VARIETY OF APPROACHES FOR ACHIEVING YOUR GOAL: PROFIT
Would you like to be a part of the exciting adventure that is trading?
Then, it is time for you to join the financial markets and start investing in the most profitable assets.
Learning how to trade can provide you with a superior lifestyle, only if you follow a few simple rules in terms of keeping your trading capital safe.
Crypto: The New Opportunity for Beginner Traders
Cryptocurrencies are by far the most exciting financial assets of 2018, giving traders some of the best returns.
Almost all investors are starting to show an interest towards this monetary revolution by actively buying and selling in the market to take advantage of their short-term price variations.
However, for newcomers to the world of cryptocurrencies, it’s normal to feel somewhat overwhelmed.
It’s understandable if you feel confused by the new terms and concepts associated with trading Bitcoin,
Ethereum, Litecoin and other altcoins - also known as “alternative digital currencies”.
No matter if you are completely new to the market, we, at AlphabetBTC will provide you with an introduction to get you familiar with the latest trading phenomenon…
What is the Cryptocurrency Market and how it works?
Cryptocurrencies are digital or virtual currencies that use cryptography to create money but also control and validate every transaction.
The very first cryptocurrency that set the course for the entire world of digital asset exchange to grow was Bitcoin however overtime we have seen the establishment of several more.
The five most significant in terms of market capitalization are Bitcoin, Ethereum, Bitcoin Cash,
Ripple, and Litecoin.
It all started in 2009 when a paper named Bitcoin: A Peer-to-Peer Electronic Cash System was published by an individual, or a group of people, called “Satoshi Nakamoto”.
This anonymous creator introduced an entirely new method of digital payment that is more convenient compared to those we are already familiar with.
This peer-to-peer online payment system allows users to send money (Bitcoin) from one person to another without the intervention of a third party such as a bank or any other financial institution.
The unique thing about this cryptocurrency is that there is no government or central bank, governing it which makes it a completely decentralized system.
Another benefit is that every transaction is executed pseudo-anonymously which is recorded and made visible to everyone in a general and public ledger.
The technology that makes all this possible is called “Blockchain technology”.
Its associated “distributed ledger technology”, doesn’t only apply to Bitcoin and other cryptocurrencies, its uses can also be widened to an enterprise level when creating contracts, sharing data and for other innovating services.
A growing number of companies are already enjoying the limitless possibilities of Blockchain technology including Microsoft Azure.
Cryptocurrency Trading: What can You Trade?
A way to start trading cryptocurrencies is by purchasing them and storing them in a so-called “digital wallet”.
The next step involves finding a cryptocurrency exchange to trade with. Note that cryptocurrency exchanges are not part of a regular stock exchange.
Another strategy that you can implement is using cryptocurrency brokers like CFD brokers, which enable you to easily trade digital currencies and other financial assets without owning them.
You can usually profit from leverage and margin trading through these brokers, enabling you to increase your market exposure and invest more funds even if you currently do not have a sufficient amount in your account.
Each market movement will then amplify your gains, as well as your losses.
Opening a position in the cryptocurrency market involves the same process as Forex.
It is all about buying/selling one currency while selling/buying another simultaneously.
When it comes to cryptocurrency trading, you must open a position on a virtual currency to bet on its rise or fall against another cryptocurrency or fiat currency.
In addition to that, there is a currency pair which includes a base currency and a quote currency. The base currency, also known as the transaction currency, is the first one displayed in a currency pair while the quote currency, or counter currency, is the second.
With a currency pair like BTC/USD - Bitcoin (BTC) is the base currency while the American Dollar (USD) is the quote currency. If BTC/USD = 4,638, then it means that 1 Bitcoin is worth 4,638 USD.
You can trade cryptocurrencies against the most common and widely used fiat money such as the American Dollar (USD), the Euro (EUR), the Chinese Yuan (CNY), the Japanese Yen (YEN).
There is also the option to exchange them against other cryptocurrencies. For example, you can trade Ethereum against Bitcoin (ETH/BTC), Ripple against Bitcoin (XRP/BTC) or Litecoin against Bitcoin (LTC/BTC).
It is up to your broker to determine which currency pairs are available to trade.