The more people who use a certain crypto versus the amount of coins in circulation forces a rise in prices. Of course, other external events, as well as events in the cryptosphere, will cause fluctuations along the way. But, overall, cryptos were designed to become more valuable over time. Throughout the history of money mankind has become adept at making wagers as to such fluctuations in value. Stocks, bonds, and other investment opportunities has bred a group of individuals and companies who make a living from such wagers. And, regardless of the intent of the crypto creators, those individuals have done the same with these currencies. So, now we have a crypto market. If you're willing to bet your own funds on this market, it's really quite simple to get started; the concept, regardless of the investment, is easy; buy low and sell high.
The first thing you need is a wallet. Most people start with a Bitcoin wallet. Bitcoin can be traded for other cryptos, gift cards, bank transfers, etc. There are very few limits on what consumable or type of funding you can use to trade Bitcoin. Ethereum is the same; but far more expensive. The ETH blockchain gave us the creation of Smart Contracts; which are more advanced cryptographic computer programs that can automate an entire company. Through these Smart Contracts a plethora of new coins, called tokens, have been built to support a variety of crypto projects and companies around the world. So, ETH can be used to buy and sell those tokens, each of which holds its own value depending on the project, company, team, software and idea back it.
While there are large crypto exchanges (like Kraken) where a trader can sign up, verify their identity, and place their money into a platform in order to buy and sell various coins, tokens and fiat (cash); these platforms, in my opinion, defeat the purpose of cryptos in that they require the user to wait days, or weeks, to make exchanges.
Another option is direct trades through platforms like LocalBitcoins and LocalEthereum where traders can place, or answer, ads for trades. A user simply transfers in the amount of crypto they want to trade, make a deal, crypto is placed in escrow and held securely until the payment is verified as received. The issue here is that scammers abound; leaving the trader basically on their own and unable to conduct business in safety.
Paxful is another option where traders meet to make trades (mostly in Bitcoin). We have found this platform to have the best customer service and protection from scammers from their excellent staff of admins. However, the user must still be on guard.
The fastest and safest manner of transfer and exchange between fiat and a wide variety of cryptos are platforms like ShapeShift and Changelly. These offer almost instant transfers between currencies with a minimum of fuss. However, these methods of exchange cost a few dollars more per trade.
So, where you are left with a decision is; are a few dollars worth more to you than jumping through hoops, waiting days / weeks on end, or worrying about scammers?
In our opinion, and in our experience, We prefer to pay a couple of dollars extra for the instant exchange over those other issues. Regardless of your chosen method of trading, be aware of the scammers, and never, ever, for any reason, keep any more funds on an exchange any longer than it takes to make a trade; then instantly put your funds back in your own personal, private, secure wallet in order to maintain control over your money.
Good luck with your trades and Happy HODLing!!!
Cryptocurrency Investing: Challenges & Opportunities
Posted in Crypto Trading on Mar 20, 2018“Crypto Currency Trading” is supposedly the next "big thing". But, is it really something you want to do? Let's look first at the very nature of Cryptos and what they really are.
Cryptocurrency Trading Patterns
Posted in Crypto Trading on Apr 08, 2018Range-bound trading is a trading strategy that seeks out, isolates and capitalizes on a commodity trading in price channels.
Crypto Currency Prices Influence Factors
Posted in Crypto Trading on Apr 08, 2018Market price is driven by several factors. Many of which are over my head being from outside of the financial sector. However, you don't need to have worked on the floor of the stock exchange to understand crypto prices.
Cryptocurrency Market Challenges & Solutions
Posted in Crypto Trading on Apr 08, 2018There are various reasons why cryptocurrencies have grabbed the world's attention and grown in popularity over the past few years.
What is Cryptocurrency Trading?
Posted in Crypto Trading on Apr 15, 2018Before we discuss trading, let's clarify the true nature of exactly what a crypto really is.