Crypto Trading Basics. Which Cryptocurrency is still good for trading?

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Cryptocurrencies are digital currencies that exist in token form and are intangible. These cryptocurrencies are very volatile and are often designed to be free from government interference. To date, there are over 18000 cryptocurrencies. Some, like bitcoin and Ethereum, are very popular because of a number of factors like security and market stability, while others are less popular and hence realize low trading volumes.

Over the past 10 years, cryptocurrencies have become very popular worldwide since they are regarded as a suitable alternative to fiat currencies. Millions of investors engage in crypto trading, but success depends on the Cryptocurrency you choose and your risk-taking abilities, as well as your trader habits.

When choosing the best Cryptocurrency to invest in, a crypto trader should consider the volatile and speculative nature of the individual currency before buying it. After considering this, you can then think of where and how to buy it. The ultimate priority when choosing which crypto to invest in must be the safety of your investment.

Most cryptocurrency traders prefer going for cryptocurrencies that have been in the business for a long time. But should this really be a consideration? Well, there is some truth to it since cryptocurrencies that have been in the forex market for longer are often safer and more stable compared to the new entrants.

However, if you want to start crypto trading, it is vital to at the very least compare the stock market since all cryptocurrency exchangers are highly speculative assets with relatively short track records. Learn everything you need to know about Crypto before trading.

The best cryptocurrencies that are still good for crypto trading

Bitcoin

Bitcoin is the world’s premier Cryptocurrency and the pacesetter in the world of forex trading. It is credited for shaping the forex trading market. Even though Bitcoin prices have skyrocketed over the years and are currently termed “unreachable” for “common” people, it doesn’t hurt to buy what you can afford. BTC is the least volatile Cryptocurrency with the most significant crypto market share.

Solana (SOL)

Aside from bitcoin and Ether, Solana is an upcoming and very promising cryptocurrency to invest in. Unlike other cryptocurrencies that are an extension of the bitcoin technology, Solana has its own blockchain, which utilizes a unique technology called Sol token. It debuted in the forex trading market in 2020, and within a year of its existence, it had appreciated from $1.50 per one Solana to $170 at the end of the financial year. Now you see why you should trade Solana; it is definitely destined for greatness. Moreover, Solana is also one of the cryptocurrencies with the lowest transaction fees making it a force to reckon with in the near future if you are considering crypto trading.

Dogecoin

It was created in 2013 by two ambitious software engineers: Billy Markus and Jackson Palmer. Dogecoin, which was originally called memecoin, was a big hit in 2021, and its popularity is getting better with time. Its emblem is an image of Shiba Inu. Dogecoin is an accepted form of currency in various countries but is more prominent in the USA. The acceptance by several big players in the US market like SpaceX, Dallas Mavericks, and Kronos led to the price of this Cryptocurrency skyrocketing.

After the mention of Dogecoin by Elon musk on the ‘Saturday Night Show” in 2021, the price skyrocketed to an all-time high hitting $0.74 that week. Currently, forex traders can buy one dogecoin at 11 cents. Cryptocurrency also boasts of a market value of 15 billion dollars.

Tether (USDT)

The market value for one USDT is 1 dollar. It is one of the best cryptocurrencies to trade because of an array of reasons, one of the biggest ones being its large trading volume. It boasts of 24-hour trading volume, making it a critical player in the cryptocurrency space and one of the top go-to cryptocurrencies by forex traders.  

The high trading volume makes it a good cryptocurrency for crypto trading. Moreover, the market price of Tether is very stable and hardly goes below $1. If you were still thinking otherwise, then you now have an option.

Ethereum (ETH)

Ethereum is the second most popular Cryptocurrency after bitcoin. Moreover, ETH is the most actively used blockchain globally. It pioneered the idea of decentralized finance, or DeFi – a new feature that cuts out traditional links and go-betweens like banks, brokers, and centralized exchanges. It is prevalent among forex traders because aside from being a cryptocurrency, Ethereum is also a blockchain. A forex trader can create new tokens or decentralized applications with Ethereum. For day traders, Etherium is the Best Cryptocurrency to trade because it is a very volatile currency.

This means you can profit from the fluctuations throughout the day. Ethereum is priced at $3850. But who cares? Serious forex traders only consider profits, not input!

