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In the context that we are trying to explain today, which is the financial market, these assets you see being traded can be anything from bonds and stocks to cryptocurrency, margin products, and many more. It might be a bit overwhelming at first to hear these terms for the first time, but don’t worry; we’re here to explain everything you need to know before diving into the exciting world of investing or trading in cryptocurrency. Investing in Cryptocurrency In the same way that the traditional banking system provides a choice of alternatives for investing your money, such as stocks, bonds, and mutual funds, the world of cryptocurrency also provides a multitude of investment options. Crypto holders can invest in cryptocurrency by purchasing tokens and depositing them on a cryptocurrency exchange. Once the assets have been deposited, you can explore your options with trading, staking, receiving a fixed deposit rate, or earning a savings rate. Each investment opportunity entails a certain level of risk and return. Some, such as staking, necessitate a more in-depth understanding of decentralized finance than others. To know more about What Is Staking In Crypto, And How Can It Benefit You? Make sure to give the article a read. To start, let’s explore what crypto trading is. What is Crypto Trading? Just with any traditional trading venture, your end goal in crypto trading is the same; to generate a potential profit or obtain additional market exposure from buying a stock at its lower price and then selling high. So the concept with trading, in general, is to buy low and sell high, and the same goes for crypto trading; however, the volatility of the market makes it tricky for the average trader, so knowing the tips and strategies to the market is what will make the difference. The Cryptocurrency Market Before we dive into the hows, it’s essential to know how the cryptocurrency market works. Cryptocurrency markets are decentralized, which means that, unlike traditional currencies, they are neither issued nor endorsed by a centralized body such as a government. Instead, they exist throughout a computer network that can be purchased and sold on exchanges and held in 'wallets.' Cryptocurrencies exist only as a shared digital record of ownership maintained on a blockchain. When a person wishes earn crypto online and to send crypto units to another user, they do so through a digital wallet. The transaction is not considered final until it has been validated and uploaded to the blockchain via the mining process. This is also how most new cryptocurrency tokens are created. What Exactly is Blockchain? A blockchain is a publicly accessible digital registry of recorded data. This is the transaction history for each unit of cryptocurrency, which demonstrates how ownership has changed over time. Blockchain records transactions in 'blocks,' with new blocks added to the front of the chain. Blockchain technology provides unique security features that traditional computer files do not. Blockchain files are secure technologies, as they are permanently stored on numerous computers throughout a network – rather than in a single spot – and are typically readable by everyone on the network. This makes it both transparent and difficult to change, as there is no single weak point susceptible to hacking or human or program error. How to Start Trading Cryptocurrency Here are the steps to take to begin trading cryptocurrency. 1. Create a Crypto Exchange account If you don't already have cryptocurrencies, you'll need to open an account with a cryptocurrency exchange. You must supply your crypto brokerage with personal identifying information to open an account, just like you would with a stock brokerage. 2. Fund your account After you've registered with a cryptocurrency brokerage, you'll need to link your bank account. Different exchanges will provide additional choices; however the majority of crypto brokerages accept bank payment via debit cards and wire transfers. Wire transfers are often the most cost-effective way to fund your account. 3. Pick a token to trade Choosing the proper crypto to invest in can be difficult, but it plays an essential role in your profits. The majority of active cryptocurrency traders put most of their funds into Bitcoin and Ethereum. These cryptocurrencies move more reliably than smaller altcoins, making trading with technical indicators easier and more suitable for traders seeking reduced risks. Other cryptocurrency traders invest a portion of their wealth in smaller cryptocurrencies. Although small and mid-cap cryptos are riskier than large-cap cryptos, they have more significant upside potential. In addition, many small altcoins have grown more than 1,000% in a couple of months, making them appealing options for risk-averse investors. 