Getting into the crypto trade is something that a lot of people are looking to do. You might be looking to get into that as well. That’s because these virtual currencies bring a lot of benefits. One of the major ones is the profit potential.
It might or might not be your reason for looking to join the crypto traders, but it’s something to keep in mind. Either way, you’re going to need to learn how to trade virtual currencies. Now you can do this by yourself and you’ll need an account at an online exchange to work with.
This is the hard way as you’ll spend a lot of money grappling the basics. Trial and error will take a toll on your budget but you’ll remember some of the lessons for life. You can always take an alternative solution in the form of trading platforms.
These platforms feature the popular digital currencies with a virtual market to practice trading on. Also, they focus on different skills so you will learn the basics and some complex skills as well.
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Leverage and Margin: Know The Difference
Trading on these platforms’ markets will require you to deposit some virtual currency. Simply put, it’s your money that you can use to buy certain cryptocurrencies. Just like the stock market, the exchange allows borrowers (traders) to borrow from borrowers (traders). This creates a system of leverage and margin.
These are similar in some way, with the only difference being that leveraged instruments receive more risk than normal currency trading pairs. That’s because you need to input less currency to purchase the same amount (or more) coins/tokens/assets.
On the other hand, margin trading is similar but works with different leverage rules. They are the same in the sense that you purchase coins/tokens/assets by borrowing from another trader.
However, they’re different because there’s no standardized level of how much percentage you need to input for a certain amount. That means it varies depending upon the platform and the market that you’re using.
So How Does This Work?
For example, if a trader wants to deposit $100 then they can trade up to $10,000 worth of trading crypto. The platform uses ten percent as margin which is $1000 in this case. That would mean an increase of one hundred percent for your returns if you invest right. As long as there isn’t any bad news around the corner or it doesn’t affect prices too much (which usually happens with leverage).
The cryptocurrency market has all these risks and more associated with them like taxes and other factors like volatility and price changes. Luckily, most platforms will explain how it works for beginners who want to engage in the process.
In the meantime, it’s advised for people to take their time and get used to these trading platforms first. This includes everything from depositing money to learning all the rules and features associated with them. If you don’t know how that works then check out this guide or do a quick google search around it. You can start off by practicing your trading skills in a simulation practice mode available in the most popular cryptocurrency exchanges like Bitfinex and Finance (among others).
That way, you won’t lose any real money when you make mistakes and learn from them at the same time!
With that said, you’ll need to find some platforms. If you don’t know where to start, then here are some suggestions:
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Spark Profit
Predicting the value of an asset is important and pretty complex when it comes to crypto trading. This is a skill that Spark Profit focuses on. Also, you’ll get the popular digital currencies to make predictions with. The right ones will give you points while the wrong predictions will deduct them. Then again you don’t really need any skill to profit from crypto trading. That’s because there are a lot of trading platforms that will do it for you. In fact, platforms just like the BitIQapp will do the hard work for you without a problem.
But you’ll need to adjust them first. This means you’ll need to learn all about the platform’s settings and how to adjust them. With that said you’ll need to create an account and deposit a small amount of money to make use of the platform. To learn about the settings you’ll get some tutorials as well as a demo account to fiddle around with them. Then it’s off to the live session and once you’re done with that you’ll need to take on the real world of crypto trading with newly learned skills.
Altcoin Fantasy
This is a simulator that focuses on basic skills instead of complex ones. So with Altcoin Fantasy, you’ll learn how to buy and sell assets which are crucial skills for visiting online exchanges. Additionally, you’ll get a virtual market to practice in as well as assets with real-time prices.
Market analysis is another skill you’ll learn with this simulator and it will come in handy in the competitions this game offers. There you’ll be able to sharpen your skills even further as you’ll have real competition to deal with. If you manage to get first place then you’ll be rewarded with a specific crypto amount.
CoinMarketGame
CoinMarketGame is in a way similar to Altcoin Fantasy because it also offers a virtual market with real-time prices of assets and a bunch of popular digital currencies to trade with. Moreover, it also focuses on the buying and selling skills of the trader.
This simulator acts as a game where you’ll have to solve puzzles, complete missions and interact with other people in the process. Essentially, it’s not all about crypto trading but does teach you some of the skills necessary for it.
The best part is that this platform doesn’t require any account creation or deposits so it’s safe to use. You can also try your hand at different virtual markets without worrying about anything happening to your balance!
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Binance Academy
This website has several educational videos related to both cryptocurrency trading and blockchain technology (the technology behind it). If you don’t know much about these topics then you should definitely check them out here because they will surely help you gain an understanding of the whole thing.
YouTube is also a good resource for that though it’s not as detailed or organized as Binance Academy. YouTube offers several videos that are both informative and fun to watch. If you’re looking for something specific then try out this channel. But if you want to browse around until you find something useful then check this one out instead.
Conclusion
Once you’ve got the skills you’ll need to decide other important things. This means focusing on one digital currency and finding the right wallet for you as a trader. So, if you’re looking to trade Bitcoin, you’ll need to go over the various wallets and pick out the one that suits your needs. Once you’ve got those areas covered you’ll need to keep an eye out for the fluctuations of your chosen asset. So as to make as much money as possible from it.
In case you’ve got a bit of free time, then try out the various simulators and let us know how they go in the comments section below!
