Cryptocurrencies are intangible digital currencies that exist in token form. These currencies are typically designed to be free from government involvement and are highly volatile. There are currently more than 18000 cryptocurrencies. Some, such as bitcoin and Ethereum, are extremely popular because of qualities such as security and market stability, whilst others are less popular and thus experience low trade 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.
Before purchasing a cryptocurrency, a crypto trader should evaluate its volatility and speculative character while deciding which is the best to invest in. After evaluating this, you might evaluate where and how to purchase the item. Priority number one when selecting a cryptocurrency to invest in must be investment security.
The majority of bitcoin traders prefer to invest in cryptocurrencies with a lengthy history. But should this actually be taken into account? There is some validity to this statement, as cryptocurrencies that have been on the FX market longer tend to be safer and more stable than newcomers.
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
Two ambitious software engineers, Billy Markus and Jackson Palmer founded it in 2013. Dogecoin, which was formerly known as memecoin, was a huge success in 2021, and its popularity is increasing with time. Its symbol depicts a Shiba Inu. Dogecoin is a currency accepted in a number of nations, however, it is most prevalent in the United States. This Cryptocurrency’s price skyrocketed after SpaceX, the Dallas Mavericks, and Kronos accepted it for use on the American market.
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 its market response and success have been enormous since then, following in the footsteps of bitcoin. This earned LTC the moniker “silver to bitcoin’s gold.” The functionality of LTC is based on an open-source worldwide payment network that employs Scrypt for Proof-of-Work. The Scrypt is administered by a single centralized authority. Although most crypto traders perceive Litecoin as a Bitcoin clone, its faster block generation rate enables forex traders to conduct transactions more quickly and efficiently.
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.
The current market value of Palkatods is $17.4 billion, and one DOT costs $17.59. This cryptocurrency is ideal for traders who are always concerned about the security of their investments.
Binance coin
The recent launching of Binance’s cryptocurrency, the Binance Coin, was an instant success. Forex dealers had confidence in Binance currency due to the reputable standing of the Binance exchange. It is the third-largest Cryptocurrency in terms of market capitalization. This cryptocurrency is ideal for day traders because of its rising demand. One Binance coin costs $560, and I can promise you that the investment is well worth every penny. This is because, despite the volatility of market forces, the value of the Binance currency is extremely steady. Furthermore, it has a large market volume and is widely recognized globally; therefore, selling or purchasing Binance is simple. Binance allows forex traders and investors to wager and prosper within the Binance ecosystem, which includes the world’s largest cryptocurrency exchange market, which is why it holds an early and commanding lead in the trading of digital assets.
Tron (TRX)
Tron has gained worldwide popularity among forex traders and enthusiasts. Due to its high volatility, TRX is a fantastic choice for FX day traders, particularly those seeking long-term trading possibilities. In addition, TRX compensates forex traders for each completed transaction. Due to Tron’s value and accessible concept, Cryptocurrency is experiencing rapid growth.
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.
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 generates revenue by collecting listing fees to cryptocurrency projects seeking to be listed on the exchange. When you purchase or sell coins on their platform, the cryptocurrency exchange will additionally charge you a tiny percentage fee (often 0.25%).
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 maximize profits, bitcoin traders must capitalize on the market volatility, but humans cannot be both efficient and early. In addition, forex traders cannot devote all of their time to crypto trading because the majority of them are frequently involved in other activities, therefore the use of crypto-automated trading bots does assist traders to stay 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 form of a bot is one that mimics the trading strategies of human counterparts. Cryptocopy trading is gaining popularity. Be wary of whose deals you are attempting to replicate!
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 that 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.
Regardless of the cryptocurrency exchange you select, you will be provided with a hot wallet to store digital currencies and tokens. However, these wallets are not very secure, thus it is suggested to create a personal crypto wallet for keeping tokens to avoid falling victim to hackers. There are a variety of wallet options available, including web wallets, mobile wallets, hardware wallets, and paper wallets. Your decision will rely on your trading objectives.
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.
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 more stable than other cryptocurrencies, making them less profitable for new forex traders who capitalize on fluctuations and day trading.
Before investing in any cryptocurrency, it is essential for a beginner trader to understand the purchasing, selling, and exchanging mechanisms. 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.
