Bitcoin

Crypto Commerce: A Beginner’s Guide to Launching Your Own Trading Odyssey

Finance Crypto Bitcoin

Cryptocurrencies have emerged as a revolutionary force, offering individuals the opportunity to participate in a decentralized financial ecosystem. If you’ve ever considered venturing into the exciting realm of crypto trading, this beginner’s guide is your compass to navigating the seas of opportunity.

Understanding the Basics

  1. What is Crypto Trading?

Crypto trading involves buying and selling digital currencies through online platforms. Unlike traditional stock markets, cryptocurrencies operate 24/7, providing endless possibilities for trading.

  1. Educate Yourself

Before embarking on your trading odyssey, invest time in understanding the fundamentals. Learn about blockchain technology, various cryptocurrencies, and the factors influencing their prices.

Setting Sail: Getting Started

  1. Select the Appropriate Exchange

    Opting for a trustworthy cryptocurrency exchange is crucial. Seek platforms featuring a user-friendly interface, robust security measures, and a diverse array of supported cryptocurrencies.

    4. Create a Secure Wallet

Your crypto journey begins with a digital wallet. Wallets come in various forms—software, hardware, and paper wallets. Choose one that aligns with your preferences and provides the security your assets deserve.

Navigating the Seas of Trading Strategies

  1. HODL or Day Trading?

Understand different trading strategies. HODLing involves long-term investment, while day trading seeks to capitalize on short-term market fluctuations. Determine which strategy aligns with your risk tolerance and financial goals.

  1. Risk Management

Crypto markets can be volatile. Establish risk management practices, such as setting stop-loss orders and diversifying your portfolio, to safeguard your investments.

Charting Your Course: Technical Analysis

  1. Gain Proficiency in Technical Analysis

Technical analysis encompasses the examination of historical price charts and the utilization of indicators to forecast future price movements. Acquaint yourself with candlestick patterns, identify support and resistance levels, and familiarize yourself with a range of technical indicators.

  1. Stay Informed

Keep abreast of market news, regulatory developments, and technological advancements. Information is your greatest ally in the crypto trading world.

Weathering the Storms: Emotions and Discipline

  1. Embrace Patience

Crypto markets can be unpredictable. Be patient, and resist the urge to make impulsive decisions based on short-term market fluctuations.

  1. Maintain Discipline

Establish a trading plan and stick to it. Emotional decision-making can lead to losses. Discipline is key to long-term success in crypto trading.

Harvesting the Rewards

  1. Track Your Progress

Regularly assess your trading performance. Learn from both successes and mistakes to refine your strategies and improve over time.

  1. Connect with the Community

Engage with the crypto community through forums, social media, and local meetups. Networking provides valuable insights and support from experienced traders.

Embarking on a crypto trading journey is both thrilling and challenging. With a solid understanding of the fundamentals, a strategic approach, and continuous learning, you can navigate the crypto seas and potentially reap the rewards of this evolving financial landscape. Bon voyage on your trading odyssey!

 

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Conclusion: Sailing into Success in the Crypto Seas

As you set sail on your crypto trading odyssey, armed with the knowledge and strategies outlined in this beginner’s guide, remember that the journey is as important as the destination. The world of cryptocurrencies is dynamic, filled with opportunities and challenges that require a constant willingness to learn and adapt.

Understanding the basics, from the nature of crypto trading to the underlying blockchain technology, forms the bedrock of your journey. Choosing the right exchange and securing your assets with a reliable wallet are the first crucial steps towards a successful expedition.

Navigating the seas of trading strategies demands thoughtful consideration. Whether you choose the patient path of HODLing or the dynamic world of day trading, implementing effective risk management practices ensures your ship stays steady amidst the sometimes tempestuous crypto markets.

Charting your course through technical analysis provides you with the tools to anticipate market movements. Staying informed about industry developments is akin to adjusting your sails to the changing winds, ensuring you’re always moving in the right direction.

Weathering the storms of emotions and maintaining discipline are the true tests of a crypto trader. Patience becomes your anchor, preventing impulsive decisions during market volatility. Discipline, your compass, keeps you on course, following the trading plan you’ve meticulously charted.