4. Choose a trading strategy There are numerous ways to trade cryptocurrency. The list is lengthy, and each technique has its own set of risks and rewards. Begin by determining the amount of time you're willing to commit to your investments and work your way down from there. Once you've decided on a plan, you may start trading using the capabilities of your crypto exchange. Let's take a look at some of the most popular strategies among traders. Day Trading This trading process includes traders entering and leaving positions on the same day. A trader's goal in engaging in such a trade is to profit from intraday price swings in a cryptocurrency of their choice. For a successful transaction, investors frequently rely on technical indicators to determine entry and exit points for specific crypto. Range Trading Range trading is similar to day trading in that market trends are also used to forecast the future of cryptocurrency values. The primary distinction is that range trading might be restricted to an hour or last a month. Essentially, range trading extends on the concept of day trading by increasing the time frame. Of course, this raises the risk of the process, but it also boosts profitability significantly. Scalping This trading method entails increasing trading volumes in order to profit. Despite the risk, a wise trader observes the margin requirement and other crucial guidelines to avoid negative trading experiences. Scalpers examine the crypto asset, past patterns, and volumes before deciding on an entrance and exit position within a day. Arbitrage Arbitrage is a trading method in which a trader buys cryptocurrency in one market and sells it in another. The ‘spread’ is the difference between the buy and sell prices. Traders may be able to book profit due to the differential in liquidity and trading volume. To take advantage of this opportunity, you must register accounts on exchanges where the values for the cryptocurrency you are trading at differ significantly. 5. Store your cryptocurrency If you're actively trading crypto, you'll need to keep your funds on the exchange in order to access them. If you intend to keep your cryptocurrency for the medium to long term, you might want to purchase a cryptocurrency wallet. Benefits of Trading Cryptocurrency No time constraints Trading cryptocurrency, unlike trading equities, is available all year and may be done at any time of day or night. The biggest advantage is that trades do not have to idle overnight. Instead, you can take advantage of the best opportunity when it becomes available, whether it is midday or three a.m. Volatility of cryptocurrencies Although the cryptocurrency market is still in its infancy, it has seen substantial volatility as a result of massive short-term speculative interest. Cryptocurrency volatility is part of what makes this market so intriguing. Rapid intraday price changes can present traders with a variety of opportunities to go long and short, but they also come with heightened risk. In this situation, volatility is a double-edged crypto sword. It can be beneficial to a trader, but it can also be harmful. So, if you decide to venture into the cryptocurrency market, make sure you have done your homework and built a risk management strategy. Trading Vs. Investing Profits in the financial markets are sought after by both traders and investors. Their approaches to achieving this goal, on the other hand, are entirely different. In general, investors want to create a return over a more extended time, such as years or even decades. Because investors have a longer time scope, their expected returns on each investment are typically higher. Traders, on the other hand, attempt to profit from market instability. They join and exit positions more frequently, and they may seek lower returns on each trade (since they constantly enter several transactions). Start to research each of these options to see which one suits you and your funds best. Understand When to Take a Step Back You will eventually misread the market when looking for bottoms or cryptocurrency seasons. Every trader makes mistakes from time to time, and there is no need to compensate by instantly increasing the bet size to make up for the losses. That is precisely the opposite of what you should do. When you don’t get the desired results, take a couple of days off. The psychological impact of losses is substantial and will impair your ability to think properly. Even if an obvious chance presents itself, pass it up and try to look at the bigger picture. As the saying goes, true traders are not the most gifted but rather those who have survived the longest. This is a contributed post.

