A Guide to Cryptocurrency and Forex Trading

Written by AshishSharma34 | Published 2019/06/19
Tech Story Tags: trading-system | trading | bitcoin | forex | cryptocurrency

TLDRvia the TL;DR App

There are different ways through which people trade forex and other assets in the financial sphere these days. With the introduction of the different cryptocurrency through the use of the blockchain, the trading platforms have taken a whole different outlook.

Traditionally, forex trading platforms have had various difficulties and challenges in the not too far past. The solution, however, seems to be proffered by the different available cryptocurrencies operating on the blockchain technology platform. In order to fully shed more light on this, it is important to consider what the blockchain technology is.

What Is Blockchain Technology?

As the name already states, the blockchain technology is a sequence of blocks which are chained together and made available through a publicly available ledger. This ledger is distributed among the users on the network of this technology. The blockchain network is very beneficial for several reasons:

· Security of data

· Immutable ledger

· Fast transactions

· Worldwide Reach

· Increase financial security

What Is Forex Trading?

This is the decentralized global market where different currencies from different people from around the world are traded. Through the different forex trading platforms, more than $5 trillion is being traded per day. The foreign exchange or better still, currency exchanger, is the most liquid market in the world.

Through forex trading and its different trading platforms, there are investment opportunities that include the profitability of interested parties. You can completely go from a total novice to a professional forex trader in a short period. To accomplish this, you need to trade on the online forex trading platform.

What Are Forex Trading Platforms?

These are platforms through which you can carry out your currency exchanges form anywhere around the world. Through forex trading platforms, you get the pathway to trading your preferred currencies.

There are several platforms through which you can trade. Trading platforms now have different seasoned traders that can direct your trading patterns for the best result. There are numbers of useful top-notch information to improve your knowledge of trading.

Cryptocurrency Trading

Unlike fiats or traditional currencies, the cryptocurrencies are digital currencies which are totally decentralized. They work on the blockchain technology platform for various uses.

These cryptocurrencies are not being controlled by any central administrator. This has made the usefulness of the different cryptocurrencies increases and for different purposes.

The trading of the different cryptocurrencies is quite different from the traditional trading method. Instead of trading with the traditional fiat currency, the cryptocurrency trading platform uses different cryptocurrencies for trading. The cryptocurrency trading platforms also runs on the blockchain technology platform.

Popularly known cryptocurrency, Bitcoin, is one of the world most traded cryptocurrency. Learning how to trade Bitcoin and other cryptocurrencies is a powerful skill for you. Since making a profit on the forex trading platforms is basically hinged on the difference in prices, the cryptocurrencies and digital assets are well known for their volatility and constantly changing prices. If you can understand which to buy and sell and at what period, you are well equipped to make a profit.

The trading of the bitcoin started as far back as 2009. At that time, the bitcoin was worth about cents and the early buyers are now liable to make millions of dollars if they decide to sell now. Through the cryptocurrency trading, a number of traders have become million dollars rich today.

How to Trade Cryptocurrencies On Trading Platforms?

Similar to the traditional foreign exchange platforms, the cryptocurrency trading platforms are there for the trading and exchange of cryptocurrencies. Between two parties, the cryptocurrency trading could occur by exchanging cryptocurrencies with another cryptocurrency. It could also be carried out by exchanging cryptocurrency with fiat currency. All these depend on the trading platform and the laid down policies.

Another notable way of trading cryptocurrency is through the exchange of crypto contract for difference (CFDs). Trading through this method, you trade through a preferred cryptocurrency broker or bitcoin trade broker. Through the contract for difference method, you do not necessarily have to have any cryptocurrency to trade. There are a number of benefits for trading using the contract for difference avenue. Some of which include a bigger profit on the cryptocurrency trading activities of the trader. Also, you do not get to worry about the security and storage of your digital currency.

Finding the Right Broker Online

There are several top online brokers which you can trust with your cryptocurrency trading activities. Finding the right broker and the right online platform to trade on is the main issue.

Signing up with a trusted and reliable cryptocurrency broker is quite important. You get direct forex and cryptocurrency trading actions through access to a wide range of digital assets and currencies on the secured trading platform.

It is very important that you register with a top broker for the success of your online trading actions. The broker offers you all that you need for effective and successful forex and currency trading activities. The offered advantages include

· Access to charting and analytic tools

· Depth of educational resources on trading

· Less stress banking process

· Unique trading preference and trading methods

There are exchange brokers regulation body which regulates the activities of brokers. You can rest assured of the different activities carried out by your preferred exchange broker. You can get online broker reviews of online exchange brokers that you can trust with your exchange activities.

Wrapping it up

With a wide range of trading exchange platforms and a huge number of registered brokers on these platforms, it is very important that you settle for a trusted online exchange broker. You should always look out for a transparent and secure trading platform. This could also have a multilingual service with a wide choice of tradable assets and currencies.

Also, you must bear in mind that your trading action would bring both profits with a few loses. You should be able to bear these loses and enjoy the profit when it comes.

Happy trading!

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Published by HackerNoon on 2019/06/19