Cryptocurrency trading refers to speculating on the price fluctuations of cryptocurrencies through the use of a contract for difference (CFD) trading account or buying and selling the underlying coins through an exchange. The platforms where cryptos are traded are referred to as Cryptocurrency Trading Platforms.
I am got to go a little technical here with a bit of information about terms like CFD, Margin, and Leverage Trading. If you want to quickly glance at the Best Cryptocurrency Trading Platforms directly, you can scroll down.
CFDs, Margin Trading & Leverage Trading
CFD trading is a derivative that enables investors to speculate on the price movements of underlying assets such as Bitcoin (BTC) without owning the assets themselves.
For instance, if you feel that the value of a cryptocurrency will increase, you may “go long” (purchase). And if you believe that the deal will decrease, you can “go short” (sell). Both are refer to as leveraged products, implying that you need a small investment to have 100% exposure to the underlying market.
This type of trading is known as margin trading crypto. Leverage trading with cryptocurrency, on the other hand, multiplies both gains and losses. This is because your profit or loss is still decided based on the total size of your investment.
In addition, investors utilise cryptocurrency options to minimise risk or enhance their exposure to the market. The term “crypto options trading” refers to the “derivative” financial instrument that obtains its value from the price of another asset, in this instance, the underlying cryptocurrency. This value we get from the cost of the cryptocurrency.
It is essential to comprehend the assets and technology involved in cryptocurrency trading before one can even begin to entertain the idea of engaging in such a business. Bitcoin is the groundwork upon which the development of hundreds of additional cryptocurrencies has started.
How to trade cryptocurrency for beginners
When it comes to buying and selling cryptocurrencies, a wide variety of strategies are available. One must first possess a sufficient understanding of the topic before beginning to trade in cryptocurrencies. It is also essential to be aware of the potential hazards involved and the regulations that might be applicable depending on one’s location, and judgments should bedone appropriate.
Through the article we will take the example of Bitcoin for trading so its easier for you to interpret.
Trading in cryptocurrencies requires the following steps.
1. Register with a bitcoin trading platform.
Unless you currently have bitcoin in your possession, you will need to register for an account with a cryptocurrency exchange. Kucoin, Bybit, and Binance are the most significant cryptocurrency brokerages currently available.
These three sites each provide a user interface that is simple to navigate and a diverse selection of alternative cryptocurrencies from which to choose. We will understand more about them shortly.
You will be required to provide personally identifying information to create an account with a cryptocurrency brokerage, just as you would be required to do so with a stock brokerage. Know Your Customer (KYC) regulations demand that you provide certain information about yourself to create an account.
These criteria include your address, date of birth, Social Security number (if you live in the United States), and email address.
2. Put money into your account.
After registering with a cryptocurrency brokerage, you must link your existing bank account to the brokerage. Most cryptocurrency exchanges support deposits from banks through debit cards and wire transfers.
3. Choose a cryptocurrency to put your money in.
Most people who trade cryptocurrencies invest their funds in Bitcoin and Ethereum. Both are the most famous cryptos. However, the price movements of major cryptocurrencies are more predictable than those of the smaller altcoins, making it easier for traders to use technical indicators.
A significant amount of capital from bitcoin investors is in alternative cryptocurrencies. Small and mid-market cap cryptocurrencies offer more considerable upside potential, even though they are associated with a higher level of risk.
4. Start trading
As a trader, you can make money by “buying low” and “selling high” on any of these cryptocurrency trading platforms. You can even connect them with automatic trading bots to automate your trading.
You can make money, maintain your coins, or diversify your portfolio with automated crypto trading. This trading method may give you a conservative, neutral, or aggressive approach to trade. You may even look into actively trading cryptocurrencies on certain websites while automating trading on others.
5. Put your bitcoin in cold storage.
If you want continued access to your money while actively trading Bitcoin, you’ll need to keep them stored on the exchange where you bought them. If you plan to keep your bitcoin holdings for a medium to a lengthy period, you should get yourself a Bitcoin wallet.
There are two types of bitcoin wallets: software wallets and hardware wallets. Software wallets are more common. Both options are secure; however, storing your bitcoin on a hardware wallet, a physical device that is not linked to the internet, offers the highest level of safety. Examples of Hardware Wallets are:
Next, we will move to the topic in discussion i.e. Top Cryptocurrency Trading Platforms.
