10 Simple Tips On How To Start Trading The Top 10 Cryptocurrencies
Bitcoin is considered to be one of the most valuable cryptocurrencies in the world, making it not only the best cryptocurrency that can make any kind of trading easier, but also one of many popular ones. Bitcoin is still very much unregulated because of its limited supply, but as time goes on many other cryptocurrencies will follow, for instance IOTA, BUSD or Lite coin. You might have heard of Bitcoins like BTC or LTC before the word is ‘Bitcoin’, but IOTA or Ethereum (ETH) are already established and highly valued in the crypto market. So, if you want to make quick money and make some new investments, here are ten simple tips to start your own cryptocurrency trading business now!
Bitcoin Trading Platforms
Bitcoin exchanges are usually used by people who are looking to buy and sell bitcoins, however there are several different platforms available in the industry. There are three main bitcoin exchange providers i.e, Gemini, Kraken and Gatecoin. Each of them has their own advantages and disadvantages and we shall consider the pros and cons of each on this list. Also Read – 8 Reasons Why You Cannot Trade On Coinbase
1. Most Popular Platforms:
The first platform that comes to mind if you want to start with a trading platform is Gemini (www.gemini.io). It allows users with up to 50 GB of bitcoin to trade with minimal deposits and charges. However, Gemini provides a better feature set compared to GDAX which is the older platform. As you see from the table below, Gemini is able to bring down our deposits by 40% compared to GDAX. Another advantage of Gemini is that they offer fast and secure payments and also give full access to their cloud storage with no monthly fees. Along with Gemini, Kraken is another important option that traders should consider to get started with it. Kraken offers a few types of features related to cryptocurrency. Some unique features offered by Kraken include; P2P transfer for instant transfers, multi-crypto trading, high deposit limit and low withdrawal limit. Also Read – 5 Ways to Earn Money With Your Bitcoin
2. High Commission Rates:
The transaction costs are quite high. Hence the commission rates of these platforms come at Rs. 20 as per 1000 transactions made. Though there are some good commission rates for Indian banks too, the higher commissions are mostly due to the fact that there are a lot of customers that do not understand the meaning of the word “banking”. Although the commissions are not fixed at all, yet it will go down the order for your profit. Still, the commissions for both Gemini and Kraken are a big deal that every trader should get into their wallets. Moreover, the interest rates for Gemini are around 4% whereas those on GDAX around 2%. But if you are looking for some high income, then choose between Gemini and GAEX!
All the aforementioned services provide free trades up to Rs.50 for 1 ETH; however, in reality, this service offers a little less than 1/3th of the price for those who get into their accounts after registering. That is why we recommend you to get registered through Gemini rather than using GAEX. Only through Gemini you can register new accounts, obtain a demo account and complete KYC. In addition to Gemini, there are others such as Bitmex, Bitshares & Bitshares Labs, Bittrex, Khaosu, Komodo, Kuaid, Naira, Neucoin Exchange, Coinbase Exchange and Exmo. For example: Exmo is a great website where you can search for specific products and can even submit proposals to get work done from home to work wherever you want. It will give your experience and knowledge, along with the ability to earn commissions, and eventually help you find the perfect product for your needs.
3. Minimal Deposits:
Depositing into Coinbase is not easy but if you look carefully at their terms, when you deposit, the minimum amount you need is 0.01 BTC which is relatively small. Since the maximum deposit you can make is $3,500, you can easily make a net profit of 500 BTC in 12 months. When you withdraw, there is a processing fee of 2.5% which you need at a minimum of Rs.100. If you want to withdraw the funds, you need to pay 3% fee, which will reduce your profits because you will lose Rs.500. Thus you need to invest wisely and carefully. This means that you need to know about the cryptocurrency, the market and the risks so that you can decide whether you need to take part in the market or not. Otherwise when you invest, you will be risking your money and losing profit in case of poor decision. Many investors end up in losses while choosing companies like Gemini and Coinbase. For instance, Gemini, a company that was founded in Canada has received a huge hype because of its user base and technology. At the same time, Coinbase is a US based company that was founded by two computer programmers, Steve King and Aaron Sorkin and later merged and launched in 2017. Both have been providing users with free cash transfers as well as paid subscriptions that could be made in any country in the world. Nowadays the two companies charge a total of 5 to 6 percent to facilitate the trading process. These companies have their own websites, and therefore if you want to buy and sell bitcoins, then you need to use either Gemini or Coinbase.
