Wednesday, June 29, 2022

When To Buy And Sell Cryptocurrency

Speculation Fraud And Adoption

Crypto.com | How to Buy and Sell Cryptocurrency Step By Step Guide 2021

Cryptocurrencies have been compared to Ponzi schemes, pyramid schemes and economic bubbles, such as housing market bubbles.Howard Marks of Oaktree Capital Management stated in 2017 that digital currencies were “nothing but an unfounded fad , based on a willingness to ascribe value to something that has little or none beyond what people will pay for it”, and compared them to the tulip mania , South Sea Bubble , and dot-com bubble .The New Yorker has explained the debate based on interviews with blockchain founders in an article about the “argument over whether Bitcoin, Ethereum, and the blockchain are transforming the world”.

While cryptocurrencies are digital currencies that are managed through advanced encryption techniques, many governments have taken a cautious approach toward them, fearing their lack of central control and the effects they could have on financial security. Regulators in several countries have warned against cryptocurrency and some have taken measures to dissuade users. However, research in 2021 by the UK’s financial regulator suggested such warnings went unheard, or ignored. Fewer than one in 10 potential cryptocurrency buyers were aware of consumer warnings on the FCA website, and 12% of crypto users were not aware that their holdings were not protected by statutory compensation.

What Should You Look For When Choosing A Crypto Exchange

Picking the best crypto exchange can be a complicated process.

Important features to consider, says Stephen McKeon, an associate professor of finance at the University of Oregon, are fees, security, and whether they list the assets that you are interested in buying.

First and foremost, youll want a secure exchange, says Spencer Montgomery, founder of Unita Crypto Consulting, which helps the uninitiated learn how to start investing in digital currencies.

As crypto has grown more popular and desirable, its become an increasingly large target for hackers, and many leading exchanges, including Binances international operation and KuCoin, have been hacked recently to the tune of tens of millions of dollars. While exchanges often reimburse those whose coins are stolen through their insurance, you probably dont want to be in that position to begin with. Thats why its important you only invest your money on reputable exchanges, says Montgomery.

You can minimize your risk by spreading your crypto purchases across multiple exchanges or moving your crypto off of an exchanges default wallet to your own secure cold wallet that is not connected to the internet , though youll need to keep up with your passcode or you could lose access to your crypto forever, he notes. But youll also need to look out for withdrawal fees when you move crypto off of an exchange. These often vary by coin type.

Whats more, low-trading markets may end up costing you on sales.

Begin By Setting A Target

Start setting your target by deciding specific coin values at which you want to sell or buy a cryptocurrency. You can then employ various techniques, like limit sell orders, that allow you to close your trading once your coin hits a specific higher price.

Therefore, deciding whether you want short-term gains or secure a long-term wealthy future will help you decide when to buy and sell crypto in the market.

Read Also: 7 Reasons to Invest and Trade in Cryptocurrency

Recommended Reading: Can I Buy Bitcoin On Cash App

Timing A Crypto Buy Can Be A Very Challenging Project But There Are Some Trends That Seem To Be Fairly Common In Crypto Markets

Cryptocurrency is a volatile asset class that experiences a lot of ups and downs. Because of that, people often get the idea that they should be trying to time their investments — purchasing within specific windows to get the best possible price. However, because cryptocurrency is traded 24 hours a day by investors around the world, timing a cryptocurrency buy is never cut and dried.

If you want to invest in crypto, your best bet is to practice dollar-cost averaging. Using this method, you buy a little bit at a time over an extended period. Even if you invest at some intervals that turn out to be not all that low, you will catch others that are very low, and it may average out.

There are ebbs and flows to the crypto market that vary wildly depending on the specific cryptocurrency you’re buying. Tokens may trade with yet another pattern. For someone intent on timing a crypto purchase, it will pay to really analyze the history of specific investment types.

Best Exchanges For Selling Cryptocurrency In 2021

Buy And Sell CryptoCurrency With Blockchain.

Cryptocurrencies like Bitcoin, Ethereum, Ripple, Dogecoin, or Litecoin can be sold on several exchanges back to the original source you deposited with, or you can exchange them into stablecoins like Tether .

