared with that of those in Bitcoin. Bitcoin traders can easily shift to Bitcoin Cash whenever they want. It also has one of the cheapest trading fees.
This crypto aims to solve the slow speed of international money transfers and the fees that are charged for the transactions. Ripple is also linked to some big financial organizations such as Santander and American Express. A big drawback to this crypto is half of its available currency is currently owned by the same company that manages it. This has been a source of criticism as it counters the main point of cryptocurrency, which is decentralization.
Crypto Trading: How Does It Work?
As mentioned earlier, the backbone of the crypto market is the blockchain. The blockchain is a type of a public ledger that records and encrypts all the transactions in the crypto exchange that it is integrated with. Every time a batch of transactions is confirmed to be legitimate, a new block is added to the chain. That is where it gets its name, by the way, it records data. All of the previously added blocks are now more or less impossible to have tampered. Attempting to alter the records in a blockchain requires an enormous amount of time and energy. Many consider this an inefficient task, making the blockchain is one of the most secure types of data storage.
Mining is the process of adding new blocks to a blockchain. Crypto miners are then rewarded every time they succeed to do so, although the amount decreases every four years. Mining a crypto requires an enormous amount of computing power and energy because of the number of transactions that need to be verified first before it becomes a new block.
Some Helpful Tips in Crypto Trading
Now you know some basic terms, but you’re still not ready yet. Here are some tips to come by before you trade with cryptos.
1. Invest What You Can Afford To Lose
I’ve always said in the past that the crypto market is not 100% always about success. There are times when you may miss out on the prices and swings, which can potentially cause loss of money. Although not all loss in crypto trading is caused by the trades itself. Some may be caused by hacked accounts, system bugs or even money regulations of the government itself. Whatever the cause, remember that this is the reality of investing. You can say that after you buy a crypto, you have really no guarantee that you can still take your money back. I suggest that before you even think of investing in cryptos, evaluate your financial standings first. This way you can level how much money you are going to invest.
2. Don’t Settle on One Crypto
There are many types of cryptocurrency in the market. Try as much as your capital can. This can help you grasp different types of markets. Also trading with a different kind of crypto allows you to compare prices and movements of the market as a whole. Use this information to plan your next steps in trading. Different crypto markets swing at a different pace with each other. There are also times when multiple cryptos can skyrocket in price. Trading different cryptos also assure for a back up investment, say for example when the price of Bitcoin suddenly crashes in a swing, you can focus on other cryptos that have a more stable market for the moment.
3. Discipline is the Key
In crypto trading, discipline and self-control play a major part in success. A sudden hike in price can be very tempting and as humans, we tend to be greedy the moment that we see a situation that can benefit us greatly. The crypto market is very volatile, and as a new trader, you are always urged to suddenly buy coins impulsively. Let us say that a crypto price is bound to rise by 35% so you instantly buy a large amount of that crypto. But given the market’s unstable nature, the prices suddenly drop by 50% of the previous price the moment that you bought it. These types of situations are very common in the crypto market. Always buy cryptos in moderation whatever the current market standings maybe. This can help you balance out your capital and potential earnings.
4. Always Have an Insight Before You Invest
The crypto market consists of different kinds of people, some of which will non hesitatingly would exploit those that are less experienced than them. There are people that may bait you to buy on a certain exchange saying that it will hike in price. This is one of the most underhanded strategies that are used in the crypto market. Before you invest, take some time to research first. Information and knowledge has been a staple for war since the ancient times, and it is a very useful weapon in this battlefield called the crypto market.
5. Gain Experience From Mistakes
There are times when you may miscalculate and potential loss is inevitable. However, instead of cowering, use this mistake to gain experience. Analyze how that happens. Backtrack your trading history and study the current market status. After finding out the fault, try to think of ways to avoid repeating the same mistakes in the future. One thing to remember is that all have to start somewhere. And being a good crypto trader is greatly related to how many times he learns from past mistakes.
6. Know What is a Good Short or Long Term Investment
Since I said earlier that going through different crypto exchanges is better, I’ll add this one too. Sort different cryptos whether they are for a long or short term. Different markets have different fluctuation rate. Once you go on your own research about different markets, you should be able to realize the characteristics of different cryptos that can help you decide on whether they are for short or long term investment. Let’s just say that short term investments are a good way of earning quick profits. Try to pick cryptos that have a more volatile market, as you can always exploit it’s sudden price swings. On the other hand, long term investments are for markets that have a more constant and subtle trend. These types of markets tend to be an excellent long term investment and you could just always wait for its price to go higher so that you can make a profit out of it.>> Register at the Official Crypto Profit website
7. As Much As Possible Use Trading Bots
What can I say but trading bots really gives a big boost in crypto trading. Trading bots are a type of software that is integrated with sophisticated mathematical algorithms to analyze and predict the future trends of the crypto market. Trading bots uses past market histories to select its trades. Some trading bots also features real-time graphs for you to monitor different exchanges simultaneously. But one of the most favored features of trading bots is their automatic trading system. Let’s say that in the day time, you can do all the trading manually, gaining experience from first-hand trading. While at night time while you rest, you can set your trading bot to auto-trade mode. Trading bots can help you to fully take advantage of the 24/7 market of crypto trading. Trading bots also really helps in dealing with the analysis and complex mathematical calculations that are involved in the crypto market. But in selecting your trading bot, always choose for those that are highly trusted and has many positive reviews. Also, go for the ones that are a free and low capital requirement as they are most likely to be legit. One better example of an excellent trading bot is the Crypto Profit.
