The cryptocurrency market can be intimidating for newbies and seasoned traders alike due to the large amount of jargon and process involved. OctagonTrade Presents How to trade Cryptocurrency?
Decide how you want to trade cryptocurrency
There are two avenues for trading cryptocurrencies: speculating on their prices using CFDs or buying digital currencies in the hope that they will rise in value.
Trade Cryptocurrencies Using CFDs
A CFD is a contract in which you agree to trade the difference in the price of a cryptocurrency between when you first open your position and when you close it. You are speculating on the market price rather than owning the cryptocurrency. If you open a long position and the cryptocurrency increases in value, you will make a profit, but if its price falls, you will make a loss – the opposite is true for a short position.
Buy cryptocurrencies through an exchange
Alternatively, you can decide to buy a cryptocurrency, which means that you become the owner of part of the digital currency, with the intention of keeping it in a digital wallet and profiting if its value increases.
Before you can begin, you need to open a cryptocurrency wallet and an account with a cryptocurrency exchange. This process may have many steps and you may need to register on a waitlist for an account.
The cryptocurrency market works differently from other financial markets, making it essential to learn how it works and understand the jargon used to describe it before you start trading.
The cryptocurrency market is a decentralized digital currency network, which means that it operates through a peer-to-peer transaction control system, rather than a central server. When cryptocurrencies are bought and sold, transactions are added to the blockchain – a shared digital ledger that records data – through a process called ‘mining’.
Cryptocurrencies are also known for their volatility, which makes it important to know what is likely to move the market – it could be anything from ICOs and blockchain forks to breaking news and government regulation.
Opening an account
When you trade cryptocurrencies, instead of buying them, you can be ready to open a position much faster. You don’t need a digital wallet or an exchange account. In reality, an account with a leveraged trading supplier is all you need to trade through CFDs.
With Octagon Trade, you can open an account in minutes, and there is no obligation to add funds until you want to complete a trade.
OctagonTrade was created by people like you – with enthusiasm and passion to enter the financial market. With a lot of expertise in different fields such as technology, high frequency trading, market analyst and specialist, mathematician, data analyst and more. Bring you the most updated technology on the financial market, a dedicated and personalized service to each of our valued customers. Become a member of Octagon Trade today and be part of our success for a strong financial future.