Selling cryptocurrency can pose quite a problem to people who havent tried to previously. As mentioned, it is quite profitable to learn how to dispose of your digital assets yourself without needing an intermediary aside from the broker that you are using. The basic advantage of this is you can avoid the risk of losing your digital assets along the way or being scammed by third parties. It is also important if you want to gain the actual value of your crypto without large fees that affect your profits.

Here are some of the best exchanges to use whenever you are looking to sell your cryptocurrency for fiat:

The brokers/exchanges above are some of the most popular in the cryptocurrency industry. They are prominent and indispensable for millions of investors that clamor for seamless trading as well as effortless selling. Primarily, they are structured in a way that appears friendly to novice traders and virtually everyone with an interest in digital assets.

Beyond these, the majority of the above exchanges offer several methods of crypto-to-fiat liquidity via banking integrations, credit/debit cards, and secured peer-to-peer services.

Read Also: Is Robinhood Safe For Crypto

Cfd Trading On Cryptocurrencies

CFDs trading are derivatives, which enable you to speculate on cryptocurrency price movements without taking ownership of the underlying coins. You can go long if you think a cryptocurrency will rise in value, or short if you think it will fall.

Both are leveraged products, meaning you only need to put up a small deposit known as margin to gain full exposure to the underlying market. Your profit or loss are still calculated according to the full size of your position, so leverage will magnify both profits and losses.

Crypto Taxation In The Us

The Internal Tax Revenue Service in the United States is bearing down on digital currencies and it has developed a taxing structure for the industry. It is important that potential or active investors in the United States know the basics of this structure to stay on the safe side.

The tax rate for cryptocurrency for federal taxes is the same as the capital gains tax rate. Majorly, there is a classification for cryptocurrency taxes as short-term and long-term capital gain taxes. The ratio is from 10 to 37% for short-term capital gain taxes and 0 to 20% for long-term capital gain taxes in 2021.

For short-term capital gains, the tax rate is measured based on the holding period. If you hold your crypto for less than 365 days, the IRS would classify it as ordinary income and therefore subject to the short-term capital gains tax.

The rates at which short-term capital gains are charged depending on the value of your crypto and the entity holding it. On the other hand, long-term capital gains are subject to tax once the crypto has been in the individual or collective possession for a period above 366 days. The tax rate is between 0-20 percent as the actual taxing begins from $40,401.

Your crypto also is subject to tax if you earn crypto interest from decentralized finance, earn airdrops, crypto payments, staking pools, and crypto mining. To learn more about cryptocurrency taxing in the US, visit the IRS FAQs section.

Recommended Reading: When Will Crypto Bounce Back

Keep Track On The Market Volatility

This tip is also useful while doing your research and technical analysis. All cryptocurrencies including Bitcoin, are quite volatile. The price can surge high, hitting an all-time high, and go down, hitting rock bottom within a day.

Apart from considering the price predictions, it is also significant to keep track of its rally over the past few years, factors that might boost its price, adoption rates, future developments, etc. These are a few important factors to consider before buying or selling a cryptocurrency. A simple tip is to have a close target for tradings when the crypto is highly volatile in a continuous pattern.

If Youre Thinking Of Investing In Cryptos Consider Whether Buying Or Trading Will Suit Your Needs Best Heres What You Need To Know

How to use Coinbase to Buy and Sell Cryptocurrency

Cryptocurrencies have been nothing if not exciting for many investors. They have natural appeal: they have gone up a long way, and investors are lured by the apparently chunky returns on offer. Their volatility also offers lots of opportunities for those looking to trade on price movements. If you want to try your hand, here are the steps you need to take.

Read Also: How To Get Crypto Airdrops

Cryptorocket Top Crypto Trading Platform

Founded in 2018, CryptoRocket is a newcomer to the crypto scene. The platform operates out of St. Vincent and Grenadines but is not regulated by any financial authority.

Aside from offering cryptocurrencies, CryptoRocket offers 55 FX currency pairs, 64 stocks, and 11 indices.

It offers advanced chart tools as well as market news and analysis to help users trade with confidence.