Best Cryptocurrency Trading Platforms
|Cryptocurrency Exchange Platform||Weblink||Platform Review|
|Kucoin||Visit Site||Kucoin Review|
|Bybit||Visit Site||Bybit Review|
|Binance||Visit Site||Binance Review|
|Bittrex||Visit Site||Bittrex Review|
|Kraken||Visit Site||Kraken Review|
We chose Kucoin as the best Cryptocurrency Trading Platform for beginners because it has an easy-to-use interface, a lot of information on how to use it, and robust security features.
If you know about Cryptocurrency Trading Platform, you’ve probably heard of Kucoin. The exchange is one of the biggest and boasts of serving one out of every four crypto users. You can trade over 780 cryptocurrencies which is remarkable by any standard.
With a simple sign-up process that makes trading more accessible, the Kucoin platform makes it easier for people to start investing in cryptocurrencies. At the same time, its interface makes it easy to move around the venue and manage crypto.
Kucoin also has a wide range of learning materials that are easy to find and use. It has resources that teaches users how to trade specific cryptocurrencies and gives them free crypto for doing so, encourages users to use these tools.
Lastly, it’s essential to talk about the security features of the exchange: Kucoin uses two-factor authentication on all versions of its platform, stores 95% of customers’ crypto offline.
Even for advanced users, Kucoin gives them a more advanced Cryptocurrency Trading Platform and charting tools may wish to check it out.
We chose Bybit, the most secure Cryptocurrency Trading Platform, because it has multiple layers of protection against crypto fraud and cyberattacks.
Most trustworthy crypto exchanges have robust security systems, but Bybit stands out in this area. The Cybersecurity Ranking and CERtification Platform list the business as the most secure of the top 100 firms.
Bybit uses offline cold storage for all cryptos, a regulated custodian bank account for traditional currency, and regular software peer-review to keep users’ cryptos safe on its trading platform. It uses multiple ways to prove who you are, like a password, biometric, email, phone, and authenticator.
Its platform has also passed several penetration tests, simulated cyberattacks used to test system security, and has shown proof of its funds over the years.
Bybit has more to offer than just security. The exchange has more than 340+ different coins.
Other important features include its non-custodial Defi wallet, which lets users send cryptocurrency at the speed of their choice and earn interest on coins, margin trading, prepaid Visa cards that can be used to spend cryptocurrency, and crypto loans.
We chose Binance.US as the best Cryptocurrency Trading Platform for low fees because it has one of the most generous fee structures of all the trading platforms we looked at.
Binance is the largest cryptocurrency exchange in the world in terms of trading volume, and its US partner, Binance.US, has many of oU.S.the same benefits as Binance. One of its best features is that it has a maker/taker fee structure that is competitive and goes up to 0.1%. This fee starts low and keeps going down as the number of trades you make increases.
Binance.US also discounts when one of the most popular utility tokens in the world, Build and Build (BNB), is used to buy and sell other coins.
The exchange has more than 380 cryptocurrencies, all of which can be bought in USD. This saves people who want to buy crypto directly money on conversion fees. This wide range of discounts and ways to purchase is suitable for advanced users, who may also like the platform’s detailed market dashboards, margin trading, and different types of orders, such as limit orders, market orders, and stop limit orders. Hawaii, New York, Texas, and Vermont don’t have the US.
We chose Bittrex as the best-Cryptocurrency Trading Platform because it is a highly regulated platform.
Bittrex provides users with advanced trading tools and options like stop limits, stop orders, and advanced charts. It is a Seattle-based exchange and one of the few regulated exchanges.
It supports over 350 cryptocurrencies and is highly secured. A possible drawback of the exchange is its scarce choice of fiats for trading. It only supports USD.
Kraken says that it is “the Cryptocurrency Trading Platform for everyone.” This platform is best for crypto investors who have done it before and like low fees. Transaction fees can add up quickly for traders who trade every day or very often. Traders with a lot of experience can use advanced order types and switch on margin and futures.
Kraken is also a good choice for people who are just starting and want to buy and hold. Kraken has a wide range of coins, and its Instant Buy Platform makes it easy to buy them.
They also have different ways to help customers, such as chat boxes and phone support. They are also an excellent way for people who want to learn more. Kraken isn’t available in all 50 states and only takes a small number of fiat currencies.
A recent news story says that more than 10 billion Indians own cryptocurrencies. During this holiday season, the number is likely to go up even more. We present a list of best Cryptocurrency Trading Platform for your convinience.
But, like trading stocks and commodities, trading in cryptocurrencies is full of risks and traps. For crypto trading to pay off in the long run, traders need to come up with strategies that make trading fun and safe at the same time. Let’s start by talking about some strategies that can help you make money.