Cryptocurrency trading guide

Cryptocurrency Trading Guide

April 6, 2020

Reading Time: 7 minutes

Cryptocurrency Trading Guide

Any trader would agree that it is the trader’s job to take advantage of every opportunity in the market. Sometimes these opportunities come in the form of entirely new markets, cryptocurrencies are a good example of such opportunities. Most of us know about cryptocurrencies, however, we are reluctant when it comes to trading them because we feel that the business is too risky.

The reason why we would love to share our cryptocurrency knowledge is that we realize that knowledge is power, and we realize that we could equip a total beginner with the right tools and confidence to begin this lucrative trade.

However, it is not only for beginners, but we have also found a way to simplify the content even for crypto veterans. Our goal is to explain cryptocurrency trading in the simplest way to understand so that each one of us can make an informed decision about the tremendous opportunities availed to us.

Understanding cryptocurrencies

Cryptocurrencies are digital coins that are very similar to the traditional currencies we are accustomed to such as the Dollar, the Euro, and the Yen. At the same time, they have their own very unique features that distinguish them from our traditional currencies. Their first unique feature is that they are completely Virtual, which means that they do not have physical representations of their value, they operate fully online and are stored in virtual wallets. Secondly, they are highly decentralized, this simply means that they are not controlled or regulated by any central authority such are the banks or the government. The third unique feature is their creation, unlike traditional currencies, they are created through mining by users and not just created by the central bank and availed to the users. They are also based on Blockchain technology.

Blockchain technology is a digital ledger on which most cryptocurrency systems are built on. Cryptocurrency transactions are recorded publically and permanently; the records cannot be changed or erased.

Characteristics of cryptocurrencies

Some of the characteristics that distinguish cryptocurrencies include

  • Trustless
  • Immutable– transactions cannot be undone
  • Decentralized
  • Global
  • Purely virtual
  • Anonymity/ pseudo-anonymity – the user’s identity is protected
  • Limited supply/ scarcity

Uses of cryptocurrencies

We have been asked before whether cryptocurrencies are real money, and our answer to that question is always yes. This is simply because it has the same functions as our traditional currencies and it is even more secure and efficient. Some of the common uses of cryptocurrencies include:

  • Medium of exchange
  • Store of value
  • Unit of account
  • Private, low-cost money transactions
  • Store of wealth
  • Investment in early-stage innovations
  • Sending non-cash remittances
  • Payment method – you can receive crypto for posting content, renting out spare hard drive space to the cloud, you can also use it to pay for services and to pay school fees
  • Booking traveling tickets
  • Buying gadgets

Examples of cryptocurrencies

·         Libra·         Tether
·         Binance Coin·         NEM
·         Cardano·         Bitcoin Cash
·         Bitcoin sv·         EOS
·         Coinye·         Bitcoin
·         Dogecoin·         Litecoin
·         Ethereum·         Ripple
·         Monero

 

 

Merits and demerits of cryptocurrencies

Merits Demerits
EfficientLack of knowledge
SecureStrong volatility
TrustlessIt is a risky investment
Deflationary (increases in value)Not widely acceptable
Easy to useIrreversibility of transactions
Freedom
Global
1Low operation costs
Unlimited transactions
Fast transaction speeds
Anonymity
Doesn’t suffer inflation

 

 

Do we need to point out that the advantages transcend the disadvantages? Yes, cryptocurrencies have their challenges but the merits you enjoy are way more than the demerits involved.

Applications

  1. Travel industry – payment for flights, hotels, car rentals and cruises
  2. Real estate – you can use cryptocurrencies to buy a house and any other property
  3. Social media – you can cryptocurrencies on social media e.g. On Vanywhere which utilizes Blockchain technology by connecting users with specialized skills to other users who may require these skills. Transactions on these platforms are purely done through cryptocurrencies.
  4. Education – payment of school fees, payment of wages for teachers and other workers.
  5. Fundraising – many startups are going for cryptocurrencies for the funding of their ideas since it is easy to track their money this way.
  6. Fast foods restaurants – subway, snakes and lattes, pizzaforcoins are all accepting crypto as a form of payment
  7. Motor industry – fancy car such as the Lambo and Tesla can be bought using cryptocurrencies
  8. Retail industry – online shopping centers accepting cryptocurrencies as a form of payment
  9. Digital publishing – bloggers, publishers, and advertisers are opting for the crypto world both for payment and as content, it is a very lucrative industry.
  10. De-corrupting charities –cryptocurrencies can be tracked thus reducing corruption and theft within these organizations. The World Food Program has shifted to this as the mode of payment due to its security.

Cryptocurrency trading

Cryptocurrency trading involves speculating on the cryptocurrency price movement via a CFD trading account or buying and selling the underlying coins via an exchange. Cfds are trading derivatives that enable you to speculate on the cryptocurrency price movement without taking ownership of the underlying coins.

Buying and selling cryptocurrencies

First, you have to go to an exchange or a service that will allow you to purchase cryptocurrencies. Some of the biggest exchanges include

  • Binance
  • CEX
  • Localbitcoins
  • Poloineix
  • Bitfinex
  • Coinbase
  • Bittrex

Most of these exchanges allow the use of a credit card or link a bank account. Try as much as possible not to store your cryptocurrency at an exchange because it can be hacked. To be able to make any purchase on an exchange you have to create a profile.

