Handy Cryptocurrency Tips

Handy Cryptocurrency Tips

Investment is the new buzzword for 2019, as people are looking for new and exciting ways to make money and build a career for themselves, and a nine to five job just doesn’t seem so appealing anymore. If you are looking for some ways to invest your money this year and make a good income, one avenue you can try is cryptocurrency. Cryptocurrency is a type of digital currency which can be used to buy and sell things all over the world. The most famous example of this is BitCoin and today we are going to look at some ways you can invest in this market today.

Use an exchange

When it comes to trading currency on the foreign exchange market, there are several ways you can go about this. You can either trade with a broker or you can trade on an exchange. When trading currency it can be better for you to trade via an exchange because it will be less expensive as you will avoid any fees from brokers. Also make sure to use a blockchain system along side this such as https://blockchain.intellectsoft.net/blog/public-vs-private-blockchain/ to help you keep a real record of your trades and keep you on track with your goals.

Use a stop loss

The way we trade can seem very complex to outside users however it is not too difficult to trade a currency on the forex market at all. When you come to buy or sell a currency you open up an order, this order will mean that you track the value change in real time until you make a profit or suffer a loss and want to close. To limit the loss you can receive from a trade you can create something call a stop loss order. This will be a number you choose which will automatically close your trade if you reach it. So if you traded at 1.4 and set a stop loss for 1.1, if the stock market gets to 1.1 your order will be retracted and this will negate the risk of you losing even more.

Short and long

There are several different ways that you can trade on the forex market and when it comes to crypto you will have the ability to short it or long it. When this means is that if you think the value of crypto will rise compared to the base currency, you can choose to buy the crypto and this is known as long. If you believe the the value is going to fall in the next few days or weeks you can choose to sell which is known as short.

Learn more about trading

If you want to be able to successfully trade cryptocurrency on the financial market you will need to think about learning more about it. Trading has a long history and a lot of complex philosophies which you need to get to grips with if you want to earn as much money from this as you can. Think about taking a course online or even consider sitting with a trader and asking them for some advice. There are some great facebook and LinkedIn groups for traders so this can be a good time for you to get some real advice from people who know what they are doing.

Take your time

The most important thing for you to bear in mind if you want to start trading on the market is that you shouldn’t put everything you have in there at once. Make sure that you take your time and work your way up slowly to build up confidence on the market before you trade the big bucks. There is a lot of psychology in trading and this can help you to gain a real insight on how the market works and how you can perform risk management on your trades.

There’s more than BitCoin

BitCoin is the most popular of the crypto currencies but it isn’t the only one out there. There are plenty of different cryptocurrencies which exist in the world and some of these could get you a better return than BitCoin can. Make sure to look at all of your options and you might be able to find something which can help you make more than the big boys.

Trading currency can be a great option for anyone this year so take a chance and see what you are made of, you might just surprise yourself!

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