While it’s true that every stock market dip is followed by recovery and significant growth, for investors, the period of downtime is like living in hell. It's highly stressful and challenging to navigate through such events even for experienced crypto traders and investors alike. Interestingly, many experts believe that every time the crypto market witnesses a volatile upward movement, they should be prepared for a downward movement. Investing in the crypto market can take you for a wild ride, and you must be prepared to deal with every adversity you face. In this article, we discuss how you can prepare for the cryptocurrency downturn and price decrease. Follow these steps religiously to prepare yourself every time bitcoin or Ethereum plunges. Know your investment reason One of the greatest threats to crypto buyers is dumping their savings into the crypto market without knowing it. Just because your next-door neighbor got rich doesn’t mean you can become a millionaire by investing in the crypto market. Before you buy bitcoin with a credit card, ask yourself why you buy one. Knowing what motivates you to make a bitcoin investment can help you make intelligent investment decisions. However, before investing in a volatile market like crypto, understand that it moves differently from the stock market. So, always be ready to educate yourself and understand investment basics. Many crypto market consultants believe that the buyer’s crypto holding should be less than 5% of their complete portfolio. It’s the leading way to resolve any losses you might witness due to cryptocurrency volatility. Hold the cryptocurrency for a long time. While many buyers believe that you don’t incur a loss until you sell your cryptocurrency, it’s incredibly challenging to live the loss. You incur an unrealized loss if your cryptocurrency values have dipped since you first purchased them. You can realize the loss only when you sell them at a price lower than your buying price. But what’s the point of holding a cryptocurrency for a long time? Since its inception, cryptocurrency prices have gone up and the crypto market witnesses temporary downfall due to longer bear markets or economic deliveries like scarcity. Source The limited cryptocurrency continues to rise over time. A negative price moment is temporary, and you can easily offset the loss due to price movement. Additionally, in many countries, holding cryptocurrency for a long time can offer benefits in terms of taxation. Have a mindset to bear losses You’ve heard that cryptocurrency is a volatile market, and it’s essential to have a risk-taking appetite. One of the safest options to provide volatility and protect cryptocurrency is converting some of your crypto holdings to stable assets. This prevents offsetting the loss incurred due to market volatility. Investors who can actively manage their portfolio in the cryptocurrency bull market face significantly fewer losses. Source Also, many investors have a mindset of selling cryptocurrency at once. While capitalization has significant short-term advantages, buyers can face losses if the market rebounds. That’s why analysts and crypto consultants stress knowing what level of profit and loss a buyer can bear. It helps you make intelligent and informed decisions under pressure. Knowing the right time to enter and exit is the key to overcoming potential losses. Invest in cryptocurrency stocks rather than tokens For beginners who are at the learning stage, consider investing in safer options like cryptocurrency stocks. A cryptocurrency stock is any company somehow related to the crypto sector. Generally, if the market widely accepts cryptocurrency, these stocks will indirectly benefit. These stocks are an excellent long-term investment strategy even if the market goes down. Before making a significant investment in cryptocurrency, buyers need to research buying stable and long-term stocks. Invest a small amount in known cryptocurrency While it might be tempting to put all your savings in a newly launched cryptocurrency, it could be a disaster if the new currency fails to make a cut. So, a much safer and wiser option is investing in a small amount of renowned cryptocurrencies that are more likely to grow over time. Though this process is risky, it can significantly reduce your risk when the market or prices fall unexpectedly. Irrespective of whether you invest in bitcoin or Ethereum, remember that there is no guarantee of success. So, focus on investing money you can afford to lose and ensure a strong portfolio. This prevents you from facing short-term volatility. Harness the power of volatility As the asset class leads to heightened volatility, investors can harness this power to make investment decisions. While large price movements are risky, daily volatility is exceptionally healthy for crypto market. For smart traders, crypto market volatility is good. It’s essential to understand the type of trader you are to manage the price swings. By following news about blockchain and cryptocurrency and their historical charts, you can quickly identify emerging patterns. Avoid falling into the trap of FOMO While staying on the top of the cryptocurrency space is critical, having too much information can be disastrous. This is especially true in market downturns, where it’s all too easy to fall into the trap of these miscommunications and make the wrong investment decisions. Falling prey to the fear of missing out (FOMO) can significantly impact your buying behavior. Often, buyers fall for uncertainty, and doubt (FUD). This is a market sentiment caused by rumors, unfavorable market conditions, and experts undermining the performance of certain assets. In such scenarios, investors are forced to sell their assets because they expect a sharp decline. So, to protect yourself from a cryptocurrency downturn, whatever information you gather, cross-check it from multiple sources before buying or selling a cryptocurrency. Diversify your portfolio Placing all your eggs in one basket is not an advisable strategy. One of the best ways to diversify your portfolio is by minimizing your risk in crypto investing. Focus on investing in a variety of coins and crypto projects. You can focus on options such as