Cryptocurrency Trading - Uncovering Achievements and GoalsPaul Roberts 16 / February / 22 Visitors: 254
Cryptocurrency trading is a way to gain financial benefit. There is a need for you to invest because you can use extra money well. Yet it is important that you know that just as there is the opportunity to make a profit, the risk of loss is also really present. Logically, the advice is therefore that you do not immediately invest large amounts at the same time.
In addition, it is best to start investing money that you are willing to lose.
It has been possible for a while to pay with different cryptocurrencies. With your possession of cryptocurrency or by investing in it, you can also make money. There are risks associated with this as with the traditional stock market. Moreover, trading cryptocurrencies has another risk and that is that the crypto market is very volatile. Prices can fall quickly and rise again quickly.
These sharp price changes of the crypto market make that it is not wise to invest a lot of money as a beginner. Especially do not use all your savings for this, but doing a good preparation is important. You can work with a goal of what you want to achieve with your investment. If you lose, you don't lose everything at once.
Another important difference between the crypto market and the traditional stock market is that the crypto market goes through 1X24 hours. The traditional stock market operates in contrast to the crypto market with opening and closing times.
What is cryptocurrency trading? It is simply the trading of virtual or digital money with an exchange or exchange. Of course, you need extensive information about how cryptocurrency trading takes place. Before you start, you need an account on a reliable exchange. Because there are many different exchanges, including unreliable ones.
A good international and reliable exchange is Binance. In the Netherlands, a good and reliable exchange is Bitvavo. If you create an account on a trusted exchange, you will be asked to verify your identity. This is necessary to finally approve your account. It is of course a bit tricky for your privacy, but reliable exchanges have to comply with laws and regulations.
Among other things, they avoid money laundering. Therefore, the verification of the identity of users is necessary. If your account is approved on the exchange, a wallet service is often also offered. This wallet on the exchange has an address to which you can send your purchased crypto. Or crypto you already own. If you have a lot and different crypto, then you should invest in a hardware wallet.
The part of your crypto assets that you will not trade is best stored on your hardware wallet. Cybercriminals are much less likely to steal it because it is stored offline.
Finally, it is wise to create all the security layers that you can create for your account. Your preparation is complete and you can look at what trading crypto further looks like.
Bitcoin trading Netherlands
Your account is now ready. The news is full of Bitcoin so you also want to trade in Bitcoin. In the Netherlands, many people have also chosen this, because you can exchange Bitcoin into many other types of cryptocurrencies. Bitvavo is recommended for beginners, as it is considered the easiest to use.
You can send money to your Bitvavo account in eight different ways. With the credit card, iDEAL and the SEPA bank transfer. You can trade in over 50 different cryptocurrencies. If you have provided your account with Euros, you can buy cryptocurrency with it such as Bitcoin. The Bitcoin Price has now risen sharply.
However, it is not mandatory to buy an entire Bitcoin. You can invest in part of an entire Bitcoin. With the purchased Bitcoin, you can buy other cryptocurrency. When the price of these cryptocurrencies rises, you can sell them and thus make a profit. You convert this profit to euros and deposit it back into your bank account. You have then made money trading crypto.
Remember that there are transaction costs associated with exchanging and sending fiat money and crypto. You do not need to deposit your profits in cryptocurrency, you can choose to store them on your hardware wallet. So you can sell it at a later date when really attractive to do so.
Crypto trading is an exciting activity. Still, you have to keep your wits about you. Good preparation is important with set goals. Invest through reliable exchanges such as Bitvavo and Binance. Set all security measures to secure your account and work with a strong password. After all, it is also good to have a hardware wallet for secure storage of your cryptos.
Paul Roberts 51 years old Born in Edinburgh. Married. Studied at University of Oxford, Department of Public Policy and Social Work. Graduated in 1997. Works at Standard Life Aberdeen plc.