Cryptocurrencies have shaken the economy as we know it, and people all over the world are getting more and more interested in getting involved in buying and selling decentralized money. If you too are curious about Bitcoin, Ethereum, and other currencies, this guide will help you understand all the key information you need to know about crypto trading in 2022.
What Is Crypto Trading?
Crypto trading is the process of forecasting the price movements of decentralized money using a CFD account or the act of buying and selling digital coins through an exchange.
How You Can Do It
If you are looking to start crypto trading yourself, here are some important steps you should take:
Choose the Right Platform
When you decide to join a trading platform, make sure you check some of the key criteria such as the products offered, funding methods, fees in place, and account types. There are many tools available out there, and as a beginner, you want to be sure that you picked the one that supports your needs. If your time is limited and you would prefer to have the software run on its own, you can pick a platform that offers automated crypto trading. Bitcoin Apex, for example, allows the users to set up their accounts and rely on the software’s innovative algorithm that suggests profitable actions based on detailed market analysis data.
Verify and Secure the Account
Any website you choose will ask for some type of proof of identity such as your ID or passport, and probably a proof of address. The verification process is there to keep both the platform and your data safe, and as soon as you finalize it, make sure you add an extra layer of security to your account by enabling two-factor identification.
Make a Deposit
Check your preferred platform’s terms and conditions that specify the minimum deposit amount and load your account with funds you can use for trading. Always deposit the amount of money you can afford to risk. Once you’ve done that, you can start trading with actual money, and making withdrawals as soon as you generate some profit.
Most Popular Crypto Values
There are more than 10,000 digital currencies out there, and choosing the right one can easily become overwhelming. That is why we made a list of some of the top currencies you should know about:
Back in 2009, an unknown individual using the pseudonym Satoshi Nakamoto created Bitcoin, the first cryptocurrency ever. Just like most other types, Bitcoin runs on a blockchain which makes it safe from any kind of fraudulent activity. Bitcoin has no central bank behind it and it can be sent from one user to another via a peer-to-peer network. It is also the most popular decentralized currency, thanks to the fact that its value skyrocketed, growing by an incredible 7,600% from 2016 to 2022.
Ethereum is a blockchain that powers and secures the currency called Ether (ETH), as well as many other decentralized applications. It is a community-run technology that is mostly preferred by program developers who see huge potential in its different uses such as NFTs and so-called smart contracts where the users can make transactions without any intermediaries. Ethereum’s value also went up significantly, going from around $11 in 2016 to over $2,700 in 2022.
Litecoin was developed in 2011 by Charlie Lee, a former engineer at Google. It is an early altcoin created as a direct competitor to Bitcoin with an attempt to make such digital transactions faster and more affordable. Litecoin’s network offers free instant payments to the users, and it uses Proof-of-Work as a consensus mechanism. This peer-to-peer currency hasn’t experienced explosive growth like the previous two, but it has been rising steadily, going from around $85 at the beginning of 2012 to $128 a year later.
In the last few years, the crypto market has greatly exploded in popularity, creating a large number of opportunities for traders worldwide to make some interesting moves and generate profit. Now that you are aware of the key components of crypto trading in 2022, you can start investing in decentralized money.