Cryptocurrency trading platform - Ethereum, Tron, Bitcoin Trade
The concept of cryptocurrency in simple words
The term "cryptocurrency" refers to digital forms of currency. Cryptographic technologies, largely based on blockchain technology, are used to produce and transfer crypto. Electronically, "coins" are first created by completing mathematical calculations. In simple terms, a cryptocurrency is a digital payment system that is linked to actual money and has an established exchange rate.
The word "cryptocurrency" became popular in 2011 after Forbes magazine published an article on it. Since then, the term "koin" has become widely used to refer to koins (meaning "coins") that do not take the shape of paper notes or metal coins. This type of money only exists in the digital realm.
The future of cryptocurrencies is inextricably linked to the advancement of Internet technology.
Unlike other electronic payment systems, cryptocurrency initially appears without the participation of real money. To become the owner of a certain amount of coins, it is enough to connect to the service of their creation, become a member of a single mining network and wait for your "earnings". This is the key difference between cryptocurrency and real money.
Why is virtual money popular?
Any cryptocurrency has no official status as a payment method (a number of countries have already recognized Bitcoin). Users, on the other hand, are drawn to common traits such as decentralization. The owner of any of the existing cryptocurrencies is unconstrained by geography, state, or political system. Digital money, despite being linked to real money such as the US dollar or the euro, is "valuable in its own right".
Virtual money has gained popularity for the following reasons:
- High prevalence and adaptability. On any computer, smartphone, or tablet running a variety of operating systems, creating a wallet is simple.
- Settlement activities are simple and transparent. There is no temporal limit on storing the entire history of incoming and outgoing transactions.
- There is no central center in the cryptocurrency generating system, so no wallets can be blocked, payments can be canceled, or payments can be controlled.
- Maximum anonymity increases the independence of the payment system. When making payments, you can specify the address, account number at will of the owner of the purse, from which the payment is made.
- Transactions are protected by cryptographic methods. Without passing a block with a special verification code it is not possible to confirm financial transactions. If this is done, no one can cancel money transfer, which excludes fraud when paying with cryptocurrency for goods/services.
- Due to the high reliability of electronic wallets, protected by a private key, cryptocurrency can be used to create savings. Savings are useful as a universal means of exchange, a way to pay in online stores or in freelance exchanges.
It should be noted that we are talking about a highly volatile asset, so before you start investing, you need to carefully study this issue and choose a reliable broker. Before investing, you can register on the platform, study and test the strategies for free on the demo version of the platform. You can take this opportunity right now by clicking on the link below.
How to trade cryptocurrency?
Cryptocurrency trading revolves around speculation about the future price movement of the relevant digital coin. For example, when you trade Bitcoins - you try to predict whether the coin's price will rise or fall in the open market. You place a buy or sell order based on your assumptions, hoping to make a profit in the process.
Here's a practical example of cryptocurrency trading:
- Suppose you want to exchange Litecoin for U.S. dollars. On the cryptocurrency trading platform you choose, this will be denoted as LTC / USD. The current price of LTC / USD is $177.
- You create a buy order worth $500 per pair.
- A few hours later, the LTC / USD exchange rate goes up to $190. This represents a price increase of 7.3%.
- On your $500 bet, you made a profit of $36.50.
This is a typical example of cryptocurrency trading where you assume that the price of the asset will rise in the short term. On the other hand, you can also open a short position if you expect the price to fall. This is possible when trading cryptocurrency CFDs. We'll go over the ins and outs of short selling later in this guide to trading cryptocurrency.
To summarize, cryptocurrency allows you to take advantage of both uptrends and downtrends in an asset - as long as you predict the market correctly. In many ways, cryptocurrency trading is a lot like Forex trading. In both markets, you are trying to speculate on the price of currency pairs. In addition, both assets are equally known for their volatility. In fact, just like Forex, the price of a cryptocurrency also fluctuates about every second. Thus, cryptocurrency allows you to profit from both upward and downward movements of the asset if you accurately predict the market.
