The cryptocurrency market has exploded over the last few years, with Bitcoin being the most famous type of digital coin. People all across the globe are getting involved in crypto trading. Are you wondering what the hype is about? Maybe you’re interested in getting started, too? Let’s take a look at what crypto exchange means and why it has become so popular.
Getting started with crypto
The interest in crypto trading is still on a rapid increase. If you, like many others, are new to crypto trading, you can benefit greatly from reading up on advice and tips.
By using guides, you increase your chances of being successful and making money. Have a look at Cryptoholics for all the tools and guides needed for crypto trading.
There are a huge number of different cryptocurrencies available. All of them are digital money, meaning it’s a non-physical, alternative kind of payment, created using encryption algorithms.
The basics of cryptocurrencies
Cryptocurrencies can be compared to arcade tokens, and even gold, in the sense that you need to exchange real currency for cryptocurrency and vice versa to access services and goods. Trading with crypto means you’re buying and selling digital currencies on an exchange while trying to predict price fluctuations.
Crypto uses blockchain to record transactions. It’s a decentralised technology that keeps track of every single digital coin that’s been sent or received. This means you don’t need a third party or middleman, like a bank. The transactions are secure thanks to blockchain technology, and almost instant.
Choosing a platform for crypto trading
It’s important to pick a trading platform with a good reputation. Creating an account should be simple and safe, and the interface must be easy to use.
The platform eToro is designed in an innovative way that allows the users to discuss strategies and ideas with each other. As a beginner, you get valuable advice and can copy the trades of experienced investors.
What is a crypto exchange?
In order to start out with cryptocurrency trading and get hold of the digital coins, you need to exchange your money. A crypto exchange lets you buy and sell cryptocurrency, either by exchanging one crypto for another or by using normal currencies like dollars and euros. This is also where you can convert the digital money back to your desired currency and withdraw it to your bank account. Crypto exchanges are open 24/7.
Why crypto is so popular
Bitcoin was the first cryptocurrency to be launched, back in 2009. Today there are thousands of different cryptocurrencies on the market, like Ethereum, Litecoin and Tether.
So why has this type of trading gained such fame worldwide? Here are some of the most common arguments from crypto traders:
- Low fees and safe transactions.
- An increasingly common type of payment that can be used globally.
- Not associated with governments.
- Potential to make big profits short-term because of high volatility, and potentially also long-term.
- Easy to get and easy to start trading with.
- Seen as the future of money by many people.
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