Cryptocurrency exchange, digital currency exchange (DCE) or Crypto exchange is a corporation which enables online traders to trade cryptocurrencies. With this type of online trading, you can trade currencies such as Bitcoin, Ethereum and Litecoin. Bitcoin is one of the most popular forms of cryptocurrencies at the moment around the world.
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Starting Cryptocurrency exchange trading
Trading Cryptocurrencies is not different from trading forex. Cryptocurrency exchange covers a whole lot of other currencies including Litecoin and Ethereum just to mention a few. In this piece, we will use Bitcoin as an example so that you will understand it better.
For example, you can start Bitcoin trading with an online trader that allows BTC with a different currency. Once you have done your research, you can then open an account with a Forex broker.
Learning Bitcoin trading
Learning Bitcoin trading is easy especially if you have a basic understanding about forex trading and other currencies. To learn Bitcoin trading, you must be able to interpret the charts and analyse global trends. Without an understanding of this, you won’t go anywhere. If you want to opt for a mentor, you can get a mentor who will help you get your head around Bitcoin trading. The main tool used for this type of Cryptocurrency is “Technical Analysis”. This will help you know when to enter or leave your trade.
Difference between Cryptocurrencies and other currencies
Cryptocurrencies and other currencies around the globe are government fiat currencies. Since we are using Bitcoin as our example, both Bitcoin and some currencies are not that different. Bitcoin and gold are the same because there is a finite supply which is different from fiat currencies. We often hear about Bitcoin mining, but do you know what it means? Creating new Bitcoins by using special software is called “Bitcoin mining”.
All Cryptocurrencies in the world
To date, we have about 46 active Cryptocurrencies and growing. Below are types of Cryptocurrencies that we have identified:
- Synereo AMP
- Ether or “Ethereum”
- Ethereum Classic
- Waves platform
- Bitcoin Cash
- Petro gold
- Bitcoin Private
Reasons for Trading Cryptocurrency
- Cryptocurrencies create more trading opportunities because they have high volatility
- Bitcoins give online traders bigger profits
- Bitcoin analysis easier
- Easy to access
- Expected profits are more than expected losses
- Bitcoin can be traded for 24 hours, 7 days a week
- Affiliate Program – Cryptocurrencies offer traders with affiliate programme. You get a good commission for every referral you get