CryptoRocket offers one account type, the Standard CryptoRocket account, with leverage up to 500:1. Another unique style is that CryptoRocket adopts a segregated account system in which customer funds are kept separately from the companys account. CryptoRocket accepts a low minimum deposit of $10, and you can pay with credit/debit cards, wire transfers, and Bitcoin.

Pros

Your Capital is at risk.

Plus500 Regulated Platform Cfd Broker

Plus500 is a global CFD broker that is publicly traded on the London Stock Exchange . It was founded in 2008 and is regulated by the FCA and ASIC.

Like Capital.com, Plus500 offers CFD products only, and users can access over 2,000 international financial instruments, including FX pairs, commodities, shares, indices, bonds, and cryptocurrencies.

Plus500 offers a seamless and smooth trading experience allowing users to place trades easily. It also operates with an extra layer of security with its two-step login process.

In its trading platform, Plus500 allows the integration of the WebTrader 4, which is quite good for experienced traders. It requires a minimum first deposit of $100 and accepts payment through bank transfer, credit/debit cards, and e-wallets. It supports 16 fiat currencies cutting across the US Dollars and the British Pounds.

Pros

Your Capital is at risk.

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How To Buy Cryptocurrency Quick Guide

Do you want to buy cryptocurrencies like Bitcoin right now? If yes, you can follow the four quickfire steps outlined below to get started.

  • Open an account: Youll first need to open an account with a trusted cryptocurrency broker. We recommend eToro, as the platform is heavily regulated, supports multiple deposit options with super-low fees.
  • Upload ID: As a regulated brokerage site, eToro will ask you to upload a copy of your government-issued ID.
  • Deposit: You can now deposit funds with a debit/credit card, Paypal, Neteller, Skrill, or a bank wire.
  • Buy Cryptocurrency: Search for any cryptocurrency of choice and buy it commission-free.
  • Does Bitcoin Make Sense For You To Invest In

    Top 5 Exchanges to Buy and Sell Cryptocurrency in Nigeria ...

    With most investments, there is a large measure of risk and research needed to feel confident in the investment strategy. Because the crypto market is so volatile, a riskier investment like Bitcoin can pay off big.

    If you want to get into cryptocurrency trading, Bitcoin is a good starting place because it has the longest history, good trading volume, and profitable volatility. And investing in Bitcoin can diversify your investment portfolio, although most experts recommend that cryptocurrency be less than 5% of your total portfolio.

    Want to learn how cryptocurrency can open more banking opportunities? Read the latest on cryptocurrency banking strategies and trends.

    Related Link: 5 Common Benefits that Blockchain Has on Financial Services

    Read Also: What Are The Newest Cryptocurrencies

    Fa Vs Ta Which Is Better

    It entirely depends on the trader profile. Do you want to be the kind of trader that prefers to get in and out of trading positions multiple times a day ? Then crypto technical analysis will be your best friend. Instead, do you prefer to research and make informed bets every time ? Then a mix of both is the way to go.

    Note: As a trader, you cant have enough tools in your arsenal. Applying both FA and TA will give you the best chance of identifying the best trading and investing opportunities in the crypto market. This is because the two techniques complement each other in so many ways.

    For instance, you may use FA to determine that an asset is worth investing in. What you may not uncover with FA, however, is the right time to invest. For this, you will have to rely on technical analysis. Conversely, if you are using TA to work out future price movements for a given asset, you can use FA to confirm whether or not the price trend you are witnessing is poised to continue.

    Therefore, there are advantages to using either technique over the other at various moments in your research, but to have a more complete picture, use both.

    Should One Buy Low And Sell High

    Buying low and selling high can be a great strategy for making money with Bitcoin. If you want to treat it as a utility, this will give you the best chance of earning a profit.

    However, if you want to hang on to Bitcoin longer term, then you should keep it. Even if the market skyrockets, you might want to keep your Bitcoin.

    Of course, you can sell some to make a profit. Overall, you need to consider your goals and whether you want to sell your Bitcoin or use it tobuy something at a retailer that accepts Bitcoin.