the internet of things, Defi projects and non fungible tokens, and other coin types. Source You can even diversify cryptocurrency exchanges because not every exchange has the same asset. When you diversify your portfolio, it reduces your overall risk and ensures you don’t lose excessive money. Invest what you can afford to lose One of the best ways to prepare for crypto downturns is investing only that amount you can afford to lose. As quickly as the prices go down, they can tumble back down. For anyone apprehensive and nervous about a potential drop in cryptocurrency, you should not invest more than you can afford to lose. Cryptocurrencies are highly volatile, and this asset movement is likely to happen pretty often. If you’re going to faint every time a cryptocurrency touches its low, it’s advisable to invest in stocks and bonds or look for other safer investment opportunities. Consider dollar-cost averaging If you’ve decided to stay in the crypto game for a long time, apply the cost-average strategy. Focus on dollar-cost averaging if you’re making consistent investments over time rather than investing a lump sum amount. When you consider dollar-cost averaging, you avoid trying to time the market, which studies have shown in an unlikely way to earn profit from cryptocurrencies. This approach can help investors bear the risk when the market shows unprecedented swings. The main idea behind this strategy is that you can cover your losses due to volatility by building wealth over time. Give preference to the liquidity of a cryptocurrency Another crucial factor that can prepare you for crypto downturns is liquidity. As the crypto market moves extremely fast, crypto traders move in and out. This implies that when there is demand in the market, crypto traders can buy at the best price and sell some of their holdings to secure a profit. What’s the point in buying a crypto asset that’s not being traded, or its growth has stagnated overtime. When such a scenario happens, you’re at the mercy of the market. So, before investing, look at the recent trading volume of a crypto asset. Key takeovers While no asset is entirely recession or market volatility proof, cryptocurrencies like bitcoin can survive economic changes and come back stronger. For traders to reap maximum benefits, preparing for crypto downturns and price decreases can help you earn profits. By following one or all of these methods, you can negate the market volatility to a great extent and ensure you don’t end up losing your hard-earned money to a wrong investment decision. Author’s bio Priya Jain is a professional copywriter with 8 years of experience. She has an MBA and engineering degree. When she is not writing, you will find her teaching math, spending her day running behind her toddler, and trying new recipes. You can follow her on LinkedIn. <

Outwardly, banks claim public interest is threatened, and crypto advocates money laundering. Hopefully, HSBC didn't comment on this sentiment. Despite the arguments over whether crypto is a good substitute for an established banking system or facilitates criminal activity, the fact remains that the paradigm is constantly gaining ground. While Bitcoin and Etehrum are well-known digital currencies, there are over 4,000 alternatives in use. And you can use them in various ways. Pay for Goods and Services The most apparent use of digital currency is to pay for goods and services. While crypto isn't widely accepted yet, acceptance is on the increase. More than 15,000 global businesses worldwide now accept BitCoin. Receptors include software giant Microsoft, telecoms pioneers AT&T and the international auction house Sotheby's. But smaller companies are also willing to take alternative crypto as long as they can facilitate transactions. Australian cryptocurrency Qoin (learn more about the digital currency Qoin on LinkedIn) is widely accepted across the nation and New Zealand. With many small vendors such as Chinese restaurants embracing their local crypto. Additionally, charities in the region are also willing to accept digital currencies as a form of donation. However, always ensure that you get a receipt for any transactions completed using your chase payment method. Investment Opportunities Of course, one of the more prominent uses of digital currencies like Bitcoin is an investment. Securities, futures, commodities and currencies can be invested using cryptocurrency. Crypto is accepted by some of the world's largest trading platforms, such as eToro and Binance. You can add funds to your account with a form of crypto as you would another, which can then be used for your financial transactions on trades. However, as with any transaction, you must take care to enter the correct details, or the system could lose your money. Additionally, the currency itself can be seen as an investment. The meteoric rise of Bitcoin is a perfect example. In January 2009, it was possible to purchase 10,000 BTC for $50. At the time of writing, 1 BTC is now worth $38,000. This makes BitCoin an exceptional investment. Erik Fineman invested $1,000 in BTC when he was 12, and by the time he was 21, his BTC holdings were worth almost $5 million. Compound Your Bank Account The traditional use of crypto is for developing a portfolio and investing, expanding, and diversifying using your digital currency. This is kept separate from your bank account. However, you can obtain cryptocurrency debit cards and credit cards. For example, Visa is one of the most widely used card issuers in the world. The company issues payment cards backed by your crypto holdings. So, essentially, wherever a Visa is accepted, which is virtually everywhere in the physical and online world, you can use your crypto Visa as payment. Additionally, there are various other card issuers with different methods of paying with digital currency. For example, CoinsBank can be used for payments that automatically convert your crypto payment into the relevant currency, such as GBP or USD. There are also various prepayment cards onto which you can load crypto in specified amounts. These include Cryptopay and Bitpay, while Satoshi Tongo allows you to transfer crypto to your bank-issued debit card account This is a contributed post.

