Cryptocurrencies are digital currencies, which may be launched publicly or by government entities. Cryptocurrencies rely on the blockchain technology to store transactional information in decentralized public nodes or government-owned nodes. Cryptocurrencies can be used as a form of payment for goods and services. Some people may use cryptocurrencies as a form of investment, however it is necessary to be very cautious due to potential risks associated with it.
This article aims to provide information on the transactional aspects of cryptocurrency and cryptocurrency trading. In this article, we will have a significant focus on how to buy and sell cryptocurrency online.
What Is Cryptocurrency?
Firstly, let us understand what cryptocurrency is. It is a digital currency and has no physical representation like notes. Cryptocurrency can be used as a medium of exchange, to some extent like fiat money but its acceptance may vary. It uses cryptography to ensure security and can be a convenient form of contactless currency. Further, this can happen due to several reasons like:
- It is easily accessible through online modes;
- It may allow faster international transactions;
- The transactional costs involved in transferring cryptocurrency may be lesser;
- Anyone with a basic understanding of cryptocurrency and suitable infrastructure can use it (local laws on use of cryptocurrencies may need to be considered).
These reasons can make cryptocurrency a suitable mode of transaction in present times.
According to the CoinMarketCap, there are more than 7000 cryptocurrencies available in the market. It is not known how many more cryptocurrencies may come up in the future. However, within 2020 the number of cryptocurrencies has sufficiently increased.
Some people buy and sell cryptocurrency with the intention to make money. The actual results of such activity depends on many factors, including the traders’ knowledge and experience. Let us check out where and how people can buy and sell cryptocurrency online.
Cryptocurrency Trading Platforms
One beneficial aspect of cryptocurrency is that it can be independent of government oversight in some cases. There is usually no gold repository against which it is valued. Therefore, both the private and public sectors may come up with their own cryptocurrency. To buy and sell cryptocurrency online, there are many trading platforms.
These are online cryptocurrency platforms where you may exchange cryptocurrency. You can create an account on such platforms. Alternatively, you may create accounts on multiple exchange platforms. If you have accounts at such crypto exchanges as Binance, Bittrex, BKEX, Coinsbit, Crex24, Huobi, Poloniex, Bitfinex or KuCoin, you can integrate these accounts into the Torex crypto trading platform using API connection. If that suits your trading needs, you can trade on a single platform and use such crypto trading tools as Torex Trade (supports stop loss, take profit and trailing stop), Price Checker, Telegram Messenger based Price Notification, Arbitrage Tool, and HODL Tool .More crypto trading tools are considered to be added in the future. Thus, one of the first steps can be creation of an account on a cryptocurrency exchange. Using this, you can buy and sell cryptocurrency by placing orders on the exchange.
If you are familiar with stock trading, it can be easy to understand how trade on crypto exchanges. People who regularly trade in cryptocurrency may follow some basic strategies. These strategies are quite similar to how we may trade in stock markets. Thus, the basic principles to buy and sell cryptocurrency are familiar with buying and selling a stock.
In trading, we generally aim to buy low and sell high. Therefore, you may monitor the cryptocurrency market prices for low prices. Whenever you see an acceptable price, you may wish to buy cryptocurrency. After that, you can easily monitor the trading patterns for better understanding. You may track the fluctuations and make a note of it.
If you see that the cryptocurrency has an agreeable value on a particular day, you may choose to sell your cryptocurrency through an exchange. This is the basic strategy of how you may buy and sell cryptocurrency online.
How To Trade Effectively?
You may want to choose a trading strategy that can potentially give you substantial returns. The cryptocurrency trading platforms like Torex can be a handy resource if you have accounts with multiple crypto exchanges.
In addition to allowing cryptocurrency trading through a single dashboard, they may give you insights and analytics tools. The platforms may also allow you to track market prices across exchanges through one portal by integrating with the supported exchanges using API keys. Torex, in particular, also has a Price Notification tool that sends you notifications on cryptocurrency prices via Telegram when the trigger condition is met. You can sign up with Torex within minutes if you wish to trade using it.
You may create accounts on different crypto trading exchanges. In this manner, you gain access to multiple order books across various exchanges. Thus, it may help you in making weighted trading decisions.
Managing different trading accounts may get tedious. However, it may prove to be helpful to integrate their accounts with Torex using API keys. Torex also plans to incorporate a news aggregator to fetch relevant news from different sources and collate them for the trader. You can also use the Torex Arbitrage tool to search for crypto arbitrage windows across your choice exchanges with sufficient liquidity.
Points To Consider
There are some aspects you may want to consider before you start crypto trading. Firstly, you may want to choose a cryptocurrency exchange wisely. As a novice, you may want to check the credibility of the different exchanges available. It can be necessary to conduct proper research while choosing a crypto exchange. Alternatively, you can consider using a crypto trading platform that can make the process of crypto trading easier.
There are multiple crypto trading platforms available online to choose from. Torex was developing its functionality, keeping into account the needs of seasoned as well as novice traders. Torex allows a trader to open a free account and then integrate their existing trading accounts with the supported exchanges using API keys. These are some of the things you should keep in mind if you want to buy and sell cryptocurrency.
Cryptocurrency has its inherent value but sometimes is not completely independent of fiat currency. Cryptocurrency markets may react to developments in stock markets which trade fiat money. Moreover, there are many exchanges and other types of businesses that allow you to purchase cryptocurrency using fiat money.
Crypto trading is one of the ways of making money online. It is associated with risks and understanding of trading principles is required to make money while trading crypto. Cryptocurrency trading platforms can make buying and selling of cryptocurrencies easier. The basic strategy in cryptocurrency trading is to buy low and sell high. Over time, you may gain more insights into how to improve your crypto trading strategy. If you wish to trade cryptocurrencies using your smartphone, then you can install the Torex App from the Google Play Store. The Torex App is considered to be available on the Apple App Store as well.
You are welcome to create an account at Torex crypto trading platform.