Etoro Best Crypto Trading Platform
We briefly mentioned eToro earlier and for good reason. Put simply, eToro is the overall best platform to invest in and trade cryptocurrencies. Crucially, irrespective of whether you are looking to HODL cryptocurrency over many years or engage in a short-term day trading strategy eToro has you covered.
First and foremost, this platform is heavily regulated so you can engage with the cryptocurrency markets safely. This includes approval with regulators in the US, UK, Cyprus, and Australia. eToro offers nearly 60 leading cryptocurrencies to its 25 million+ registered users so you can easily diversify.
Some of the most traded cryptocurrencies on the eToro website include Bitcoin, Ethereum, XRP, Dogecoin, Shiba Inu, BNB, and Cardano. And, we like the fact that the minimum trade size is just $10 you can attempt to make money from cryptocurrency without needing to risk large sums of capital.
The minimum deposit for US clients is also set at $10, so this will suit those of you on a budget. We also mentioned earlier that eToro supports crypto staking. Unlike other staking platforms in this space, eToro does not require you to lock your tokens away for a minimum number of days or weeks. Instead, you can withdraw your tokens at any given time.
What We Like:
- Make money by HODLing or day trading crypto
- Minimum deposit is just $10
- USD deposits are processed fee-free
- Approved by licensing bodies in the US, Europe, and Australia
- Nearly 60 cryptocurrencies supported
Diversify Your Crypto Portfolio
It doesnt pay to have too much invested in one single cryptocurrency.
As with stocks and shares, spread your money out among different digital currencies.
This means you dont risk being over-exposed should one of them plummet in value especially as the market prices of these investments are highly volatile.
There are thousands to choose from, so do your research.
Case : Speculating Price Movements Day Trade Cryptocurrency
In this picture, you prefer to speculate on cryptocurrencies price movements and have adopted a day trading strategy. You noticed strong volatility in the daily prices of Bitcoin and Ethereum against each other and want to make money predicting them.
To start, you deposit $1000 with an exchange. After careful analysis of price movement, you stake 1% of your account value per trade. You can either buy an asset on the spot or open positions via futures, options, or other derivatives contracts. You set up a stop loss if prices fall 50% below entry price and a take profit call if prices rise 300% above the amount risked on the trade.
The best tactics you can employ in this scenario are knowing when to open long positions, when to go short, and making good use of margins.
When to open a long position:
If your chart analysis shows that the price of a cryptocurrency might increase over the following days or weeks against the pair youre trading , you can go long. One method is checking the chart to see whether the price has broken above an important resistance line, indicating an uptrend.
When to open a short position:
Go short when your chart indicates the price of an asset might decline for a while. One method is opening a short-sell position when prices reach an overbought level, i.e., the price of the cryptocurrency has maintained an uptrend for a long period up to a point where it cannot reasonably rise any higher.
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How Do You Take Profits In Crypto And Reinvest
So, when should you take profits on crypto? Its tricky to know exactly when is a good time to take profits, as it often involves solid planning and discipline. Its a good problem to have because it means youve made profits. However, it can also be difficult, especially with no clear goal about what to do with the money you made.
Taking profits is tricky. Youre essentially asking: Is this profit enough or do I want more? Categorically, of course, more would always be better. But, when it comes to trading, knowing when to halt is part of being smart and avoiding losses. Furthermore, knowing how to invest crypto profits in lucrative channels also requires research and keen decision-making skills.
To know when to take profits, ask yourself the following questions:
What Is The Best Cryptocurrency Exchange For Beginners
Binance. This is because it has some of the lowest trading fees in the market, provides a complementary mobile app for users to keep track of asset prices on the move, has a comprehensive education resource section and supports one of the broadest selection of payment methods. Additionally, it adheres to strict safety and security standards. All these are factors that make it ideal for a beginner.
Recommended Reading: How To Invest In Bitcoin Stock
Where To Trade Ethereum
Once you have Ethereum, there are several ways of how to trade Ethereum.
Firstly, you can trade on an exchange platform. Many exchanges offer several ways how to trade Ethereum. Some allow for decentralized and person-to-person trading, while others focus on margin and spot trading.
Cryptocurrencies are particularly well suited to decentralized trading. A decentralized exchange is a peer-to-peer online service that allows direct transactions between two interested parties. The trades are visible on a transparent blockchain which allows traders to independently observe transactions in real-time. The decentralized nature of this way of trading eliminates the need to have a centralized entity to settle the transaction.
The current price of a cryptocurrency is called the spot price. It is the price at which a currency can be sold or bought immediately. Buyers and sellers create the spot price by posting their buy and sell orders. In liquid markets, the spot price may change by the second, as outstanding orders get filled and new ones enter the marketplace.
Many exchanges now allow for margin trading, where you can use the current cash or securities in your account as collateral for a loan from the broker . You can then use the loan to make spot trades. The leverage conferred by margin will tend to amplify both gains and losses. In the event of a loss, a margin call may require you to sell the crypto in your account to pay back the loan.
