How to Buy, Sell and Trade Cryptocurrency Safely
Read this article to understand how you can buy, sell and trade Cryptocurrency safely. Know the reason for the popularity of Cryptocurrency and how you can trade in it.
Buying and selling cryptocurrencies is done to make a profit. The process is made possible through the crypto market, which has trading platforms. However, buying and selling differ, but they involve exchanging one cryptocurrency to another or for money. An example is Bitcoin and Euthereum. You can either buy or sell a cryptocurrency from Bitcoin to Euthereum or vice versa. The transaction is two-way and needs to be from different platforms for the exchange cycle to be successful and profit earned.
For you to be a trader, you require an exchange account. The process of opening an exchange account only requires completing an online form. An exchange comprises an order book that shows the exchange and the cryptocurrency that is in use.What is Cryptocurrency?
Cryptocurrency is a digital currency that uses a technology called blockchain. This is a decentralized technology that uses many computers to manage and record each transaction. This is the biggest appeal of the technology because there is no one central organization that controls it which helps to create added security along with encryption.
Cryptocurrencies, like Bitcoin, are a form of payment that people can exchange for goods and services online. Fiat currency needs to be exchanged for these "tokens" to then use them as investment assets or to purchase goods and services. How many cryptocurrencies are there? What are they worth?
According to market research website CoinMarketCap.com, there are more than 6,700 cryptocurrencies being traded publicly. New cryptocurrencies are being created all the time through ICO's, or Initial Coin Offerings. ICO's is a way for startups to take investment from the public in exchange for the new cryptocurrency. Investors hope the new currency gets used and invested in which would provide a return on the initial investment.
As of Feb. 18th 2021, the total market cap for all cryptocurrencies was more than $1.6 trillion while Bitcoin's market cap was about $969.6 billion. Why are cryptocurrencies so popular?
Cryptocurrencies have many benefits. Here are a number of reasons people like them so much:Deposits and Withdrawals
Deposits and withdrawals of cryptocurrencies are made through flat currency methods, making transactions through platforms like PayPal common. Notably, to transfer funds to an account, it must contain the name of the account holder. Therefore, payments from anonymous people are not acceptable. There is a limit on the number of transactions you can make on each platform. Though banks do not have a limit on deposits and withdrawals you can make, bank cards and wallets have a limit depending on the CFD platform being used.
It is compulsory to have a bitcoin wallet or any other platform that accepts the transfer of cryptocurrencies. You can transfer the funds to your third-party wallet and then to the specified wallet by the crypto exchange. When using this method, you need to be extra keen when inserting addresses during the transactions. If you make a wrong address transfer, the exchange platform cannot refund your money. How to Trade Cryptocurrencies
The process is quite simple after your exchange wallet is credited, you are free to buy and sell cryptos. This is done through trading the pairs which have the deposit currency that you had initially decided. The most popular pairings on many exchanges are done on Bitcoin and Ethereum; you are assured to trade because you cannot lack pairings by using the two.
Trading cryptocurrencies is commonly done through trading by the crypto prices using CFDs where there is no actual seller. You can only purchase or sell contracts depending on the price of the specific cryptocurrency you want.
Cryptocurrency CFDs are traded through online platforms like OKX. Exchanges like this allow you can buy, sell and trade crypto CFD's. A trader must create an account by completing an online form. It is compulsory to verify your address and identity because it is part of the regulations set.Real estate investing with cryptocurrency
With the advent of cryptocurrencies and blockchain in everyday life, now this revolution has made it possible to buy real estate in Dubai and overseas with Bitcoin. As agencies and private sellers make it easier for buyers to pay in Bitcoin, the cryptocurrency has become the future of the international real estate market. On top of that, many sellers and brokers now accept Bitcoin, Ethereum, USDT and other crypto currencies as a payment method.
PropertyTech companies such as Estati has positioned themselves to assist international investors with real estate investments using cryptocurrencies, especially in Dubai where you have no income or capital gain tax, property yields rocketing over 8% and welcoming legal structure for international investors.Deposits and Withdrawals in Cryptocurrency CFDs
A cryptocurrency is traded bi-directionally (trades are placed no-matter the direction of the market). It would be best if you use the deposit options shown on the platform. However, your CFD trading account must be funded for this process to be made possible. You might be wondering how you will benefit from this; well, the prices vary. Sometimes they are low, and at times they are high. It would be best if you buy when the prices are low and sell when they are high. However, you can trade using the current price or wait until they get to a suitable price for you.
To be part of a cryptocurrency market, you need to be a buyer or seller using an online platform. It is an easy process and does not require much.
