How to Trade Cryptocurrency

Published: September 25, 2020 by Andrew

Cryptocurrency Trading in recent years has given the smartest traders immense satisfaction, in the same way that it has generated losses for those who have made the wrong choices. For this reason many traders start learning How to Trade Cryptocurrency.

In any case, the high number of traders who have achieved spectacular results (many have even become millionaires) always keeps the interest in cryptocurrency trading very high.

In this guide we explain in detail how it is possible to trade cryptocurrency without errors. We will also talk about some of the best cryptocurrency trading platforms such as eToro or ForexTB (but there are many others that are worth using as well).

Start to trade cryptocurrency

First of all, before starting to trade cryptocurrency, it is appropriate to focus attention on what cryptocurrency trading is. Cryptocurrencies, to start with, are a particular form of digital currency that is handled using cryptography.

In the vast majority of cases, cryptocurrencies are based on a blockchain and a distributed database. In practice, the management of the typical cryptocurrency such as Bitcoin or Ethereum is completely decentralized. The only important cryptocurrency with a higher level of centralization is Ripple.

Cryptocurrencies, with Bitcoin in the lead, are regarded as the currency of the future. The fact that they are not subject to inflation makes them very attractive for investors looking ahead.

In any case, it is a truly brand new and very volatile financial asset: this means that the price can rise or fall quickly.

For smart traders this is not a problem, indeed it makes cryptocurrencies a particularly valuable asset: trading cryptocurrencies means, in fact, taking advantage of any price change (both positive and negative) to make a profit.

Many beginners think that to make money with cryptocurrencies it is necessary to buy when the price is low and sell when the price is high. It is certainly a strategy that works, but the price of cryptocurrencies is subject, from time to time, to even severe falls.

For this reason, it is always advisable to use short selling: it is a speculative operation that allows you to make a profit when the price of a financial security (in this case cryptocurrencies) decreases. Conceptually, it is equivalent to selling something you don’t own.

Trade Cryptocurrency Platform

Obviously, cryptocurrency exchanges do not allow you to carry out any short selling operations: with exchanges you can only buy and keep.

An even bigger problem of exchanges is the lack of any security standard: unfortunately, the history of exchanges is literally full of scams, failures and hacker attacks with disastrous endings.

A few examples? The famous Japanese exchange MtGox which went bankrupt in February 2014 by burning the Bitcoin assets of thousands of investors. Or Quadriga, a Canadian exchange that blocked $ 130 million in Bitcoin because the only one who knew the access key, the founder, died mysteriously.

In short, trading Bitcoin with exchanges is not safe and not easy. That is why most of the more savvy traders much prefer to operate with more traditional trading platforms that also offer the possibility of operating on cryptocurrencies. Using these platforms for cryptocurrencies have several advantages.

These are platforms that have already been operating for many years in traditional markets such as the Stock Exchange or Forex and which are supervised by the competent authorities.

Some of these platforms have recently begun to allow Bitcoin and other cryptocurrencies to be traded online, providing several benefits to traders:

  • Safety: they are authorized and regulated platforms
  • Possibility of always earning, even when the price of cryptocurrencies falls
  • Great simplicity, some of these platforms are simple and intuitive (or offer additional benefits for beginners)
  • Convenience: the best platforms allow you to operate without costs and without paying commissions, exchanges instead are usually quite expensive.
  • Possibility of operating directly in euros: with these platforms it is possible to buy any cryptocurrency directly with euros, exchanges often impose the passage in dollars and, in most cases, to buy emerging cryptocurrencies it is first necessary to buy Bitcoin and then use them. Obviously this involves the payment of a double commission.
  • Possibility to apply leverage to further multiply profits

But what are the best cryptocurrency trading platforms? We have reviewed some of the best ever.