As you sail towards potential rewards, remember to track your progress diligently. Learn from each wave—both highs and lows—to refine your strategies. Connecting with the vibrant crypto community serves as your crew, offering support, insights, and shared experiences.

Embarking on a crypto trading journey is not just about financial gains; it’s a transformative experience. With a solid understanding of the fundamentals, a strategic mindset, and a commitment to continuous learning, you’re not just navigating the crypto seas; you’re actively shaping your financial future. Bon voyage on your trading odyssey, and may your sails be filled with success and prosperity!

Posted by Ned Queen in Finance

The People Who Started Bitcoin Trading

Bitcoin Trading

 

More and more investors speculate about Bitcoin. Interest in the best-known cryptocurrency is also growing among major investors such as pension funds. But what actually happens behind the scenes?

For the most important cryptocurrency, 2021 is already an extremely turbulent year. In early January, Bitcoin – invented in 2009 – reached a new record high of more than $41,000. Since then, the digital currency, which was originally intended as a means of payment, has temporarily lost a lot of value again – with price losses of up to 20 percent within a few hours. Finally, it went back in the other direction. For example, a simple tweet by Tesla CEO Elon Musk and discussions by private investors in Internet forums were enough to drive the price up by 20 percent at the end of last week. This rollercoaster ride repeatedly brings the largest digital currency into the headlines with a market share of over 60 percent. Industry experts have been reporting a growing interest in Bitcoin for some time: In addition to private individuals, large institutional investors such as banks, insurance groups or fund companies are now also entering the market.

First “crypto fund” in Germany

Patrick Karb, Managing Director of Frankfurt-based Hauck & Aufhäuser Innovative Capital GmbH, also notes this. “We see great demand from investors, especially on the institutional side,” he says in an interview with tagesschau.de. For this reason, the private bank Hauck & Aufhäuser founded the subsidiary in September and launched the first fund in the German financial industry at the beginning of the year, which consists exclusively of digital assets such as Bitcoin. The bank is cooperating with the Berlin fintech Kapilendo, which takes on the role of crypto custodian – i.e. the one who manages and secures the extensive calculation codes that make up the e-currency.

The demand from customers, from small semi-professional investors to pension funds, pension funds, and other investment funds to MDAX corporations, is enormous. This is also due to the recent development of Bitcoin. “The topic was also widely disseminated in the media so that cryptocurrencies became more popular not only in the private but also in the institutional sector,” says Karb. Especially in the Corona crisis, alternatives are being sought – Bitcoin also serves as a refuge currency, so to speak

Predominantly men invest in Bitcoin

Currently, the proportion of institutional investors worldwide is still very low. “Of the current about 700 billion US dollars in Bitcoin, about one percent is institutional money,” Jeff Currie, head of commodities at the US bank Goldman Sachs, recently told CNBC. The majority is traded by private individuals. Among these crypto investors, according to a recent study of around 100,000 investor profiles of a large German online bank, 90 percent are men. Other typical features are a comparatively high income and a certain affinity for technology, scientists from the Frankfurt Leibniz Institute for Financial Market Research found in the study. But how does this trade actually work

Hardly any regulation

“Before we trade, we monitor the prices on the platforms Coinmarketcap or Bitstamp, for example,” explains fund manager Karb. The opening and closing of the foreign traditional stock exchanges are also relevant at the time of purchase. “We are already seeing a correlation between the crypto market and the traditional market. In many cases, the overall economic situation also affects Bitcoin,” says the banker. For example, he has also benefited from the dispute over the speculation of the Gamestop share. Especially on weekends, however, there are often less fluctuating prices. The laws of Bitcoin development are complicated overall and not always rational.

The bank does not trade directly via special crypto exchanges and platforms, because these would for the most part not have sufficient admission in Germany, explains Karb. “We wanted to avoid getting the bitcoins from sources that we can’t uniquely identify.” On the blockchain, the technology behind Bitcoin, and a kind of digital logbook, the sources of origin are unknown.

That is why Hauck & Aufhäuser acted as a broker to the Frankfurt Bankhaus Scheich, which also has an approved crypto custodian. This at least reduces the risk of money laundering, says Karb. “When we order a transaction, Kapilendo verifies it, approves it, and transmits the order. Bankhaus Scheich then stocks up on the crypto market via various exchangeswithCoinbase or Kraken and makes the Bitcoins available to us in the fund’s wallet.”