Ways You Can Do To Make Money With Cryptocurrency
There are many ways to earn money in the cryptocurrency markets, but not all of the ways are effective and safe. I will explore some proven ways of investing in cryptocurrency. Here are the top 10.
1 Trade cryptocurrency CFDs
Any product with price fluctuations can be traded in the form of a Contract For Difference. CFD actually is a T+0 margin trading tool, which allows you to trade a larger position with only a few capitals.
For example, you are able to trade as little as 0.1 lot bitcoin with a small deposit as an initial margin.
The advantage of using CFD is you can go long or go short no matter the market moves, you will have the opportunities for risky returns from markets fluctuating.
In addition, trading Bitcoin CFD is more flexible, you can trade 24 hours and 7 days.
It’s also popular to use CFDs to hedge physical portfolios for investors, especially in volatile markets.
Mitrade, as an ASIC-regulated forex broker, offers 300+ global popular instruments, including forex, commodities, indices, US stocks, and cryptocurrencies.
BTCUSD price fluctuates, don’t miss trading opportunities
Mitrade offers you the opportunity to BUY or Sell on all Bitcoin trades, so you can use your preferred strategy regardless of which way the currency is moving.
Speculate on crypto price without owning the crypto
No need to deal with crypto exchanges or open a crypto storage wallet
Low deposit with leverage
The ability to open long/short positions
Also Check: How To Put Money On Bitcoin With Credit Card
How To Make Money With Cryptocurrency In 2022 Top 10 Proven Methods
There are many ways to make money from the cryptocurrency markets. Not only does this include buying and HODLing digital currencies in the conventional sense but also via staking, interest accounts, airdrops, play-to-earn games, and more.
In this beginners guide, we discuss how to make money with cryptocurrency in 2022 across 10 proven methods.
Accept Cryptocurrencies If You Are A Merchant
Another way to earn cryptos is accepting them in exchange for your products or services if you are a merchant. As a merchant, you have access to many cryptocurrencies and Bitcoin payment processors that can help you in accepting cryptocurrencies.
Even online businesses owners and e-commerce websites can adopt this way, thereby getting the dual benefit of crypto price appreciation and also earning cryptos directly.
See this for more details: 7 Popular Bitcoin Payment Gateways For Merchants.
Read Also: What Can Bitcoin Be Used For
How Does Cryptocurrency Work
Cryptocurrencies are digital assets that are powered on the blockchain. Blockchain technology stores a ledger of every transaction of the cryptocurrency on every node powering the blockchain. Nodes are computers that are connected to Bitcoins network to mine Bitcoin. If one of these miners tries to enter false transactions, it will be nullified by the correct ledger.
The correct ledger is determined by the majority of miners records. In theory, you could hack a blockchain by controlling 51% of the cryptocurrencys network in a process called a 51% attack. However, this process is economically infeasible and would require an extremely choreographed hack with billions, if not trillions, of dollars worth of computer hardware.
To transact with a cryptocurrency, you need to have a set of public and private keys. These keys are like passwords generated by your cryptocurrency wallet. Your public key is connected to your wallets address and allows people to send you cryptocurrency. Your private key is used to approve transactions being sent from your wallet only you have access to your private keys.
Contrary to popular belief, many cryptocurrencies dont have a finite supply. Bitcoins total supply is capped at 21 million coins, but many altcoins have a set inflation rate with no cap on total supply, like Ethereum.
How To Trade Cryptocurrency A Beginners Guide
The cryptocurrency markets are ideal for traders that wish to take advantage of ever-changing token prices and high levels of volatility. In this guide, you will learn how to trade cryptocurrency and make a profit as a complete beginner.
In addition to the basics, we will also walk you through the process of placing your first-ever cryptocurrency trading position with a regulated broker.
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How To Compare Brokers
Which cryptocurrency platform you opt to do your trading on is one of the most important decisions youll make. The exchange will act as a digital wallet for your cryptocurrencies, so dont dive in without considering the factors below first.
Some brokers specialise in crypto trades, others less so. Others offer specific products. IQ Option for example, deliver traditional crypto trading via Forex or CFDs but also offer cryptocurrency multipliers. These offer increased leverage and therefore risk and reward. Innovative products like these might be the difference when opening an account cryptocurrency day trading.
Become A Liquidity Provider
Skills: Intermediate to expert
With the growth of DeFi, become a liquidity provider is another handsome way to make money from your existing crypto holding. By becoming a liquidity provider, you will be earning a cut in every transaction happens on a particular decentralized exchanges.
One of the challenges of becoming a liquidity provider is impermanent loss, which is something you have to be mindful of. However there are platforms like Bancor which let you provide liquidity without worrying about impermanent loss. My guess is, in 2021 and in coming years we will see more Dexs coming up with their own ways to handle impermanent loss.
Here is a quick tip on how to become a liquidity provider.
You can use any popular DEX to become a liquidity provider. The only thing you need to have is holding of cryptocurrencies. For example, lets try to provide liquidity on Bancor.