What is Crypto Profit?
Crypto Profit is an excellent trading bot that is famous for its high accuracy rate and security. Crypto Profit boasts a success rate of 88%, an outstanding rate even for most trading bots in the market. This high level of accuracy may be due to how it’s coding was designed. The developers of the Crypto Profit used several proficient trading strategies used by expert traders and integrate it into its program. It also has a high trust rating in TrustPilot. There are also several Crypto Profit Review I come across that already tested the trading bot, all other are positive reviews that state it’s high profitability. Although I also stumble upon which I believe are just Crypto Profit Fraud reviews written to discourage potential traders to use this trading bots. But it is up to you to try it out personally.
I also listed some of the notable features that make it as one of my personal favorites.
- High accuracy. Crypto Profit’s highest recorded accuracy goes up to 88%. One of the highest in the current list of available trading bots. It also claims to be able to anticipate future market trends.
- Free for everyone. Crypto Profit does not require subscriptions. All you need to do is sign up for an account. Though it charges your profits but this I find very natural since It needs funds for maintenance for better performance.
- High security. Its website is SSL protected, a web security technology that assures confidentiality and protection for Crypto Profit users’ personal information and funds.
- Easy withdrawal. Unlike other trading platforms, withdrawal of funds with Crypto Profit are simple and easy. It only involves filling up forms. Though they might require extra credentials but this is perfectly fine as it is a protocol for identity verification. Funds are also easily deposited to your account, which only takes less than 48 hours.
- A high rating and plenty of positive reviews. The Crypto Profit trading bot has a 4.6 rating on TrustPilot. This is important in selecting trading bots as it assures legitimacy. There are also plenty of positive Crypto Profit Review out on the web.
- Excellent Customer Care Service. Aside from the helpful guides found in the Crypto Profit app, they also have a very approachable customer care service. You can also contact them through various methods such as telephone hotlines and live chats.
- Regulated by licensed brokers. This is one of the most important features of the Crypto Profit trading bot. Aside from being professional, their brokers are also regulated by FCA and CYSEC. This added more to its legitimacy.
Crypto Profit: How Can You Trade?
To use the Crypto Profit trading bot, all you need to do is sign up for an account. Here are the steps:
1. Sign Up on their Website
Go to their website. On the right side of the page is a registration form already provided. Information required is your name, email address and phone number.
2. Try the Demo Mode
This is a feature unique to Crypto Profit. After filling up the registration form, you are given a chance to try their Demo Mode. Use this to grasp how the market works. The data shown are from previous trades, not the present one. But at least it can really help you to decide whether the app is legit or not.
3. Deposit Your Capital
After the Demo Mode and you will be brought to the payment page. The broker link to you will require you to deposit a minimum amount of $250 as your initial investment. Do remember that this is not a fee, but rather your capital. You can also include this when you withdraw your profits later on. The Crypto Profit’s brokers accept several payment methods like VISA, Maestro and MasterCard, digital wallets like WebMoney, Skrill and Neteller. Cryptos are also accepted such as Bitcoin and Etherium.
4. Proceed to Live Trading
After confirming your deposit, you can now proceed to the Live Trading window of the Crypto Profit app. This is where real trading happens. The Crypto Profit app features different functions like Auto-Trade and Guides. It even lets you adjust your loss stops and amount to trade. You can also set when it will stop trading.
Last Friendly Tip
Crypto trading, when done right can really be profitable. But it is still very risky and these risks can not be taken off, we can even say that these are the darkness behind the light of the crypto market. This guide is merely an introduction of what will await you in your crypto trading journey. On choosing the cryptos that you are going to partake in, remember that research is a must. If you are really unsure of your own skills, you can always use a trading bot to help you. Just pick out the right one, the one that is highly trusted by many and has positive feedback.
- What are the common risks in crypto trading?
The most common risk in crypto trading is the lack of information. Research is important to the crypto market and any financial trading platform. Another is security. Since crypto trading only requires digital wallets, there is a potential of account theft and hacking.
- Is trading bots legit?
Of course, they are. They are regulated by authorities the same as the conventional stock market.
- Is the Crypto Profit a scam?
As far as I know, Crypto Profit is legit. There may be Crypto Profit Fraud reviews that you may stumble upon but those maybe just black hat marketing ploys to tarnish its name. Trying it will prove it’s legitimacy.
What is the best crypto to trade?
The five cryptos on my list are the most popular ones. Although trying other cryptos is also ok, try to just rotate on those five as those are already well established.