Trading Bitcoin is similar to trading forex in many respects. You are attempting to speculate on the exchange rate of currency pairs in both marketplaces. Furthermore, both assets are recognized for their volatility - at least when it comes to exotics. In fact, the price of a cryptocurrency swings every other second, just like the price of Forex.
If you are thinking about trading cryptocurrency, you will need to understand what is causing this price movement and where it is likely to go in the near future. Thus, before you make any market moves, you need to work on the relevant digital currency and its relevant market.
How to buy cryptocurrency?
We have listed several opportunities to buy cryptocurrency and store it safely:
The fastest way is through exchangers. As a rule, they give the opportunity to buy the most popular digital assets, which are among the top 20 in terms of capitalization. These include Bitcoin, Ethereum, XRP and others, as well as Stablecoin USDT. Coins can be paid for in a variety of ways. For example, using bank cards, payment systems such as PayPal and There are fees for buying cryptocurrency through exchangers. Its size can vary in a large range, for example, be less than 1%, reaching 10% and exceeding this value. But usually it is 1-2%. The amount of commission depends on the cryptocurrency chosen by the user, the payment method and the specific exchanger.
Exchangers are intermediaries who offer services for buying and selling cryptocurrencies and charge a markup. However, it is possible to buy digital assets without a third party, directly from other people. For this purpose, p2p platforms (p2p - person to person) were developed. The most popular of them is LocalBitcoins. On it, a user makes a transaction with another user, and the service acts as a guarantor that one does not cheat the other.
Pay attention to a number of factors: First, the price is given without the commission that the bank or the system will take for the transfer. Second, p2p-services are less popular than exchangers and exchanges. Because of this, there are few offers to buy and sell cryptocurrency here, and if they exist, they are often for small amounts.
It is possible to buy and sell digital coins without intermediaries, for example, if you agree with a person you know in person.
The algorithm of a cryptocurrency exchange is simple. A seller creates an order to sell Bitcoin (or any other coin) and a buyer creates an order to buy. These orders go into what is known as an order book (orderbook), which records information about how much and at what price someone wants to trade.
When the trading interests of the buyer and the seller coincide, the corresponding bids cover each other and disappear from the order book. The deal is completed - funds are credited to users' accounts.
In most cases, while the interests of the parties coincide in the price of the cryptocurrency, they do not coincide in the volume of coins to be sold/acquired. In this case, the remainder of the order simply remains in the order book and is then covered in full by other offers. I.e. the seller's cryptocurrency can be redeemed in small portions. All this happens in automatic mode.
Digital money is gradually becoming widespread in the world. As a result, users have more opportunities to invest in cryptocurrency. Moreover, even banks are beginning to work with it. For example, in April, the British online bank Revolut opened the possibility of buying Bitcoin and other coins for all its customers.
Buying and trading cryptocurrency on IQ Option: the advantages
The company IQ Option was created relatively recently, but in a few years of its existence managed to turn from a newcomer on the market of brokerage services into one of the largest brokerage houses. The main factor that made such an explosive growth is the combination of high quality and democratic approach - IQ Option managed to make options trading available to as many people as possible without compromising the convenience of the platform, the support service efficiency and the variety of trading instruments.
To start buying crypto and trading on IQ Option cryptocurrencies you can register throw the link below:
Users can choose between two sorts of accounts: the "Standard" account, which requires a minimum deposit of $10, and the "VIP account," which requires a bigger amount of deposit. . Binary options, FX CFDs, stocks, commodities, ETFs, and cryptocurrencies are among the more than 300 financial instruments available for trading at the firm. Depending on the instrument, the leverage offered ranges from 30:1 to 1000:1. Clients can participate in a lucrative affiliate program that pays up to 50% of the company's profits in exchange for bringing in new customers.
Experienced traders note the company as a broker who is interested in the success of clients and does everything necessary for this:
- trains beginners;
- does not delay payments;
- builds a fast platform with good order execution speed;
- offers five types of assets for trading (stocks, options, cryptocurrencies, commodities, indices);
- technical support works around the clock, answering users' questions in online chat or by phone.
Don't miss out on the chance to practice on a demo account, learn about the available methods, or create your own trading strategy on the platform. To trade in the black, learn to read charts and employ indicators. Have successful trading!