Due to the world becoming more computerized and digital platforms being everywhere, the world has evolved into trading online – and it couldn’t be more convenient for people looking to profit. If you’re interested and feel as though you need to get involved before you miss out on something big, then there are a lot of different avenues to go down. Everyone starts off with little knowledge and nobody is an expert, to begin with, so you should never worry about being a complete newbie. One thing that should be stated, however, is that you must do a little thinking and prepare yourself before entering this world. While it’s fun when things are going your way, they’ll only go your way if you know what you’re doing. We’re in an era of video games and similar kinds of simulations, so it’s easy to get caught up in the world and to feel as though you’re gambling in a big game. Lots of people struggle with this kind of world and don’t really ever recover. Fortunately, there are lots of things you can do to prepare for the world of online trading, so there’s no real need to find it all so daunting. If you keep yourself disciplined and read up on a few things, then you should be good to go after a little while. Here are some of the things you could do: Research Every Aspect Of The Trading World Like most things in life, you need to know what you’re heading into. You cannot conquer any world without knowing a thing or two. No novice ever makes their way to the top. You need to gain experience. But before you become experienced, you need to understand the fundamentals. Do your research into every single area of trading because you really don’t want to get stuck at any point. You need to understand also that you could fail and put yourself into a perilous position should you make any wrong moves. Ensure you know what you’re entering before you even both commit fully. Make Sure You’re All Set Up Personally This means making sure that you’ve gotten everything under control with regard to your personal finances and your current working situation. You need to have a solid foundation before you commit to something like this. Also, be sure to take care of your home situation so that nothing can get in the way of what you’re trying to do. Don’t enter something new because you feel as though it can be another olive branch that can save you from where you currently are. You need to be in a positive place, to begin with, not in a terrible space hoping to strike it lucky. Ensure Your Account Is Set Up Correctly And Securely Something that is awkward regarding any work done online is that it can be breached pretty efficiently by hackers and criminals looking to cause problems. When you set up an account, be sure to have everything backed up. Also, be sure to possess a strong password that you’ll be able to remember (or have written down somewhere). Security is paramount in this particular field, so keep yourself aware of potential dangers. Find The Right Platform To Work On Due to the popularity of trading, lots of different individuals and groups have created platforms for people to work with. You’ll obviously want to pick the one that suits you the best in every way. The interface, the theme, the design, the navigation, and so many other aspects should hit the spot for you. You’ll also want something that has a good reputation and works well – it could be detrimental to your profits if not. The likes of bittrade.one could be something that you use if you’re new and are looking for something to play around with at first. You need to be comfortable while you work as your mind could be affected while surfing the wrong platform. You could make all kinds of wrong decisions in that case. Practice Everything Firstly The good thing about the world of investing and trading is that you can actually practice beforehand in order to get a feel of everything. This isn’t new, so it’s not exactly ground-breaking, but it’s still a fantastic method of learning. There are all kinds of different simulators available if ever you feel the need to practice a little more. You’re not going to know that much about it as a novice (as we mentioned at the start) and just reading up on theory will not teach you. Practical experience and knowledge will help a lot, and a simulator will work wonders. This is a contributed post.