Litecoin (LTC)

LTC was launched in 2012, and since then, the market response and success have been overwhelming, following in the footsteps of bitcoin. This earned LTC the nickname “silver to bitcoins gold” the workability of LTC is based on an open-source global payment network that uses Scrypt as PoW. The Scrypt is controlled by one central authority. Although most crypto traders view Litecoin as a clone of Bitcoin, it has a faster block generation rate, enabling forex traders to make quicker and timely transactions.

Cardano (ADA)

ADA is an Ouroboros proof-of-stake cryptocurrency. It is regarded as a scientific cryptocurrency because it was created by a group of engineers, mathematicians, and cryptography experts. The project was conceptualized by Charles Hoskinson, one of the founders of Ethereum, after breaking out of the team with managerial disagreements.

Currently, Cardano is the 8th largest Cryptocurrency, with a market capitalization worth $26.9 billion. One ADA retails at around $0.80

The creation of Cardano was solely based on extensive experimentation and peer-reviewed research. Because of the comprehensive crypto trading analysis prior to its development, Cardano is one of the best PoS peers. It has even been nicknamed “Ethereum Killer” because of its extensive capabilities to win the cryptocurrency market. Since Cardano is still in its developmental stages, it is expected to battle out with the bigwigs like bitcoin for market share after the improvement of its Defi applications.

Cardano is currently focused on developing a financial operating system through the development of Defi products like that of Ethereum. Moreover, they are poised to provide solutions for chain interoperability, voter fraud, and legal contract tracing. This will definitely be a game-changer, and with such goodies in store, it makes it a lucrative cryptocurrency to trade because it is yet to hit its potential.

Polkadot (DOT)

DOT is a very unique PoS cryptocurrency. It is designed to connect compatible and non-compatible blockchains to work together. Its core component is the relay chain which allows interoperability of different networks. Polkadot is a good cryptocurrency for trading because, unlike Ethereum, forex traders can develop their own blockchain while using the existing Palkadots chains. This feature is known as shared security, and it makes DOT one of the safest currencies for forex trading.

Palkatods market capitalization currently stands at $17.4 billion, and one DOT goes for $17.59. this Cryptocurrency is perfect for the cautious traders who are always concerned with how secure their investment is.

Binance coin

Binance recently released its Cryptocurrency, the Binance Coin, which became an immediate success. Forex traders trusted Binance coin because of the established staus of Binance exchange. It is the 3rd largest Cryptocurrency by market cap. This Cryptocurrency is perfect for day traders because its demand is increasing by the day. One Binance coin is priced at $560, and I can assure you that investing in Binance coin is worth every penny. This is because regardless of being volatile to the market drivers, the value of the Binance coin is very stable. Moreover, it has a broad market volume and is overly accepted worldwide; therefore, selling or buying Binance is easy. Binance offers an opportunity for forex traders and investors to bet and flourish within the Binance ecosystem, including the world’s largest cryptocurrency exchange market, and that’s why it is off to an early and commanding lead in the buying and selling of digital assets

Tron (TRX)

Tron has become a global sensation among forex traders and enthusiasts. This is because TRX is highly volatile, making it an excellent option for forex day traders, especially those looking for long-term trading opportunities. Moreover, for every transaction made, TRX rewards the forex trader. Since Tron has a valuable and relatable idea, the Cryptocurrency is growing rapidly

Can you get rich from trading crypto?

This is a question that often plagues new cryptocurrency traders. The answer, unfortunately, isn’t as straightforward as we would like it to be. While cryptocurrency trading can certainly result in high returns, there’s no guarantee that you will become rich overnight. Cryptocurrency trading takes time, patience, and strategy. When you are ready, open a crypto live account with IMGFX.

How do you start trading cryptocurrency for beginners?

If you’re serious about making money trading crypto, you need to be patient and do a lot of research. There are many different strategies that traders use to make profits. Some people trade based on technical analysis, while others trade news or rumours. Check our YouTube channel to follow market news and trends. Some of the best cryptocurrency trading strategies are the following:

HODL: This strategy is simple but effective. It involves buying cryptocurrency and holding onto it for a long period of time, regardless of market conditions.

