Many of the world’s most popular brands accept them as a payment method, and governments are becoming more lenient. Nations such as the USA, Canada, as well as members of the EU allow their residents to trade crypto, whereas El Salvador has become the first country to recognize them fully after it legalized Bitcoin. 

These points lead us to believe that they might have a bright future; hence it is worth getting familiar with them. With that thought in mind, we decided to name a few things that you should know about. Without any further ado, let’s dive into the details.

Where Can You Trade Them?

Some cryptocurrencies may have specially designated trading platforms. For example, Bitcoin can be traded at Bitcoin ATMs. Ether can be traded on its own decentralized network – Ethereum. But, all of these cryptocurrencies also have one general platform, which goes by the name trading sites. 

Trading sites support hundreds of cryptocurrencies, and they allow you to connect with other traders from around the world. Not only that, but they are easy to use, and the process of registration there is very fast and simple. You just fill out an online application form and verify your account. 

And if that is not enough, some trading sites, such as the Quantum AI app, even use advanced AI systems that are able to track the latest developments on the market and, with that, provide you with predictions on the future price of your chosen cryptocurrency. 

The First Cryptocurrency Ever Invented 

The first cryptocurrency to be invented was Bitcoin. Bitcoin was created by none other than Satoshi Nakamoto, a person or a group whose identity remains a mystery to this day. In its inception years, Bitcoin was mostly used on Silk Road, which is a black market. 

But, after it caught the eye of the global public thanks to the fact that it was superior to regular payment methods, it quickly started to rise and gain popularity. Not only that, but it sparked a revolution in which numerous other individuals and companies invented cryptocurrencies of their own. 

That is why we got the likes of Ethereum, Tether, Dogecoin, Litecoin, and Ripple these days. Research states that there are around 2,000 cryptocurrencies. As for Bitcoin, it continues to break barriers as it is the most valuable cryptocurrency on the market. 2021 is set to be historical for Bitcoin because experts believe that it has the potential to reach $100,000 by the end of the year. 

Difference Between Stablecoins and Highly Volatile Cryptocurrencies

There are two types of cryptocurrencies. The likes of Bitcoin and Ethereum belong in the so-called highly volatile cryptocurrencies. They are used for making a profit due to the fact that their value fluctuates often, and it can rise in a short period. 

On the other hand, stablecoins are not subject to the volatility rate because they are tied to an outside asset. In doing so, they remain stable for a long period and are the perfect cryptocurrency for trading and paying for services. The two most popular stablecoins on the market are Tether and USD Coin. 

The Advantages That They Boast

Since we mentioned that they are superior to regular payment methods, it is worth sharing the advantages that they boast. Cryptocurrencies provide users with a certain level of online anonymity, thus, are more secure. They also offer instant online transactions, users void unnecessary fees, and of course, they can make a profit with them.

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The best part is that all of these currencies can be traded in financial technology markets on various professional platforms. Since the cryptocurrency market is tremendously volatile, the profit margins are quite exciting. In this section, we will look at some of the best bitcoin trading strategies.

Understanding a cryptocurrency trading strategy

If you’ve done any business before, then you know it all starts with having a plan and executing it. Cryptocurrency is just like the money you use to purchase items in your daily undertakings. The only difference is that this is a digital currency. Digital currencies also don’t have a central bank. What makes these currencies more profitable is the fact that they are more volatile. You can buy a certain currency, hold it for some time, and then sell it at a profit.

That said, a crypto trading strategy is a well-laid plan that guides trading activities. The ultimate objective of the strategy is to ensure that you earning a profit. It guides you from the point of investment to the point of profitability. Should anything happen in between, your strategy has a response plan.

Day Trading

Day trading is one of the most prominent trading strategies. So, what does it entail? Day trading entails entering various trading positions at a certain time and exiting them at the same time. If you are going to focus on this strategy, your focus should be the intraday price fluctuations. These are price moves that take place within your chosen day. The bottom line is that you will enter the market when it opens and exit when it closes. You are not going to trade throughout the night.

You need to understand that most cryptocurrency platforms are active throughout the year, 24 hours a day. Monitoring the markets day and night can be a daunting task and you are likely to make some losses. This doesn’t mean that you cannot be successful if you prefer a longer-term trading session, but it is always to work with what makes you comfortable. For beginners, short-term trading will minimize your risks as you test the markets.

Swing Trading

Swing trading is another one of the crypto trading strategies that you could use. It is more of a long-term plan that allows you to earn profits in the long run. As a trader, you will need to hold on to a particular trading position for a longer time. Although it is more than a day, it is certainly not longer than a month. The objective is to cash in on the volatile waves. Sell when the currency you are trading hits a record high in terms of value. Fundamental analysis of the market is particularly critical in this crypto trading strategy. Moreover, it sometimes takes a long time for any significant changes in the market to manifest themselves.

Swing trading works incredibly for beginners, you get a longer time to analyze the markets and learn the trade before you make your move. You can keep an eye on the movement of the market without any pressure, and only act when it is necessary.

Trend Trading

Trend trading is also popularly known as position trading. The trader takes a particular position and holds it for a while. This could be for two months or more. Since this is more of a directional trend strategy, you take a short position where a downtrend is involved, and a long term position on an uptrend position. Trend traders also use fundamental analysis to make decisions. When you take your position, you assume that the variables will keep moving in a certain direction. If that doesn’t happen, then you are likely to make losses.

Scalping

In the crypto markets, you can expect small moves or big moves. Scalping is a strategy that doesn’t rely on significant movements. It is considered one of the quickest and best trading moves in the market. It mainly works on exploiting small moves. Most traders who use this method do not maintain their trading positions for a long time. They work by closing and opening positions over time. This can even be in a matter of seconds. Scalping as a method of trading can be an efficient trading method when a trader comes across a marketing inefficiency.

The right cryptocurrency plan can earn you high profit margins while the wrong strategy can lead to huge losses. Choosing the right trading strategy is key. You need to choose the strategy that works best for you and leverage it for profit. Not all traders can be master scalpters and not all traders can be good at trend trading, you therefore have to find a strategy that works best for you. 

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