Crypto Trader 14 articles

What is Crypto Trading?

During the last decade, cryptocurrency has become one of the most popular investment options. That said, crypto traders have found it to be one of the most risky ones to specialize in, too.

There are numerous stories of crypto millionaires but for each one of those there are likely thousands of untold tales about people who lose money while investing in crypto.

By definition, cryptocurrency itself is a digital currency which uses cryptography to secure transactions. All the data from the transactions is being saved in a virtual ledger (most commonly, the blockchain). In fact, the first modern cryptocurrency ever released was Bitcoin, 13 years ago.

Depending on their possible use, individual cryptocurrency units can be referred to as tokens or coins. Some are possible to be used as a storage of value or as units of exchange for goods and services.

The Crypto Trader Profession

This new opportunity to make money online has attracted approximately 50 million crypto traders in recent years. Their profiles range from young students to software engineers looking to build up their own investment portfolio.

Crypto Trading is the process in which cryptocurrencies are being bought or sold for a certain profit. It all works via an exchange as the trade of coins can happen through the crypto’s own digital exchange index.  The whole process of crypto trading is available 24 hours on the market.

Many traders who are completely new to crypto start by choosing a digital crypto wallet and a crypto exchange/ trading platform they would like to use. There are more than 1500 cryptocurrencies to choose from when you start.

Beginners usually choose to trade in Bitcoin (or a well-known currency) as the transactions can be done anonymously by users without the need of a middle man. Actually, Bitcoin can be bought from digital wallets and allows users to start their journey in crypto.

What are the advantages and disadvantages of investing in Cryptocurrency ?

Advantages

Low taxes and fees

What makes crypto trading attractive is that it could be done in a peer-to-peer way allowing the transactions to be completed directly between the users without a third player. Moreover, as there are exchanges, the taxes included in the process of trading are relatively low and optional because of the big competition.

Global accessibility

Most types of cryptocurrencies are available in all countries and regions around the world. What is interesting is that crypto is the only asset that can be traded by everyone aside from its status or nationality. The 24-hour availability of the market allows people to make investments at any time.

Secure transactions

Users have their own private key for digital wallets which keeps them safe from attacks. The blockchain system manages the transactions to be secured with the help of a distributed network of computers authenticating the transactions.

Disadvantages

 Risky investments and Volatility

When the market price  seems to move slowly, the value of the digital currencies can change surprisingly and very fast at the same moment. Volatility is normally occurring in the crypto market, mainly because the prices are guided by the supply and demand principle.

Since people are putting a huge amount of assets when trading, there always exists the risk of losing them. That is why successful investment in the crypto market depends on the trading technique a user has established and how much risk they are ready to take.

Lack of proper control

There are no rules or regulations established when trading with crypto. There is a chance of losing your money because of a certain scum as people can never know who they are paying or selling to.

FAQ

Who are the authors writing guides for crypto traders?

Our main reporter specializing in the crypto trading topic is Bojan Stojkovski.

What materials are written most often?

We cover news related to crypto trader platforms along with deeper interviews and analysis delivered by experienced crypto traders and experts in the Southeast Europe region.

Can I subscribe to updates related to my crypto trader portfolio?

Yes. Subscribe to The Recursive newsletter to get the latest crypto trading insights delivered straight to your mailbox.