Platform: etoro
Min. Deposit: 50€
License: Cysec
  • Social Trading (Copy the best)
  • Simple and intuitive
  • ➥ Start
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    Platform: xtb
    Min. Deposit: 100€
    License: Cysec
  • Free demo
  • Whatsapp Group
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: iqoption
    Min. Deposit: 10€
    License: Cysec
  • Free demo without limitations
  • Minimum deposit low
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: ubrokers
    Min. Deposit: 250€
    License: Cysec
  • Free Training
  • Zero Commissions
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: trade
    Min. Deposit: 100€
    License: Cysec
  • Free demo
  • Free course trading
  • ➥ Start
    1star 1star 1star 1star 1star
    72.30% of retail CFD accounts lose money
    Platform: forextb
    Min. Deposit: 250€
    License: Cysec
  • Free trading course
  • Free trading signals
  • ➥ Start
    1star 1star 1star 1star 1star

    ForexTB

    ForexTB is considered to be one of the best trading platforms in Europe. In addition to cryptocurrency trading, it also allows you to operate on stocks, commodities and many other traditional financial securities.

    How come an impressive number of newbies are using ForexTB to trade cryptocurrencies? First, because it is really very simple and intuitive. Even a beginner is able to use ForexTB without any problems.

    All subscribers also get free phone support from a true cryptocurrency expert. The precise indications of this expert are precious and those who follow them are guaranteed not to make mistakes.

    Those who want to learn more have the opportunity to download an excellent ebook for free, the best trading guide available today.

    This ebook has been downloaded hundreds of thousands of times because it is free (the other guides also cost a lot), it is easy to study even for a beginner and above all it explains things in practice, as you make money with trading. So he doesn’t waste time with unnecessary theory. You can download the ebook for free by clicking here.

    The advantages of ForexTB do not end there: all members can use the platform in demo mode, without restrictions and without limits. With the ForexTB demo, you can experience risk-free cryptocurrency trading, so you can then go for sure when using real money.

    You can sign up for free on ForexTB by clicking here

    If you want to know more about this broker, read our full review on ForexTB.

    eToro

    eToro is a great opportunity for all those who are approaching cryptocurrency trading for the first time and want to avoid making mistakes. In addition to providing traders with a very simple and intuitive interface, eToro offers a unique and rare opportunity in the world of online trading: copying the best traders.

    Thanks to the patented Copytrader system it is possible to easily find the traders who have earned the most in the past with the minimum risk. These traders can be selected for automatic copying: the software system will take care of replicating all their operations in real time.

    This system guarantees two immediate advantages to beginners: they can immediately get spectacular results (the same as the best traders in the world) and they can learn to trade online by observing what the best traders do.

    You can sign up for free on eToro by clicking here

    If you want to know more about this broker, read our full review on eToro.

    Trade.com

    Trade.com is an innovative, particularly affordable and fast growing solution for trading cryptocurrencies and traditional financial assets.

    It is characterized by its great ease of use and the very high level of customer service. In practice, traders who operate with Trade.com have the opportunity to be guided step by step by real experts, to avoid any mistakes.

    Trade.com offers one of the best collections of video courses dedicated to trading and cryptocurrencies, an indispensable resource for those who want to learn the best secrets to make money with online trading. You can access the Trade.com videos for free by clicking here.

    Trade.com also offers an excellent free demo, unlimited and without constraints.

    You can sign up for free on Trade.com by clicking here

    If you want to know more about this broker, read our full review on Trade.com.

    Iq Option

    Iq Option is a cryptocurrency trading platform widely used by beginners for two main reasons:

    • It is really simple and intuitive to use
    • It allows you to start trading cryptocurrencies with only 10 euros

    In short, Iq Option has broken down any type of entry barrier to trading: it is really simple (everyone can use it) and it only takes 10 euros to start, while in the case of other platforms it takes between 100 and 250 euros.

    Iq Option also provides all members with a large educational section with hundreds of video courses that explain trading (cryptocurrencies and other financial stocks) starting from the basics up to the most complex and profitable strategies.

    Beginners also particularly appreciate the Iq Option demo, obviously unlimited and without constraints.

    You can sign up for free on Iq Option by clicking here

    If you want to know more about this broker, read our full review on Iq Option.

    Tips to better Trade Cryptocurrency

    The first useful tip for those who want to get the most out of cryptocurrency trading is to use only authorized, safe and honest platforms. We have already published reviews of the best platforms in the previous paragraphs, especially for those with little experience.