How does the cryptocurrency market work?

Cryptocurrency markets are highly decentralized, what this essentially means is that they are managed and run by the users rather than by a central authority. Being highly decentralized means that the market is not affected by political or social issues. Some of the factors that can still affect the cryptocurrency market include:

  • Supply
  • Market capitalization, the value of all coins in existence
  • The press, how the press portrays cryptocurrencies affects their adoption and use
  • Integration, the ease of a cryptocurrency’s integration into the existing infrastructure is fundamental.
  • Key events such as updates, security breaches, and economic setbacks.

Storage

The storage of fiat currency is quite straight forward, either you store it in your bank account or your pocket in your wallet. Cryptocurrencies differ from traditional currencies in that you store your money in a digital wallet called a cryptocurrency wallet. Each wallet has a public address and a private key.  The public address is the address that people send funds to it is like an account number. The private key, on the other hand, is the password you use to access and operate your cryptocurrency. Here are some common types of crypto wallets.

  1. Online wallets – operated on websites or exchanges, can only be accessed when online.
  2. Mobile wallet – can be downloaded on your mobile phone and operated as an app.
  3. Desktop wallet – operated only on desktop computers.
  4. Hardware device wallet – stored in special hardware that is designed for the storage of cryptocurrency keys.
  5. Paper wallet – it is hacker-proof but also the least convenient option, the private key is written on a special kind of paper.

How to further protect your cryptocurrency

  1. Backup your wallet regularly and encrypt it with a strong password to protect it from thieves
  2. Store some of your cryptocurrency in an offline wallet for added security
  3. Update your software as regularly as you can. Hackers can only infiltrate software that has been around for so long.
  4. Do not share/disclose your address or other private information
  5. You can use multiple wallets for a different purpose

Crypto trading signals

Crypto signals are trading ideas or suggestions to buy or sell a particular coin at a certain price and time. These crypto signals are generated either manually, by a professional trader/traders or by trading algorithms and bots that send the trade signals automatically. There are various free crypto trading signals and free crypto signals but if you want something that you can rely on then you have to pay a subscription fee to most of crypto signal service providers. There are various plans available you choose the one that suits you best.

The crypto signal service providers will send you the trade signals directly through email, SMS or through any other fast means of communication, My Crypto Paradise sends the crypto signals through telegram, such as that is the best way to share it as fast as possible. The cryptocurrency trading signals are sent promptly so that you can take advantage of them.  A good signaling service should keep you up to date at all times providing you with the largest signals.

You may not be a very experienced cryptocurrency trader, but with the right crypto signals, you have a higher chance of making higher profits than other traders. That way we will stop leaving cryptocurrency trading to the professionals only, especially seeing that it is an amazing opportunity that people should not miss out on. Every investor wants to make the most of their hard-earned money. Unfortunately, most people do not know the right place to get their crypto trading signals from, and that is where we come in. Although there are very many signals providing platforms out there, most of people personal favorite is My Crypto Paradise, simply because we are one of the best businesses in the market.

Making all the difference

Cryptocurrency trading is not a gamble, you need a deep understanding of the market to survive and thrive. Understanding the markets requires both fundamental and technical skills that most traders are not equipped with.  Cryptocurrency signal providers smoothen your ride by maximizing your profits even with minimal understanding of the market. In all honesty, there is always a remarkable difference between a trader that utilizes a crypto trading signals service provider and one that does not.

Think of My Crypto Paradise as your Assistant, instead of you taking hours upon hours or even days to analyze the market you simply get the signals and market updates and analysis in a matter of seconds and you’re set to land huge profits. Come with us as we briefly break down what our impressive business is all about.

First and foremost, My Crypto Paradise just as the name suggests is heaven for traders. We have a team of professional market analysts that use up-to-date instruments to generate traders with a high probability of yielding profits. The signals are then provided to traders who may not have the time to undergo the rigorous analysis.

Most signal providers avoid giving free trading signals, however, that is not the case with My Crypto Paradise. They give new traders free signals as a “taste of the waters”. These signals are sent through its FREE Telegram Channel for everyone to use. Apart from the free signal option, there are paid signals available through ParadiseFamilyVIP private Telegram Channels. Currently, we have 3 private channels available for joining.

  1. MyBybitParadiseFamilyVIP
  2. MyBitmexParadiseFamilyVIP
  3. MyBinanceFamilyVIP

For the paid signals, you get signals regularly for major and minor crypto with complete input. There are up to 80 quality signals shared monthly, based on technical and fundamental analysis.

Conclusion

Crypto trading signals are now more than ever being embraced by traders and investors. It comes with several benefits such it saves your time, the signals are more profitable and they make a beginner’s experience way better. Of course, there are a few risks involved such as online scams, not getting returns and difficulty in starting, and this could discourage a trader. Don’t worry because, with a trustworthy signal provider, you are going to supplement your income.

 

Hope you have enjoyed this Cryptocurrency Trading Guide! Let us know your opinions in the comments section below. 

Start earning profit

We aim to provide our ParadiseMembers with as much information as we can to ensure to maximize long-term profit, no matter if we are in a bullish or bearish market. We are a large scale cryptocurrency community providing you with access to some of the most exclusive life changing crypotocurrency signals, analysis, guidance and much more

Trade crypto like a pro

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