Cryptocurrency is the digital and encrypted currency, based upon advanced blockchain technology. The transactions are very safe and secured from peer to peer. They refer these currencies as crypto, cryptocurrency, or crypto coin. There are many cryptocurrencies in the market, like Bitcoin, Unicoin, and Ethereum. Cryptocurrency trading is a process where traders try to take the opportunity of the price movement of the crypto coin through any legit exchange. It is similar to commodities or forex trading in modality. However, there are many differences while considering security and safety. Crypto trading is done using a spread betting or CFD trading account or buying and selling the underlying coins through a cryptocurrency exchange. There are 3 ways of cryptocurrency trading.
Fiat to Crypto Trading
You can buy the cryptocurrency by paying your fiat currency like American Dollar (USD), Great Britain Pound (GBP), and Canadian Dollar (CAD). There is a value for each crypto coins to fiat currency, and that keeps on fluctuating. So while buying, you need to put the exact amount of fiat against the cryptocurrency. This kind of trading is highly happening because traders feel comfortable to trade in their denomination.
Crypto to Crypto Trading
If you already have cryptocurrencies in your wallet, you can trade other cryptos by opening an account with any cryptocurrency exchange. Moreover, you can trade one crypto to another against the ongoing price. Trading crypto to crypto is popular among the crypto traders because they like to buy or sell bitcoin with an altcoin.
If someone has gifted or transferred digital coins to their wallet, traders hold it for future use. Such traders don’t trade any cryptocurrency intentionally but generally, store what they have in their wallet. They consider this as one of the expensive fancy gift as well as future currency. There are many kinds of wallets available in the market to store the cryptocurrencies.
Spread Betting and Margin Trading In Crypto
Spread betting and margin trading are a derivative form of trading. They are similar to forex trading when you chose to trade via any broker or exchange. These kinds of trading facilitate the user to speculate the price movement of cryptocurrencies for dual benefits. User can buy or sell the crypto without having ownership, and they need to pay small transaction cost with minimal margin in their trading account. A trader can buy if price speculation to rise up and similarly they can opt for short sell if the price is falling as well.
Crypto trading is considered to be the safest because cryptocurrencies are based upon the blockchain. Each block is linked together with a network called cryptography, which restricts any error or manipulation. In recent years, crypto trading is getting the edge. The number of investors is increasing tremendously. Many governments are also allowing and giving license for crypto trading. Hence it is also called as future currency, where the central bank renders no command. On account of this, the quality of trading is snowballing.