    Those who want to get the most must know some simple tricks that unfortunately very often beginners ignore.

    For example, it is important to set a stop loss on each trade. The stop loss requires the platform to close a trading operation when a certain level of loss is reached. In practice, with stop losses it is the trader who decides how much he is willing to lose in case everything really goes wrong.

    This is a spectacular tool for risk control but many novice traders don’t even know it.

    This is why it is important to study when you start, we always suggest you download this free ebook (and of course read it carefully, just download it is useless).

    Another very important element to take into account is the fact that the price of cryptocurrencies does not always go up. Many beginners are really fascinated by the price rises of Bitcoin and company and therefore constantly aim for the upside.

    The problem lies in the fact that cryptocurrencies are characterized by a high level of volatility and therefore, sooner or later, there is a thud. We have already explained that price falls are absolutely not a problem, rather they are an opportunity for profit. Stop selling short!

    To trade cryptocurrencies and make money no matter if the price goes up or down, it is enough to make a correct forecast.

    How are cryptocurrency predictions made? It is possible to use technical analysis or fundamental analysis but there are also other solutions that are particularly appreciated by beginners.

    How to trade cryptocurrency automatically

    One of the best solutions for a beginner starting from scratch is to do automated cryptocurrency trading.

    Theoretically, there are many different possibilities for automatic trading, there are robots and algorithms that can be bought on the internet.

    In practice, unfortunately, the vast majority of these solutions do not work and, often, they are real scams from which it is advisable to stay away.

    One of the very few forms of automatic trading that really works is represented by eToro: it is curious that in this case the operations to be done on the market are not determined by an algorithm or artificial intelligence but always depend on human intelligence.

    In the case of eToro, in fact, the automatic trading software simply takes care of automatically replicating the operations of the best traders in real time, without modifying them.

    Cryptocurrency to trade, the main ones

    There are hundreds of cryptocurrencies today: some, like Bitcoin, have a very high capitalization, others are little more than case studies from which it is better to stay away.

    What are the best cryptocurrencies to invest in? Most traders usually bet on Bitcoin but emerging cryptocurrencies can also be an excellent asset, as long as they have a medium or high capitalization.

    The beauty of emerging cryptocurrencies, in fact, is that it is possible to make predictions easily given that their price is closely related to that of Bitcoin: when the price of Bitcoin rises, the price of other cryptocurrencies also rises and, vice versa, when it falls, it falls. also that of the others.

    We have selected the best cryptocurrencies to trade on, all serious projects and with an adequate level of capitalization:

    • Bitcoin
    • Bitcoin Cash
    • Ethereum
    • Ripple
    • Ethereum Classic
    • Litecoin
    • DASH
    • NEO
    • NEM
    • Monero
    • Cardano (ADA)
    • Stellar Lumens
    • IOTA
    • EOS
    • Tron
    • Zcash
    • Binance Coin
    • QTUM
    cryptocurrency trading

    Conclusions

    Cryptocurrency trading is a high-yield speculative investment, particularly appreciated by traders due to the high level of volatility of the cryptocurrencies themselves.

    Spectacular results can be obtained but it is important to operate on the best cryptocurrencies, avoiding little-known or low-capitalization projects, and above all it is necessary to use the best trading platforms.

    In this article, we have presented accurate reviews of the best platforms for trading cryptocurrencies.

    Is it worth to trade cryptocurrency?

    Cryptocurrencies are among the assets that have had the highest return performance in the last 10 years. They are still volatile but offer excellent investment opportunities.

    Where to start when trading cryptocurrencies?

    Surely by choosing one of the best cryptocurrency platforms, to operate safely and with the right tools.

    What are the cheapest cryptocurrencies?

    It is very difficult to establish this in advance, however, to be on the safe side, Bitcoin is the crypto that largely influences the performance of all other Altcoins.

    Is it possible to trade cryptocurrencies on Demo?

    Yes, platforms such as eToro provide a free Demo to practice and practice. Highly recommended solution before investing with real money.

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