Cryptocurrencies can be traded on specialized online platforms – cryptocurrency exchanges.
About cryptocurrency trading
Trading cryptocurrencies can be very rewarding because like all young currencies cryptocurrencies often experience increased volatility with prices fluctuating in hundreds of dollars in a matter of hours. This makes cryptocurrency trading potentially very profitable even though it also means that the risk of losing a lot can be quite high.
What is needed for cryptocurrency trading
Trading cryptocurrencies is a straightforward process that requires a trader to have access to two main resources – a personal cryptocurrency wallet and an exchange. There are a lot of online and offline crypto wallets to choose from. Different wallets are designed to hold different cryptocurrencies and offer various level of protection. As such, online wallets are the easiest to set up, but they are also the least secure. On the other hand, hardware wallets are the most secure, but less user-friendly and also relatively expansive.
A trader can choose to trade on any of the many online platforms. Generally, any popular trading platform is equally sufficient, with platforms differing from one another mainly in interface or available cryptocurrencies pairs.
Platforms for cryptocurrency trading
There are several resources designed to provide valuable information to traders. For example, TradingView delivers an easy to use interface for those who want to keep a closer eye on essential charts.
Cryptocurrency trading bots and apps
Experience traders are able to use special trading software called trading robots, allowing them to make trades even when they are offline based on in-depth data analysis performed by the software. However, trading robots are not easy to use correctly, and they are not recommended for beginners.