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Have you planned to begin your crypto trading career or thought about spending some money in it? If yes, then you need to know that crypto trading has its own pros and cons. Cryptocurrency has gained popularity in recent years, and investors are excited to invest in it! However, getting success in crypto trading is not as easy as it seems.

If we talk about reality, then crypto trading is a risky business. There are some people who have made enough money through this, but some have also lost everything. If you want to learn all about cryptocurrency trading, then keep reading further.

Cryptocurrency trading- 

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Bitcoin is the first-ever cryptocurrency that came into existence in 2009. But with a single coin, you cannot make a trade with other cryptocurrencies! It wasn't possible to trade at first, but when more and more cryptocurrencies came into existence, people started trading cryptocurrency.

People who trade have to make use of a cryptocurrency exchange so that the buyer, as well as seller, can be matched.  For example, if you have a Bitcoin and want to sell it to get it converted into Ethereum, then exchanging will help you search for a seller who wants to trade Ethereum for Bitcoins.

The cryptocurrency exchange will charge some fee for finding a trader. It may cost you 0.1% for every trade. Now, this type of trading has become popular, and everyday coins worth dollars are sold and bought.

Short term crypto trading- 

Bitcoin trading close to $27,000 mark, its all time high

 

In this type of trading, you can buy a cryptocurrency; however, you can hold it for a short period! This period can be of minutes, days, hour, weeks, or even months! Some people buy specific cryptocurrencies thinking that its price will rise within a short time. You can sell that cryptocurrency for a quick profit in case the price is going to drop sometime again.

One of the biggest advantages of this type of trading is that it gives you a chance to earn high percentage gains. Unlike fair currency, where prices don't move by 1% every day in short-term crypto trading, prices can double overnight!

Also, at present, there are more than 1.5k different cryptocurrencies for trading. This means there are more chances of making a profit in the trade and not only that, but the volume of trades is also high. Large trading volume means that there is always a buyer or seller to trade cryptocurrency.

One disadvantage of this type of trading is that- as cryptocurrency is volatile, that means prices change within a few minutes, hours, or seconds. When it comes to short-term trading, you have to spend enough time analyzing the market!

Apart from that, there is one thing traders have to learn that they will not be always on the profitable side. It can sometimes become stressful when things don't go the way you planned. Hence, one must also learn to accept losses and understand that nobody can get 100% profit.

Long term trading- 

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Did you ever come across the word- "HODL"? If not, then you are really new to the crypto world. This word is found in the crypto forum as well as community chat groups. "HODL" is the term that means to hold crypto for the long term instead of selling it. The term expands as- “Hold on for dear life." In this type of trading, a trader holds a coin for more time, say a year or more.

The concept is that, although the price is volatile, it may increase in the long term. For example- Suppose you bought bitcoin in 2011 for $0.35. Now, if you hold them till 2017, you can sell them for $20,000 each, giving you a lot of profit from the initial investment.

One advantage of this type of cryptocurrency trading is that it is easy as well needs less time. You need not go through complete trading charts and analyze them fully. Since you are holding a coin for a long time, you have enough time to check the price whenever you get time.

Apart from that, another advantage is that you don't need lots of money to start. You can buy a little number of coins and hold it until its price gets higher! This, in turn, means you will have less stress.

Now let us talk about the disadvantages of long-term trading. One drawback is that you will miss short-term profits. Another disadvantage is that you won't be analyzing every day; thus, you can miss bad news. You can do keep your eyes on the news to know what is going in the crypto world.

Things to remember- 

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One thing to remember is that when you start trading, you may probably lose all your investment.

Secondly, never make trades that are not affordable to you. If you make this mistake, you will lose everything.

Thirdly, learn from your losses as they will make you successful in the long run.

Fourth, don't invest a huge amount to get back your losses. When you think emotionally, you are more likely to lose money.

So keep in mind all the above-given points and then start trading your coins to gain profit! There are lots of platforms where you can go for trading your cryptocurrency. Always use a reputed and legal- platform for trading. You can contact other investors or read reviews to find out if the platform is trustable or not.

After finding a suitable platform, you need to register your account. Registration will require some details like mobile number, email address. Log in using the username and password created and deposit the bitcoins or cryptocurrency that you bought from the coin base.

We hope now that you know a lot about what is cryptocurrency trading and its types as well as its pros and cons. You will be enjoying investing in cryptocurrency and have profits or losses. You can learn more about how to invest and when to invest in crypto trading, as well as other details if you keep your eye on news and posts from experienced traders online. There is lots of information available online which can be used for your profit if you look carefully and understand.

 

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