Cryptocurrency Trading and investing Guide

Cryptocurrency is digital money made of code. 

Bitcoin was the main digital currency made in 2009. Bitcoin has an esteem, and simply like any other currency, it is used for buying products and services by the individuals who acknowledge it. 

Numerous new digital currencies have risen since Bitcoin and these are normally alluded to as altcoins. Altcoins are coins that are not Bitcoin. 

It is important to understand Cryptocurrency: It is digital money that is made and managed by using advanced encryption methods called "Cryptography".

Cryptocurrency have been actually made to serve more purposes than just for trading medium between individuals. 

For instance, Ethereum is a blockchain that works as an open platform where decentralized applications and contacts can be actualized. Ethereum is the platform and Ether is the cryptographic token which powers the Ethereum network. Ether enables customers of the platform to pay for the machines executing the activities. Cryptocurrency like Ether, have a one of a kind system in which their currency was made to boost.

So what is CRYPTOGRAPHY?

Cryptography is the science of secret communication and is responsible for converting data into code which cannot be read by the public. This makes it transmitted but not decoded. Only those with a private key which is actually a password, have the capacity to interpret the message. 

If you lose your bank account password, you can restore it with the bank. However if you lose your private key, there’s no bank to help you recover it and your funds are gone forever.

  • Cryptography is also the mathematical magic behind: 
  • Authenticity of transactions
  • Privacy of transactions

Why invest in Cryptocurrency?

Broadening: This could change as these business sectors develop, yet cryptographic forms of money have low relationship to for all intents and purposes some other resource class. 

From utility point of view, most Cryptocurrencies are far from achieving fundamental road appropriation, and sometimes even verification of idea. In any case, recall, markets devour development and get a kick out of the chance to value occasions far into what's to come. 

The unmistakable applications are not yet before our eyes, but rather from a beginning period venture angle, this is the time youneed to focus. 

Why trade Cryptocurrency? 

The vast majority of the speculation reason we just examined apply specifically to exchanging, yet here are several additional bits of knowledge: 

Opportunity: The instability and everyday value variances present some incredible open door for dealers. Moves in this space, from a rate premise, reflect that of alternatives contracts. 

Absence of Professionals: Unlike the stock exchange, Cryptocurrencies are not yet covered with high-recurrence dealers and complex calculations comprehending for each market wastefulness. Most gifted merchants should locate an expanded edge here. 

What are the risks of investing in Altcoins? 

You can't appreciate vast 1,000+ percent returns with many risks. Some may be a lower probability than others, but everything that follows should be considered if you are planning on allocating to this space.

Regulation risks are an unavoidable issue at the present time. Cryptocurrencies share this awesome property of decentralized administration. Notwithstanding, this does not make a difference to trades. When you trust a 3rd party to hold your private keys (passwords) you are at risk to hackers, thieves, and illegitimate actors. Here’s a disaster story example, and a second example.

You are your own bank. You have to ensure you don't keep your assets in a hot wallet associated with the web, lose your private keys, or commit errors exchanging tokens starting with one wallet then onto the next. 

These are not develop markets. Outrageous moves because of illiquidity or news occasions can cause extreme spikes in business sectors. Simply investigate the end result for GDAX on June 21st, 2017. 

It's likely that huge numbers of these Cryptocurrencies never get main street adoption or a working network. Developers can come up short, aggressive coins can rise, control hazard could wreck ventures, or the commercial center essentially couldn't care less about what that coin offers. 

In customary budgetary markets, the typical disclaimer is to just contribute or exchange with cash you can stand to lose. In crypto, you should presumably slice that number down the middle given the considerably more serious dangers to this still youthful market. 

Where to buy Cryptocurrencies?

There are a lot of websites to choose from if need to get some Cryptocurrencies, and according to the amount you intend to purchase, what nation or even state you are in could impact your decisions. 

The most prevalent and least demanding route for US occupants to get their hands on Bitcoin, Ethereum, and Litecoin is Coinbase. Coinbase is one of the best for exchanging fiat for crypto and the other way around and wherethe procedure is simple to begin with.

Where to trade Cryptocurrency?

One standard procedure is to exchange fiat to Bitcoin on Coinbase, and then transfer them immediately somewhere you have the private keys, or make another exchange. Coinbase does have their own exchange for cryptocurrency trading called GDAX and that is highly liquid for Bitcoin, Ethereum, and Litecoin, but if you’re looking to trade a larger universe of Altcoins you’ll need to go elsewhere. 

When thinking about exchanges to trade on, here are the considerations, we suggest researching before diving in:

Security. Have there been any major security holes or incidents in the past? Do they store customer coins in cold storage? IP withdrawal restrictions? 2FA?Reputation and support. Do they have moderators that are standing by to field questions (live chat)? Twitter support?

Liquidity: For trading altcoins, liquidity is important, especially during periods of elevated volatility. For a snapshot of volume rankings of exchanges, check here.Trading tools and advanced orders. These are things like stops, OCO orders, technical indicators, etc.Once again, country and state are prerequisite considerations.

Where can you secure your Cryptocurrency investments?

Controlling your own private keys and not relying on a 3rd party to do it for you is the best way to safeguard your coins from intruders. The best way to achieve this is by adopting a cold storage solution.

Cold storage simply means your private keys (password) is stored offline and is not connected (accessible) to the internet.

The most popular way to do this is:

  • Create a paper wallet.
  • Store them securely on your own USB drive.
  • Purchase a hardware wallet.
  • I keep 90% of my funds on a hardware wallet and the rest sit on an exchange for trading opportunities.

The Trezor and the Ledger are the two dominant hardware wallets in this space and I highly recommend either one for a safe cold storage solution. The Ledger currently supports more altcoins, but both do a fantastic job in terms of security.

Risk Disclosure: Cryptocurrencies are influenced products. CryptoGT associated with foreign exchange, common assets and other underlying variables, involves a high level of risk and a possibility of loss of some or all of your investment.Please consider carefully whether trading or investing in bitcoin is appropriate to your financial situation. Only risk capital should be used when trading or investing in bitcoin. You must review Terms of Service and this Risk Disclosure prior to establishing an account.

CryptoGT accepts only cryptocurrencies as method of deposit.