Hello!
where do you trade your cryptocurrencies? do you have any tips for a beginner on how to start?
BITCOIN TRADING SITES, PLATFORMS & EXCHANGES
This page will show you different Bitcoin trading platforms you can use.
The availability of each exchange will differ based on your citizenship.
We have listed the exchanges below from highest to lowest daily volume based on 2017 data (
https://coinmarketcap.com/currencies/bitcoin/#markets).
- Bitfinex (
https://www.buybitcoinworldwide.com/trading/bitfinex/)
Despite a hack in which users lost 33% of their funds on the exchange, Bitfinex remains a popular option.
Its liquidity is only topped by Poloniex, which makes Bitfinex the largest Bitcoin exchange in terms of USD trading volume.
- Poloniex (
https://poloniex.com/)
Here’s what’s funny:
Poloniex has the largest Bitcoin trading volume, but its markets are not even denominated in USD or any other major currency.
Its DASH and Ether markets make up about 20% of Bitcoin’s daily trading volume.
- GDAX (
https://www.coinbase.com/home)
GDAX holds about a 4% share of total BTC trading volume. 80% of its share comes from its BTC/USD exchange, with the rest coming via its ETH/BTC exchange.
- Gemini (
https://gemini.com/)
Gemini accounts for just about 1% of total Bitcoin trading volume. It’s still rather new, so with time it may gain market share.
It has some very unique features, like instant-Bitcoin and instant-wire deposits.
- Kraken (
https://www.kraken.com/)
Between its EUR/BTC and USD/BTC markets, Kraken has about a 7% share of the total Bitcoin trading market.
About 50% of Kraken’s market share comes from its EUR/BTC exchange, 30% from its Ether/BTC exchange, and the last 20% from its USD/BTC exchange.
- Bitstamp (
https://www.bitstamp.net/)
Bitstamp’s BTC/USD exchange accounts for about 2.5% of global Bitcoin trading volume.
Its BTC/EUR exchange tacks on anohter 0.5% of global volume, giving Bitstamp a ~3% share of global Bitcoin trading volume.
***TRADING TIPS
Hang around traders online or in-person and you’ll soon discover countless, sometimes contradictory, rules of thumb:
Buy low and sell high advocates buying when prices are low and selling when prices are high. Obvious enough, although difficulty arises due to the utter subjectivity of the terms “low” and “high.” Whether the current price represents value can only be assessed within the context of historical levels and expected future performance. This maxim may also be expressed as buy fear, sell greed.
Sell high and buy low, the reverse of the above, is applicable when going short.
For every buyer, there’s a seller expresses the simple truth that there are two sides to every trade. Generally speaking, trades occur because sellers consider the price high and buyers consider it low. Sustained price moves result from either buyers or sellers being more aggressive in crossing the spread. In other words, whichever side is collectively more willing to pay the difference between bid and ask prices in order to initiate a trade, will move price in their desired direction. This can also be expressed as a market being bullish or bearish.
***GET STARTED TRADING CRYPTOCURRENCY
Now that you know how market trading works, you’ve decided on the type of trader you want to be, you know what you should look out for and you have studied the theory, you’re ready to start trading cryptocurrency. Let’s take a look at everything you’ll need to get started.
- Step 1. Find a broker
A broker that provides an online platform for trading cryptocurrencies is a necessity. While many traders use cryptocurrency exchanges to market trade cryptocurrencies, these exchanges were not built with trading in mind and usually involve high fees.
- Step 2. Learn the platform
Cryptocurrency brokers usually offer their own trading platform, and each broker’s system will be slightly different from one another. You will need to put in the time to learn how the platform works, where each feature is and how to utilize it.
When you first access a broker’s trading platform, you might feel overwhelmed. This is normal. Spend some time with it and continue doing your research. You will get comfortable with it in no time.
- Step 3. Is it the right time?
The old adage of “buy low, sell high” holds for cryptocurrencies just as it holds for any other sort of investment or trading. Don’t buy cryptocurrencies when the price is at an all-time high, and don’t sell them when they’re at an all-time low. Cryptocurrency markets move up and down, and large movements up are often followed by sudden dips.
- Step 4. Get in there
The best way to learn how to trade is to actually trade. There is no secret. Once you’ve learned all the theory, you’ll need to get your feet wet. Buy some cryptocurrency, set your limits and get started.
*** WHAT AFFECTS THE PRICE OF A CRYPTOCURRENCY?
Cryptocurrencies are volatile by nature. They are not as stable as currencies that have had centuries to develop. Bitcoin is the oldest coin on the market, and it has only been around since 2009. Nevertheless, there are a number of things that can affect cryptocurrencies:
Regulation. If a government makes a statement or pushes for a particular regulation that affects cryptocurrencies, you can bet that the price will react to it (sometimes positively, often negatively). When China banned ICOs, the price of Ethereum fell by 41% in 15 days (from$386.83/ETH to $228.06).
Media influence. Just like government regulation, exposure in the media greatly affects a cryptocurrency’s price. Whenever a public figure makes a statement regarding cryptocurrencies or a major retailer starts accepting cryptocurrency as a form of payment, you will see the market respond.
Changes to the technology. When a cryptocurrency’s core technology is affected (either via an update or the finding of a flaw), the cryptocurrency’s price is also affected.
***IN CONCLUSION
Trading cryptocurrencies works almost exactly the same as trading fiat currencies, and it will benefit you greatly to learn the theory behind trading currencies. While profits are never guaranteed when trading, you can take steps to protect yourself from heavy losses and to improve your understanding of how markets move.
Cryptocurrency trading can be profitable, but only if you play your cards right. Unfortunately, cramming everything you’ll need to know about trading into this beginner’s guide is impossible, but hopefully you now know enough to get you started on this exciting adventure.
Good luck!
