Crypto Trading View: Risks & Advantages
Cryptocurrencies were designed to be just what they claim; crypto trading view - CURRENCIES, not investments. However, the very nature of the coins themselves demands a rise in price over time through the very nature of the law of SUPPLY AND DEMAND.
Buy Low and Sell High
The more people who use specific crypto versus the number of coins in circulation forces a rise in prices. Of course, other external events and 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, humanity has become adept at making wagers to such fluctuations in value. Stocks, bonds, and other investment opportunities have bred a group of individuals and companies who make a living from such wagers. And, regardless of the crypto creators' intent, those individuals have done the same with these currencies. So, now we have a crypto market. If you are willing to bet your funds on this market, it is 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 buy 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 various crypto projects and companies around the world. So, ETH can be used to buy and sell those tokens, each of which holds its value depending on the project, company, team, software, and idea back it.
While there are big crypto exchanges (like Coinbase) where a trader can sign up, verify their identity, and place their money into a platform 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.
Cryptocurrency Trading Platforms
Learn direct trades through platforms like LocalBitcoins and LocalEthereum where traders can place, or answer, ads for trades. A user 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). This platform has the best customer service and protection from scammers from their excellent admin's staff. However, the user must still be on guard.
Instant Cryptocurrency Exchanges
This transfer and exchange manner 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; is a few dollars worth more to you than jumping through hoops, waiting days/weeks on end, or worrying about scammers?
We prefer to pay a couple of dollars extra for the instant exchange over those other issues in our opinion and our experience. Regardless of your chosen trading method, 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. Instantly put your funds back in your own personal, private, secure wallet to maintain control over your money.
Good luck with your trades and Happy HODLing!!!