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Cryptocurrency is a highly volatile asset, so many investors are also like to trade with them. If you can measure the market right. You can receive much higher returns from trading crypto than traditional investments. The traders of cryptocurrency usually have one of two goals: To collect bitcoin or make a profit in USD. In the cryptomarket, it is easy to increase in USD for your portfolio.But its a more challenging to increase bitcoin value. To track your portfolio’s bitcoin value, you can trade in altcoins against bitcoin on exchanges like Coinbasepro.
Decide how would you like to trade in cryptocurrencies
There are two ways to trading in cryptocurrencies, buying the digital currency in the hope, they increase in value. Thinking about their prices using CFDs .
Trading in cryptocurrencies using CFD
CFD means contracts for differences; it is a financial contract and popular form of derivative trading. You agree to exchange the cryptocurrency price from an open position to a closing position in this contract. CFD is a secondary product because it permits you to take a risk on financial markets like shares, forex, indices, and products . Without taking ownership of the fundamental assets or cryptocurrency. If you open a high position and the value of cryptocurrency increases. Then you will make a profit, and the value decreases, you will make a loss -For a short position, the opposite is true.
Buying cryptocurrencies via an exchange
On the other hand, you might decide to buy a cryptocurrency, which means you need to take a part of the ownership of the digital currency completely to keep it in a digital wallet and profiting if the currency value increases. Before you can start trading, you need to open a wallet of cryptocurrency and an account with a cryptocurrency exchange. In this process, there can be a lot of steps, and for an account, you might have to join a waiting list.
Bitcoin. Crypto currency Bitcoin, BTC, Bit Coin. Bitcoin and Ethereum golden coins on a chart. Blockchain technology, bitcoin mining concept
Before Doing Trade ,First Learn How Cryptocurrency Works
From other financial markets, The cryptocurrency market works in different ways that make it very important to understand how it works. And to know the jargon which is used to explain it before you start trading. The cryptocurrency market is a decentralized digital currency network, which means it works by peer-to-peer transaction checks sooner than a central server. When the cryptocurrency buys and sells, the transaction is added to the blockchain. A shared ledger records that data by the process of mining. Cryptocurrency is volatile, making it more important to know what exactly changes in the market. It can be anything from ICO and Blockchain forks to breaking news or any government rules and regulations
Open a trading account
Instead of buying cryptocurrencies, you can trade on them. You can be ready to open a faster position. You don’t need a trading account or digital wallet. In fact, you need to trade via CFD. It is an account with a leveraged trading provider. With the help of IG, You can open an account in a few minutes. So there is no commitment to add funds till you want to put a trade.
Built a strategy for trading
A trading strategy is essential to success for any trader, but even more crucial is for cryptocurrency traders because the market can see the high numbers of Volatility. This is a double-edged weapon where the variability makes the market very attractive, but it isn’t easy to trade. That’s why your trading plan should include risk management tools and an outline of your goals in which cryptocurrency you want to trade, and a procedure for opening and closing trades -called a trading strategy.
Select your cryptocurrency trading platform
Our Trading platform can give you smarter and faster methods to trade cryptocurrencies CFD, with interactive charts, personalized alerts, and fixed risk management tools. You can trade via the IG trading platforming using a web browser, mobile apps, MT4 (Advanced third party platform).
Open, observe and close your first position
Once you have opened your account and chosen your platform with IG, you no need to own a digital wallet. And you can start trading with cryptocurrency straight away.
Whether you have chosen to trade bitcoin, either bitcoin or other cryptocurrency.All you want to do is you need to open the deal ticket for your selected market, and you will see both buy and sell listed prices. You will be able to choose the position size and then select buy to open a long position and sell to open a short position. Remember, once your trade hits a certain level, you can add stops or limits to close the trade and protect from unnecessary risks.
In the section of the dealing platform, you can monitor the profit or loss of your position in the open positions. And when you have determined that it is the right time to close your position, you need to put an equal trade in the opposite directions.
Conclusion
Trade-in cryptocurrency is not a simple task; before starting any trading, you need to understand the basic knowledge of the product thoroughly. You want to build a plan while trading in cryptocurrency. Every time you need to get an update about the market, these will help you know which currency is performing well. Cryptocurrency is a stable market where you can trade with long-term patience. It is not a scheme; it is a long-term investment, So Trading with proper strategy and learn each day.
