What Is Cryptocurrency and Crypto Trading

These are terms which everyone will have heard about. Cryptocurrencies and bitcoin gained a lot of attention from investors and traders after their invention. Then it went into the background for some time and again became in news in the year 2011.

 The cryptocurrency bitcoin started to become more famous in the year 2011. Investors and traders always talk about the recent trends, rates and prices, and the crypto trading market. But do you know why the crypto or digital currency was created?

What Is Cryptocurrency 

A cryptocurrency is not a hard form of currency that you can see with your eyes and touch with your hand. Cryptocurrencies and Bitcoin are virtual currencies. These are actually encrypted computer files. Each digital currency has a special id and code that is the same all over the world. All transactions that take place with the cryptocurrencies are kept hidden the identity of the user or cryptocurrency holder is also hidden, but the other details of the transactions are always available in the database of the bitcoin blockchain. All transactions of digital currency or bitcoins are verified by the blockchain operators and miners. 

How Do You Invest in and Trade CryptoCurrency?

Over the past years, cryptocurrency got very popular and many investors from the new generation attracted to it very fastly. You should also educate yourself about basic and technical knowledge. Because you have to take so much consideration such as exchanges, wallets, assets, dashboards and taking care of rules and regulations. To make good decisions about crypto trades you can join any signals crypto trending group on the web or Telegram.

Buying Cryptocurrency Through an Exchange

If you are new in the crypto trading market and you want to buy digital currency. you have to exchange your currency for cryptocurrency. By using a reputable exchange you can open a trading account.

These exchanges allow buying and selling along with holding the virtual currencies. These exchanges charge fees for their services. Such as depositing or withdrawing the money to or from the exchange. These crypto exchanges work the same as other traditional trading markets or exchanges.

How to Select an Exchange

The selection of exchange is a very sensitive issue. You should choose an exchange that has a license to operate with the local governments. Check the exchange’s features for users. These features include minimum and maximum deposit limits and withdrawals limits, what they charge, and their fee structure. How much time they consume to make settlement of funds. Are they secure and check their security tracking history? 

Always remember that not all exchanges allow users to buy cryptocurrency with their local currency. So if you are interested in crypto trading and want to buy bitcoin or other cryptocurrency using your fiat currency, be sure that your selected exchange offers this service.

After selecting an exchange link your account to the crypto exchange and link your payment sources. You can link your bank account or debit card with the exchange. Different exchanges have different fee and funds settlement structures. It also depends on the method and way that you choose to deposit funds in your account. Always check the exchange for the preferred option for fast settlement. 

Buying Cryptocurrency 

After funding your account now you are ready to buy digital currency. Now select a pair of cryptocurrencies or digital currency with fiat currency on the exchange to start trading. This pair is also named trade pair and pair of assets. If you choose to trade US dollars with bitcoin the pair will be shown as USD/BTC.

Different exchanges have different sets of trading pairs. Because of different restrictions and rules, most of the exchanges only allow you to exchange fiat currencies for either Bitcoin (BTC) or Ether (ETH). This means that if you want to buy a cryptocurrency with a smaller cap using fiat currencies, you will likely need to first convert the fiat currency into BTC or ETH before exchanging it for the cryptocurrency of your choice.

When you have selected the trading pair now you can place an order. there are normally the two most common and most used types of orders: market orders and limit orders. If they sound familiar, it’s because the types of orders you see on the cryptocurrency exchange work the same way they do in a traditional brokerage account. There is a possibility that your order will not be executed since the execution of trades depends on the prices you set, not just on what is available in the market.