Day trading: This strategy involves buying and selling cryptocurrency within the same day. You take advantage of short-term price fluctuations in the market to make profits.

Other more advanced crypto strategies are:

Swing trading: This is a longer-term strategy where you buy a cryptocurrency and hold onto it for days or weeks, taking advantage of larger price swings.

Scalping: This is a very short-term strategy where you take advantage of small price fluctuations in the market to make quick profits.

But the best cryptocurrency trading strategy for beginners is to start with a small amount of money and to trade cryptocurrency pairs that are less volatile.

You can also use stop-loss orders to limit your losses. When you’re starting out, it’s important to trade slowly and carefully until you get a feel for the market.

crypto trading

The best currency exchanges that are good for trading

No matter how good your cryptocurrency choice for trading is, you might not realize considerable profits if your choice of currency exchange is bad. Now that you know Which Cryptocurrency is still good for trading and some of the best crypto trading strategies, you need to know where to buy or trade crypto.

But what is a crypto exchange?

A cryptocurrency exchange is a platform that allows you to buy, sell, or trade cryptocurrency. There are many different types of exchanges, and each has its own benefits and drawbacks. It is interesting how a crypto exchange makes its money, as it is not done through transaction fees like a traditional stock or forex broker.

A cryptocurrency exchange makes money by charging a listing fee to the cryptocurrency project that wants to be listed on the exchange. The cryptocurrency exchange will also charge a small percentage fee (usually 0.25%) when you buy or sell coins on their platform.

What Should You Look at When Choosing a Cryptocurrency Exchange?

The most important thing to look for when choosing an exchange is security. You want to make sure your coins are safe and that the platform is reputable. Other facts to have in mind when choosing a crypto exchange are:

  • Fees
  • Ease of use
  • Available cryptocurrency pairs

Once you’ve chosen an exchange, you need to create an account and deposit some money. Then you’re ready to start trading! We have highlighted the best cryptocurrency exchange platforms that will definitely make your forex trading journey a success. Read on,

How do people use bots to trade crypto?

Cryptocurrencies are incredibly volatile, with prices fluctuating dramatically every minute. The increase or decrease in market value results from different market drivers. Because of crypto volatility, Investors get the opportunity to take part in cryptocurrency trading worldwide thought the day. These rapid changes in cryptocurrency make physical trading difficult, and this is where bots come into play. Bots are AI tools used by forex traders to capitalize on the cryptocurrency markets that trade 24/7  to react quicker when profitable cryptocurrency price differences occur.

To achieve optimal profits, cryptocurrency traders must capitalize on the quick changes in crypto prices, and humans cannot be efficient and first. And that’s not all; forex traders cannot dedicate all their time to crypto trading since most of them are often engaged with other things so using crypto automated trading bots do help traders be consistent.

As a forex trader, you can subscribe to free bot programs or premium packages with user fees if you are an established trader. With IMGFX you are free to do so, whatever makes you win! And as Finance Magnates said, IMGFX is the perfect broker to start trading.

Another type of bots are those that copy the strategy of other traders. Crypto copy trading is becoming quite popular. Something to watch out for would be whose trades you are copying!

Cryptocurrency and cryptocurrency CFDs – What’s the difference?

 CFDs

Contracts for differences, otherwise called CFDs, are financial derivatives that allow crypto traders and investors to buy and sell a wide range of assets and securities without necessarily holding any underlying assets. Instead of owning the assets, they trade the assets to gain exposure to the price movements of crypto assets.

But what are crypto assets? Crypto Assets are assets which use public ledgers over the internet to prove ownership. Crypto assets use cryptography, distributed ledger technology, and peer-to-peer networks to create and verify transactions. Check these and other Frequently asked questions on our IMGFX FAQ.

CDF Trading

By trading CFDs, investors profit from an increasing or a decreasing price, depending on whether the trader opts for long or short-term forex trading strategies. 

When trading Contracts for differences, forex traders enter agreements with crypto brokers offering contracts for the underlying assets that suit their financial needs. Traders who think a particular asset price will shoot up can open a long position, while those who feel that the market value can decrease can sell an opening position.

