Introduction to Bit coin Crypto Trading
Currency trading in basic terms involves buying and selling of cryptocurrencies on exchange markets (FOREX) with objectives to make profits from the market fluctuations. We have taken
The concept of crypto currencies still seem new but some basics concepts must be understood which are summarized in the questions below;
-What is crypto currency?
- Is crypto currency real money?
- What is block chain ?
- What are the different crypto currencies users care about?
- How are crypto currencies being shared?
- What is the role of cryptocurrency exchangers?
We have provided a quick starting guide to you on all these concepts right here on crypto Africa.
You can access some quick Videos on our Membership page here on what
You can maintain a cool head while we move to trading the digital gold which is the focus of this write up. Trading is a life changing exercise, you should have a cool head right now.
Let us get down to what we got for you in the world of crypto trading.
What is crypto currency trading?
This is a foreign exchange of crypto currency, meaning you are able to trade different crypto currencies like litecoins or ripple normally for USD or BTC and vice versa. Bitcoins trading had been commonly used to describe this form of trading based on the high volatility of bitcoins which has created millionaires and billionaires in the world today. Bitcoin trading thus involve the buying and selling of Bitcoins by making use of trading charts (support and resistance), candle sticks among others.
Crypto currency trading is another way of getting into the world of crypto: it doesn’t require mining wordwores of investing in bit coin cloud mining or bit coin hyips programs. (Which 90% of the program turns up to be scams).
Why Prefer Bitcoins trading and not FOREX?
Possibility of entering
It takes barely less than an hour to start trading crypto and earning money. You open an account and buy some crypto coins immediately if you wish to get started. The transaction goes in few minutes.
Whereas getting started with foreign is more complicated. As you need to open an account, do some verification which takes up to weeks. With Forex trading, It takes some days and even weeks to transfer money from your bank account to your forex broker. Crypto currencies are easy to handle. In the crypto world, you don’t need complicated documents to get an account. To get money in,to your account, you just need transfer the bit coin from the exchange site into your wallet and you are in control. Be your own bank with ”cryptos” bro.
A key advantage of bitcoin over foreign are the difference spreads. What are spreads they are the difference between bid and ask price.
Ask price refers to the minimum price that sellers want to receive and bid price is the maximum price that buyers are willing to pay for a security.
Let us illustrate this with the spread of GPY/USD. The ask and bid are 1.2938 and 1.2931 respectively (data from 13/07/2017). The spread is 0.0002% wise. This is a spread of 0.0002/1.2938 = 0.015%.
Now let us break down the spread in bitcoin to USD. The asked price for BTC IS 2336.5 USD. Whereas the bid price is 0.1 or 12336.5 = 0.004%.
Smaller spread signifies that, when you make an exchange, you have made nearly no lost .You have already lost 0.015% which is not insignificant. Never the less, it is important to check the transaction fees of your exchanger.
Leverage or Margin trading
For traders with a limited amount of crypto resources, the BTC or etherium there is an option known as margin trading in order to add leverage to the investment. This increase the amount invested without actually holding the asset, this featutre is possible on some crypto currency exchanges.
For example, if you have 500 USD in your account but you will like to buy crypto’s like bitcoin, ethereum and many others so you can protect them. The majority of crypto currency exchange wallet are free to obtain. My favorite wallet is crypto block chain for bitcoin and cryptonator for alt coins like monero, dash and others . Cryptonator has varieties of crypto currencies like litecoin, bitcoin, ripple, dodgecoins ,ethereum and more. You can get an all in one wallet on cryptonator to get started.
Crypto currency exchange
After you have gotten some bitcoins, the time has come to choose your exchange price. This is where you are able to buy and sell from one crypto currency to another one. You should note the currency trading pairs. There are exchange that permits you to only exchange bitcoin to ethereum but not ethereum to bit coin. This disturb the ability to trade fast. Before investing in the crypto industry, we have used some exchange websites which I recommend you to use such ;
I like these tow because they permit fiat to crypto just like on cyptoafrica Trading plat form.
We offer a very wild possibility of exchange from fiat money to crypto currency or from any legal or recognized crypto currency to another one. There is also the possibility of exchanging legal crypto currency to another one. There is also the possibility of exchanging legal crypto currency to fiat money. The transaction fee on crypto Africa is very insignificant and getting started is easy as in any plat form.
This is the beginning of our post on crypto trading
In this series we will explained candle sticks, candle stick patterns and analysis. Stay with us and enjoy the best way to make money trading cryptocurrencies.
You can join this series by witting us via firstname.lastname@example.org . we will be talking about candle sticks in the next post.