Cryptocurrency Trading How-To: Why should I Trade and Invest in Cryptocurrency?
Trading Cryptocurrencies is just like the traditional Buying and Selling of goods for profit. With the recent prize hike in Bitcoin, it's no suprice why a lot of people are searching for how to trade in cryptocurrency. In this article, I will try to walk you through a beginner guide on trading with cryptocurrency, best platforms to trade cryptocurrency and tips on crytocurrency investment.
How to trade with cryptocurrency
When you buy any Cryptocurrency coin or token at a certain price, and you sell it higher than the price you bought it, you just participated in Trading that particular Cryptocurrency coin or token.
How does cryptocurrency trading work?
The main idea in Trading Cryptocurrency is Buying Low and Selling High for profit. For instance, you buy Bitcoin at $5,000 and you sell at $5,500, you just made 10% profit from that trade. We have Scalpers, Swing traders, day traders and short term traders.
Cryptocurrency Investment
On the other hand, an Investment is an asset or item acquired with the goal of generating income or appreciation over a period of time. When you invest in any Cryptocurrency coin or token, you buy and keep it safe hoping to sell in the future when the value of the coin or token has appreciated over time.
For instance, you bought Bitcoin at $4,000 last year 2020 with the aim of investing and you sold this year 2021 at $50,000, you just made 1,250% profit from that investment.. This is possible due to the high volatility in Cryptocurrencies markets. Keeping your money in the Bank for one year won't give you such ROI but Cryptocurrency can give you much more within a year. Always remember to invest what you can afford to loose.
Is it too Late to Invest and Trade in Cryptocurrency?
There's a popular Chinese proverb that says: “The best time to plant a tree was 20 years ago. The second best time is now.” No company or financial institution invested in Cryptocurrency 5 to 10 years ago. This year 2021, Tesla, led by Elon Musk, confirmed that it purchased about $ 1.5 billion in Bitcoin in January and expects to start accepting it as a payment in the future. Michael Saylor, CEO, MicroStrategy Incorporated now holds over 90,000 Bitcoins, reaffirming our belief that Bitcoin, as the world's most widely-adopted cryptocurrency, can serve as a dependable store of value.
Apple Pay, Visa, Mastercard, PayPal have all adopted Cryptocurrency. So weare still very early and I can say we are just getting started.
If you are one of those thinking that the opportunity is long gone, Bitcoin price is way too high and you can't afford it, i want to let you know that Bitcoin is not the only Cryptocurrency to Trade and Invest in.
We have Altcoins (Alternative to Bitcoin or All other digital currency) with solid Fundamentals and real world usecases that solves real world problems that we can Trade and Invest for maximum ROI (Return on Investment). I will be posting about Altcoins to Trade and Invest for this Year. 2021.
Trading platform for cryptocurrency
Watch this space.
