Cryptocurrency is a once-in-a-generation phenomenon in the investment world. At its inception, its value was equal to around one-thousandth of a penny. To put things into perspective, if you had bought $10 worth of Bitcoin in 2010 and left it untouched until early 2021 when it peaked at around $48,000 per coin, your digital assets would have been worth around $5 million. You don’t have to be an accountant or financial advisor to see that digital currency has the potential to provide an exponential return on your investment.
Even though there is a lot of money to make as a cryptocurrency trader, there’s a lot to learn about how to use, trade, and even store your digital currency. Cryptocurrency is like any other type of investment in that it’s prone to risk, so it’s important to learn as much as possible before you begin investing your disposable income. Continue reading to learn more about trading crypto and the different platforms for trading.
How does digital currency work?
Whenever you hear people talk about crypto assets like Bitcoin, Litecoin, Ethereum, and Dogecoin, they’re likely talking about investment opportunities. However, when Bitcoin was invented over a decade ago, it was created as a means of conducting international peer-2-peer transactions online.
Blockchain technologyis what made Bitcoin work so well as a means of handling transactions as each transaction is placed on a ledger that’s visible to every node or computer in the blockchain. Each transaction is final and visible to all. The democratization and transparency of this new form of money are what has made it so popular not only in the United States but around the rest of the world as well.
The value of a digital currency depends on the volume of people buying, selling, and spending it, so in terms of being an investment, it works much the same as stocks. Even though it’s money, it’s easy to see why people tend to use digital currency as an investment tool rather than its cash value. If you’re a wise investor, you could be another story of going from working hard to hardly working and lounging on a private beach in linen ankle pants, sipping mojitos.
What are some of the crypto exchange platforms?
One of the most important decisions beginner traders have to make is which cryptocurrency exchange is the best for them. There are many different platforms and they offer different features, opportunities, benefits, and even challenges.
Binance is currently the largest crypto exchange in the world. It has the largest volume of traders and boasts ease of use and security against malware as a couple of its best features. Kraken, Coinbase, and Coinbase Pro also among the top platforms for traders with Coinbase being the biggest U.S.-based platform. Coinbase is the better platform for beginners.
Why is Coinbase better for beginners than Coinbase Pro?
As the difference in names suggests, Coinbase Pro is a cryptocurrency trading platform that’s better for experienced traders. So, what makes the difference in the Coinbase vs Coinbase Pro argument? The easiest answer is the ease of use Coinbase offers. Furthermore, there are even tools that allow beginners to earn cryptocurrency by learning about different crypto assets and trading tips.
One of the benefits of Coinbase Pro is that the trading fees are much lower than the trading fees for Coinbase because you have more autonomy. Coinbase has a lot of tools to assist beginners, so they charge like financial advisors for their trading fees.
How can you learn how to trade cryptocurrency?
If you want to learn more about the crypto market, you can look up Bitcoin classes in your area. You can find weekend classes in most metropolitan areas, and there are even trading groups in which individuals invest in cryptocurrency together.
The key to maximizing your trading experience is to invest as much time into learning as you invest money into crypto assets. If you make the right moves, you could become another “working hard to hardly working” story.