4. A Wide Range Of Options:
Some of the top coins in the cryptocurrency industry are Ripple and Tether, Zcash, Cardano and Stellar, EOS, Shiba, Polkadot Charts and DAG. All these coins, although having similar benefits, have their own drawbacks. You must determine what cryptocurrency to buy if you would like to start a successful trading business. The choice is clear, so choose wisely. In some cases, you may face difficulty and loss.
5. Low Fees And No Charges:
In cryptocurrency trading, you don’t need to worry about commissions and all. Instead, the fees are provided by the trading firms itself. They do it by charging a percentage of the trade volume. For Instance, the brokerage has an average fee of 2.2 percent to 3 percent for each trade and hence they tend to let you choose the fee rate you prefer. It is best to avoid paying fees or even buying with a lower fee and have some margin. Any fee charges should be kept in a separate wallet so as not to get caught up by the trading fees. One of the common ways of doing it is to create a private key for yourself and store it inside your bank account. It will allow you to trade between anywhere when you want to send the bitcoin. We recommend you to use a third party wallet software and save all the required details in it. This will allow you to instantly lock a password and allow access to your wallet without any hassle. The second method is to use an application that makes use of multiple blockchain services to make sure security. Here, you need to install the Bitcoin app on your phone to track your purchases and also receive automated alerts and notifications. This way you get the security of your wallet but at the same time it does not require high investment skills. The applications available are free.
6. Quick Payments:
Before going for trading any cryptocurrency, you need to ensure that you have sufficient funds in your account. Therefore, you need to make sure you have at least 10,000 to 20,000 USD. Not keeping enough funds to facilitate trading is something you will regret in the long run. So, make sure you have enough funds to enable the trading process. Once you have enough money, you can easily purchase a single coin at a cost of 5 Euros or 1GB for 15 Euros. Before starting the actual trade, make sure you know about the current state of each coin and what is the expected price. This way you can avoid being tricked by the other person. There are plenty of options to open cryptocurrency trading accounts right from a mobile device to web browsers.
7. Real Time Access:
Trading is really useful and you cannot stay far away from real time communication. Crypto currencies can be traded for a short period of time; therefore, the information is updated frequently. Furthermore, the prices of cryptocurrency can change rapidly and you will be able to keep up with these changes without worrying about any issues. You can always stay informed of the latest and upcoming developments of each coin you are trading. Thus it becomes important to know how to communicate with the broker, about the risks and challenges it poses. The cryptocurrency-trading world is becoming increasingly competitive day in day out, so it becomes essential to adapt to new ways of interactions. An excellent communication channel is essential for successful trading.
For the traders who are aware about the risk, scalability is more important than volatility. You will need to analyze the growth and development of cryptocurrency so that you can predict future opportunities. To meet the requirements and expectations of the customer, it is essential to maintain a comprehensive database. In my opinion, the scalability is more suitable for businesses as the digital currencies can be traded using the internet without breaking through a particular barrier. Due to the rapid increase in population, the demand has increased and the amount of data is increasing. People now feel comfortable whenever they are able to contact anyone. Thus blockchain technology is evolving very quickly with the requirement of the business.
9. Decentralized Markets:
The global finance market can never be dominated by the centralized entities like banks, financial institutions or government departments because they try to control the market based on politics. That means that decentralized markets are getting more attention.