When trading CFDs, you can calculate profits and losses by observing the difference between when a position is opened and closed. If the trader’s predictions go as they taught, the broker pays the difference between the opening and closing price of the CFD position multiplied by the CFD units that the forex trader bought. If the forex trader’s prediction was wrong, he pays the broker the difference multiplied by the CFD units.

Trading cryptocurrencies on a crypto exchange

Unlike cryptocurrency CFDs, trading cryptocurrencies directly on crypto exchanges requires technical know-how of how the crypto space functions. Unlike fiat currencies, cryptocurrencies are virtual currencies running on public blockchains which are decentralized since they are not controlled by any central authority. Because of this, it’s up to cryptocurrency traders to securely trade and store cryptocurrency, which is often for first-time buyers. When trading crypto through a crypto exchange, you are trading on the crypto spot market.

As a forex trader, you must first open an account with a cryptocurrency exchange to trade cryptocurrencies and finish the KYC onboarding procedure. Upon completion, fund the account and start trading.

No matter which crypto exchange you choose, they will provide a hot wallet for storing digital currencies and tokens. However, these wallets are not very safe, and therefore creating a personal crypto wallet for storing tokens is advisable to cushion you from falling victim to hackers. There are several wallet types to choose from, including; online wallets, mobile wallets, hardware wallets, or paper wallets. Your choice depends on your intentions of trading crypto. 

When choosing the trading option that works for you, consider price movements and the influencing factors. Cryptocurrencies often experience abrupt price changes influenced by positive and negative news. For instance, the value of Bitcoin diminished in 2021 when mainstream media highlighted the underlying problems of the Bitcoin network’s high energy usage.

Decentralized vs. centralized exchanges- What are the differences

What is a centralized crypto exchange?

These are platforms where cryptocurrency traders can buy and sell digital assets such as cryptos with the supervision of a third party. The 3rd party monitors and secure all monitory transactions on behalf of the user. The supervision is not tracked by the blockchain system.

The trading system requires all users to verify their personal information before using any available tools. If the user is an institution, then it must provide verifiable corporate details for identification purposes.

What is a decentralized crypto exchange?

A decentralized crypto exchange (DEX) is nearly a centralized crypto exchange, only that a DEX doesn’t rely on any third-party interventions. In this centralized system, funds are stored on the blockchain. Moreover, unlike in the Decentralized crypto trading system, Peer-to-peer trading (P2P) is allowed. This only happens with the use of an escrow payment system or proxy tokens.

DEXs aim to complete crypto transactions more quickly and cheaply than the centralized trading system thus increasing profit margins.

What to consider when choosing a cryptocurrency exchange for trading

There are several factors that determine the success of a cryptocurrency trader, one major one being the cryptocurrency exchange you choose. Here are some factors you should consider before investing in any cryptocurrency exchange;

Security

Each cryptocurrency exchange has its own insurance policies and security measures that regulate buying and selling of the coin. You should settle for cryptocurrency exchanges with friendly policies that ensure your investment is safe.

Accessibility

In some countries, cryptocurrencies are illegal or totally unregulated. Before investing, ensure that the cryptocurrency exchange In available in your area of jurisdiction.

Fees

You must understand the market price of the currency (both buying and selling price) before settling on any cryptocurrency. From this, you can calculate your approximate profit range and settle on the most viable one to invest in.

Coins offered

Check the coins offered by the exchanger since some have limited availability of coins.

Storage

Most, but not all exchanges have a crypto wallet. Therefore, you must consider whether the cryptocurrency exchange has a wallet where you can keep your investment safe if you are looking for long-term investment opportunities.

crypto trading

Conclusion

Investors are seeking good entry points to have plenty of viable options among the best cryptocurrencies in the market: especially bitcoin and Ethereum. For seasoned and established crypto traders, risking big keeps them afloat since they rip big with big stakes. bitcoin and Ethereum are less volatile and fairly stable making them less profitable for new forex traders who want to capitalize on fluctuations and day trading.

As a new trader, it is vital to understand the mechanism of buying, selling and exchanging cryptocurrencies before investing in any cryptocurrency. Check out our blog about Forex and Crypto before trading.

The newer and cheaper cryptocurrencies are appropriate at this stage since they are more volatile and capitalizing on these differences earns you profits when crypto trading. If you want to start trying out Crypto trading without risk, open a crypto demo account.

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