Bitcoin is the most sought-after innovative payment network. Satoshi Nakamoto, who is the creator of this currency, is actually not a real person. It is a pseudo name for someone who has invented this technology.
The mystery of its creator makes this unique payment network even more elusive and perplexing. Initially, this system was created as an alternative to physical money during the economic crisis in 2007. It has got wide recognition since then.
Unlike traditional physical money, the reserve of cryptocurrency is fixed. There is a market cap on how many coins circulate in the market, and that is 21 million.
The Difference Between Trading And Investing
Although these two terms are often used interchangeably, trading and investing are different concepts. Trading on the crypto platform is much like gambling in some way. However, instead of betting on a number, you bet on a financial asset’s ups and downs. In our case, it’s cryptocurrency.
In general, trading involves short-term horizon and risk-taking. If you trade with cryptocurrency, it means you are geared for generating profit that exceeds buy-and-hold investing.
On the contrary, investing is a risk-averse venture that has a longer time span. In this case, you will gradually build revenue over a long-term period through buying. People opt for investing because they believe in the innovation or idea behind the currency.
Undoubtedly, both trading and investing imply risk on your assets. However, as it’s been said, trading presupposes higher risk and higher potential returns as a trader leans on future price movements.
Why Trade Cryptocurrency
Today, many people are looking to trade cryptocurrencies, especially Bitcoin. And here are a few reasons for that.
- First, bitcoin is volatile. It means price leaps are rapid and frequent. It may be a drawback for investors, but for traders, it’s an excellent opportunity to make a nice amount of profit.
- Trading is 24/7. Unlike usual stock markets, there are no opening or closing hours. Hence, you can trade whenever you like.
- Bitcoin is global. It means the price is not based on the specific economy or policy.
However, all traders are different with various types of trading methods.
Choosing The Best Trading platform
Crypto exchanges are platforms that simplify purchasing, selling, and trading. Mind that each trading platform is tailored to certain kinds of users with a specific goal. Bitcoin trading platform Cryptex, for example, allows you to exchange bitcoin online for electronic currencies and vice versa.
Hence, determine your goals first. Are you looking to take long term trades, or do you want to trade short term?
Once you have thoroughly considered your goals, you will need to make sure the trading platform gives the best trading experience. You can do this by considering the following points:
- The reputation
- Insurance fund
- Security features
- Asset prices
- The fees
The bitcoin trading world is evolving at a breakneck pace. Hence, only a forward-thinking and agile trading platform can keep up with technological innovation. And while digital assets may seem confusing, they are certainly worth finding your way around them.