    Related: How to Pay with Bitcoin

    Recommended Reading: What Is The Blockchain App

    Store Your Crypto In A Safe Place

    While bigger exchanges are becoming safer, hacks and fraud remain a big problem for the industry. This is why investors with significant sums in Bitcoin are advised to consider storing their cryptocurrency themselves.

    “Experienced traders that are very good with cybersecurity might prefer to own their wallets, as this gives you the ability to move your cryptocurrencies whenever you want to and not be subject to an exchange. The saying ‘Not your keys, not your coins’ was popular last year, as many exchanges got hacked or shut down,” says Moya.

    This means transferring your Bitcoin from the exchange you use to your own cryptocurrency wallet. Such wallets come in two forms:

    • Cold wallets: also known as hardware wallets, these are small devices that store your Bitcoin address’ private key, which is necessary to transfer Bitcoin out of the address. They do not connect to the internet and are therefore considered safer than online, software-based alternatives.
    • Hot wallets: also known as software wallets, these are apps that can be used through your phone, desktop computer, or web browser. They also store the private key of your Bitcoin address, but because they do connect to the internet, they aren’t considered quite as safe as hardware/cold wallets.

    Software wallets aren’t quite as secure as hardware wallets, but the leading varieties do still offer a range of security features, such as two-factor authentication and compatibility with hardware wallets.

    How To Sell Cryptocurrency

    How To Know When To Buy And Sell Cryptocurrency

    Cryptocurrencies can be sold at their respective exchange platforms and peer-to-peer networks. The procedure of cryptocurrency sale on these platforms is similar to that of purchasing them.

    For example, to conduct the sale, you may only need to click a button and pick an order type . Depending on the demand at the venue and market composition, the offering price for cryptocurrencies will fluctuate.

    Don’t Miss: Is Cryptocurrency Safe To Buy

    Final Thoughts On Bitbuyca

    In such a competitive market, can such a modest company attract the interest of your average crypto user? In our opinion, it can. The company does what it advertises: gives you a simple way of exchanging your coins into Canadian dollars, and vice versa.

    The organization is caring for their clients, their communication is top-notch, plus their verification process is extremely quick. Bitbuy is also safe and while their fees aren’t anything to write about, they still fall in line with the rest of the market.

    If you’re a Canadian crypto user, you should try Bitbuy.ca out.

    We hope that you found our review interesting and informative. What’s the best crypto exchange in your opinion? If you have any additional questions about Bitbuy.ca leave a comment in the section below.

    About the Author: Jordan Tuwiner

    Jordan Tuwiner is the founder of BuyBitcoinWorldwide.com. His work has been featured in The Guardian, International Business Times, Forbes, VentureBeat, CoinDesk and many other top Bitcoin media outlets. His articles are read by millions of people each year looking for the best way to buy Bitcoin and crypto in their country.

    He has also written extensively about the history, technology, and business of the crypto world. Jordan is also the creator of some of the internet’s most famous Bitcoin pages, including The Quotable Satoshi and Bitcoin Obituaries.

    To learn more about Jordan, see his

    Changelly Best Exchange For Instant Bitcoin Purchases

    Changelly is a top cryptocurrency exchange that enables users to swap, buy, and sell cryptocurrencies easily. Changelly is popular for its intuitive and straightforward trading platform, which allows users to locate the best exchange rate easily and quickly.

    It boasts over 2 million active users and runs a Changelly Pro variant that allows users to make passive income. Changelly operates out of Hong Kong. The platform is still not regulated by any known body, but it remains a safe and trusted service.

    Starting initially as a swap service, the Changelly exchange quickly expanded its services to buy and sell cryptocurrencies. It has continued to innovate, and its intuitive platform has served as a major draw for new traders. Its quick conversion feature is one reason why this platform is so popular in the crypto community.

    It runs a dynamic conversion system where a user can select between fixed and floating rate pricing. A floating rate pricing will see you pay for the current market rate. Fixed-rate will lock in the best exchange rate. However, customers have said that the exchange needs to improve its customer support and educational offerings.

    Pros

    Your Capital is at risk.

    Read Also: What Price Is Bitcoin Trading At

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