- Connect it with your wallet using Wallet connect or Metamask.
Once connected, you can click on Stake, select the pair and provide the liquidity.
Here is a screenshot which shows how this liquidity provider works:
There are three advantages of providing liquidity:
- Rewards in the form of platform token
- Appreciation of price over time
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Mining Mine Cryptocurrency By Connecting Hardware To Your Desktop Device
The final method to consider from our list of the best ways to make money with cryptocurrency is through mining. In a nutshell, mining refers to the process of connecting specialist hardware to a desktop device, which, in turn, connects to the blockchain of the respective cryptocurrency. The idea is that miners enable the network to operate in a decentralized manner.
This is because transactions are validated when the mining equipment solves complex mathematical equations. And in return, miners are rewarded with newly minted cryptocurrency tokens that enter into circulation, and each block is verified. For instance, in the case of Bitcoin, a new block is created every 10 minutes, and this mints an additional 6.25 BTC.
This 6.25 BTC which as of writing is worth over $660,000, is paid to the miner that successfully solved the equation for the respective block. Although at first glance this translates into a significant amount of money, Bitcoin mining consumes an unprecedented amount of electricity due to the complex nature of each mathematical equation.
Moreover, the amount of specialist hardware required to stand a chance of mining a new Bitcoin block is also considerable in dollar terms. With that said, there are many other cryptocurrency projects that require miners and in many cases, competition is thin on the ground. Ultimately, you just need to ensure that the mining rewards you receive are worth more than you invest.
Best Cryptocurrencies By Market Capitalization
More than 17,500 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. And cryptocurrencies continue to proliferate. The total value of all cryptocurrencies on Feb. 18, 2022, was about $1.8 trillion, having fallen substantially from an all-time high above $2.9 trillion late in 2021.
If that weren’t enough to navigate, there are millions of NFTs or nonfungible tokens which are based on similar technology and offer ownership of content such as pictures and videos.
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How To Trade Cryptocurrencies Using Technical Analysis
Heres a simple way to get started with technical analysis. You can look for market correlations by comparing price charts for different coins.
For example, check to see if the coin you want to trade is positively or negatively correlated with Bitcoin. That is, determine whether its price tends to move in the same direction as Bitcoins at different trading periods.
Heres the price chart for Propy for the same period:
As you can see, the price of Propy has been volatile, but at the time of writing it was just about the same as it was a full year earlier. From that perspective, holding Bitcoin during that year would have been much more profitable.
This type of analysis may help you decide whether to keep more of your portfolio in BTC or branch out into coins that usually gain or lose value compared to Bitcoin.
Having a diversified portfolio is a sensible way to minimize losses and take advantage of market gains.
Your next step, of course, is to establish an account at the best crypto trading platform.
This text is informative in nature and should not be considered an investment recommendation. It does not express the personal opinion of the author or service. Any investment or trading is risky, and past returns are not a guarantee of future returns. Risk only assets that you are willing to lose.
Decide Where To Buy It
There are many ways to buy cryptocurrency, though the most accessible method for beginners is likely to be a centralized exchange. Centralized exchanges act as a third party overseeing transactions to give customers confidence that they are getting what they pay for. These exchanges typically sell crypto at market rates, and they make money on fees for various aspects of their services.
If you’re more accustomed to traditional brokerage accounts, there are a few online brokers that offer access to cryptocurrencies as well as stocks. Of the online brokers reviewed by NerdWallet, these include Robinhood, Webull, SoFi Active Investing and TradeStation. If you’re looking for an exchange that operates solely within the cryptocurrency world, look for pure-play crypto exchanges. These platforms, such as Coinbase, Gemini and Kraken, won’t give you access to core assets like stocks and bonds, but they typically have a much better selection of cryptocurrencies, and more on-platform crypto storage options.
» Investing in cryptocurrency? Here are our picks for best cryptocurrency exchanges and platforms.
Though centralized exchanges are relatively easy to use, they also can be an attractive target for hackers given the volume of crypto that flows through them.
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A Beginner’s Guide To Currency Trading
The first step in cryptocurrency trading is to find a suitable cryptocurrency trading platform and create an account. Different cryptocurrency traders have different needs and goals when it comes to trading. Fortunately, there are a variety of trading platforms to choose from on the internet. There are various factors to consider before choosing a platform such as security, ease of use, number of assets supported and many others.
After selecting a reliable platform, the next step is to create an account. Most platforms will provide you with a registration form to complete. You will need to enter a valid email address, choose a strong password and then click register. You will then be required to verify your account: an email will be sent to your address with a code that you use to verify your account.
After successful verification, the next step is to deposit your initial capital and begin your cryptocurrency trading journey. There are several methods of depositing funds such as credit/debit cards, Skrill, bank transfer, etc.
Trading cryptocurrencies might sound simple. However, there are many factors that determine whether you will be successful or not. Cryptocurrency trading is not a get-rich-quick scheme, but a wealth building and income generating method that requires discipline, patience and skills. Here are some tips to help you become a good cryptocurrency trader:
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