Cryptocurrency is a completely immersive investment that involves purchasing something much like stocks and bonds. In this case, bitcoin is the currency, but many other cryptocurrencies exist. Bitcoin itself was created in 2009 by an unknown person with the alias Satoshi Nakamoto. Since then, it has become a massive cryptocurrency that most people hold onto to speculate on their price rising or falling.
Trading bitcoins takes place on various exchanges in real-time, usually based on market orders, instead of buying at one exchange’s price and then selling at another’s margin of favorable rates. The trading process works by leveraging the potential difference between buying and selling prices to maximize profits for both markets.
What Are The Benefits Of Bitcoin Trading?
When you trade-in cryptocurrencies, the benefits can be amazing. For starters, you can often buy and sell at considerable discounts on the Bitcoin price set by the market exchange. For example, you can buy a Bitcoin for $1,000 and sell it for $900 within a day or two if prices rise too high.
Since Bitcoins are traded over the internet, there are no fees to use the exchanges for minor transactions. If you want to apply leverage to your trading efforts (which increases your buying power), there is no cost. Some exchanges even allow margin buying to creating even more savings opportunities.
Different Platforms For Bitcoin Trading?
Coinbase is the most widespread platform for trading bitcoins. It offers both online and mobile trading using bitcoin wallets and bank deposits. You can link your bank account and buy or sell as much as you like without being charged any fees. The platform also provides you with a mobile wallet that you can use to buy and sell when your PC is offline. As for my opinion I like this eToro review which people can search on the internet.
As the name suggests, LocalBitcoins focuses on providing its services exclusively to individuals within their respective countries. So if you want to buy or sell digital currencies like bitcoins and litecoins, LocalBitcoins is the perfect place. The platform connects you with online sellers who can help you find the best deals.
Voyager takes a different approach to bitcoin trading by providing platform users with up-to-date data on the various exchanges and their current prices. This information is displayed on a 24/7 basis, which in turn helps traders determine the best times to buy and sell their cryptocurrencies. Voyaers can also follow other voyagers, which is a great way to network with other traders and potentially learn more about strategies for increasing your portfolio’s value.
Coinigy offers a similar service as Voyager but ultimately provides you with more tools for controlling your chosen cryptocurrency exchanges than either Voyager, or CryptoCompare does. If you want to trade in bulk, this software is worth looking.
If you’re looking for a free platform that can help you keep track of the exchange rates between various cryptocurrencies, CryptoCompare is an excellent option. It provides you with detailed charts and graphs of how the values fluctuate over time and gives you all of the information that you’d need to complete bank transfers and buy or sell cryptocurrency on an exchange.