The domain of cryptocurrency or virtual currency is a labyrinth of technical terms and difficult-to-understand jargon. So, what is cryptocurrency? Cryptocurrency is an elusive, intangible mode of trading in the form of computer-generated tokens or coins. It exists on a distributed record in cyberspace.
Virtual currency trading claims to be free of government intervention and bypasses third-party presence during transactions.
STYLES OF CRYPTOCURRENCY TRADING
Buying digital coin can be a tricky business. Markets offer a wide variety of trading options that cater to buyers’ style, confidence, and threshold to stress. Those in the know, suggest that prospective punters choose their investment according to capitalization, user base and popularity. Performance (wins and losses), and security of investment, should also be considered.
Scalping refers to transacting where traders make quick, regular dealings with the aim of spot-buying and building a good position with the goal of taking profit. This method needs good focus and good luck in equal measure but promises to make decent money.
Day trading refers to completed transactions made over the course of a twenty-four-hour period. Dealers aim for a higher profit margin but tend to scale in and out of sought-after positions continuously. Margins and stop losses are calculated and maintained to manage acceptable risk.
This trading style is similar to day trading, although buyers and sellers hold trading positions for longer to improve profit margins.
When using range trading, crypto dealers transact within a range set by the particular currency platform. In most financial records, there are obvious, often predictable price fluctuations. Range trading uses these to play the market.
In order to practice swing trading, merchants have to analyze market patterns and variations in order to identify trends. This is a longer-term investment, where the trader tries to detect the bottom of the fluctuation and attempts to catch a ride to the top.
Trading in cyber cash is essentially entering the fray at the correct moment to establish a profitable position. Position trading functions on this principle. Dealers follow the swing concept over a much longer period of time.
Although this style is said to be a good option for beginners, it is still risky, as unpredictable markets change at the drop of a hat, and at any time of the day or night.
Investing requires that a trader establishes a long-term position in an asset or asset class. As one of the better options for newbies, it adopts less risk and more peace of mind.
PICKING A TRADING STYLE
To pick a trading style that matches your confidence and risk management capability, may be a daunting task. Experts advise that beginners pick a style and stick to it for a reasonable time period. Don’t jump between styles if the going gets rough. Gain experience and learn how to refine and master the craft.
Practice self-awareness to gauge your ability and skill at trading currency. Keep emotions and your flight-response from overwhelming logic and knowledge when faced with difficult trade decisions.
CRYPTO AVAILABLE ON THE MARKET
Bitcoin is the pioneer of online coin trading. It accounts for the large majority of all trading in e-currency at present. It boasts excellent online security in the form of Blockchain technology, making it hugely popular with its user base.
However, there are many alternative cryptocurrency services (altcoins) available for investment consideration. Read this article for more information on the types of crypto available on the market.
Ethereum initiated the practice of ICO in 2014 and is hugely popular with users. It is a dispersed software platform that enables Smart Contracts, where all terms and conditions of transactions are embedded in the lines of code. Decentralized Applications ensure less interruption, negligible fraudulent activity and a guaranteed lack of third-party meddling.
The technology allows users access to financial products and services – regardless of state infrastructure or other limitations.
Litecoin is regarded as ‘the silver to Bitcoin’s gold’. Litecoin’s main appeal lies in speedier transaction confirmation times and easy attainment on a wholly decentralized, universal network.
The PKT Crypto platform uses blockchain technology based on Bitcoin code and is designed to decentralize internet access around the world by enabling anyone to become an ISP. It uses an algorithm called PacketCrypt, which is the world’s first bandwidth-hard proof of work. PKT coins called PKT Cash provide an economic incentive for people to connect bandwidth to the PKT network. There will be 6 billion total coins issued over a period of 63 years.
Currently, you can trade PKT Cash through its dedicated PKT trading group. It is still relatively new and yet to be listed in an exchange. Like any other cryptocurrencies, a crypto wallet is necessary in storing, buying, and selling PKT Cash.
Cardano and Polkadot
Cardano and Polkadot both use Blockchain technology to enable solutions for chain interoperability (the ability of computer systems to exchange and share data). The creators of these systems were both disillusioned Ethereum employees who decided to strike out on their own.
Cardano aims to extend the idea by including solutions to voter fraud and legal contact tracing.
Other types of cryptocurrency
Bitcoin Cash was one of the earliest, successful spin-offs of Bitcoin. Their Blockchain modifications allow for changes to be made to network protocols. Stellar connects financial institutions for the purpose of large transactions. The Stellar program allows for instantaneous, affordable, cross-border transactions between different currencies.
Some virtual currencies, such as Tether, are linked to a specific currency or point of reference, to stabilize trends to an extent. It is important to remember that not all crypto trade is traceable or above board. Punters should educate themselves and avoid the pitfalls of the industry as best as they can.