Banks can act as brokers

The software for Bankhaus Scheich or Münchener Bankhaus von der Heydt, which plans to launch a crypto trading platform for institutional investors at the end of the first quarter, is being developed by the Frankfurt-based company Blocksize Capital. It ensures that the banks can act as brokers. The technology bundles the liquidity of 50 crypto exchanges, as Managing Director Christian Labetzsch reports. Within 100 milliseconds, the best possible price is recognized and the transaction is implemented immediately.

Normally, unlike the stock market, there is no middleman in crypto trading like a bank or a broker, Leon Berghoff, a graduate of the Frankfurt School of Finance & Management, explains to tagesschau.de. Exceptions in Germany are the Stuttgart Stock Exchange with the BISON app and the BSDEX (Börse Stuttgart Digital Exchange) or the Berlin crypto bank Bitwala.In most cases, however, investors set up an account directly with the stock exchange, which has both advantages and disadvantages. “Trading is much more transparent at first: You can use the trading data to see exactly what is happening on the crypto exchange,” says Berghoff. Another advantage lies in the relatively low transaction costs.

 

ALSO READ: Does Real Estate Accepts Crypto As Paymen

 

One risk, on the other hand, is custody. In regular trading, the cryptocurrency must also be stored on the stock exchange. “It can happen that stock exchanges are at the mercy of hacker attacks and the money disappears,” warns Berghoff. However, the more well-known exchanges are now more professional and better protected. The lack of regulation and state security can also become a problem for private investors.

How does a Bitcoin get to the buyer?

Leon Berghoff is a so-called quantitative trader at the startup Sixtant – and thus partly responsible for the fact that investors can buy Bitcoins at all. The company is a global high-frequency trader in the crypto sector. As a rule, such traders have contracts with crypto exchanges such as FTX, Binance, Bitstamp, or Bitso and ensure that there are always enough Bitcoins there. In return, they receive a fee.”If an investor wants to buy or sell a cryptocurrency, we are ready to be the counterparty to that trade at any time,” Berghoff explains. Since these transactions take place very often, high-frequency traders execute several trades per second. This is intended to keep the difference between the purchase and sale price low. Sixtant either borrows the coins from the respective exchange or buys them on the open market.

So that these companies, known in the financial world as “market makers”, are subsequently not exposed to the price risk due to the extreme fluctuations of Bitcoin, they also hedge against price losses within milliseconds. “We are always on the wrong side of the trade,” says Berghoff. If the market goes up, he has to sell Bitcoin – the opposite of successful investing. “When we buy bitcoins from someone, we try to sell the currency again as quickly as possible or buy a derivative with which we shorten the bitcoin.” By betting on falling prices as a counter-transaction, the risk is minimized.

Predictions by algorithms

In addition, many companies in the scene also have a department that makes profits through its own trading on the free market. The aim is to predict certain developments of Bitcoin minutes or seconds in advance, as Berghoff explains. In quantitative trading, this works automatically. As a dealer, he is employed around the clock. “Unlike a stock trader, a day as a crypto trader goes 24 hours, as the crypto exchanges are open at all times – 365 days a year,” says the expert. A lot can also happen overnight because cryptocurrencies fluctuate greatly. “This means that I first check the system and see how the algorithms acted and whether there were any technical problems,” says Berghoff. The Sixtant employees are spread all over the world to examine the system and the markets at all times.

“More screens than I would admit”

Otherwise, algorithmic trading has a lot to do with programming codes. “We get historical data for individual cryptocurrencies on certain exchanges: For example, I look at the price data of Bitcoin per minute over the past three years and try to find anomalies in it,” explains Berghoff. On this basis, he finally developed an algorithm that takes this effect into account in trading: “If it has worked in the past, we hope that it will also work in real-time.”Comparable, for example, is the so-called “Monday effect” from stock trading.

This states that Monday is traditionally the weakest day of the week on the stock market. In crypto trading, however, this is much more complex, according to Berghoff. By exploiting anomalies, attempts are made to make profits in proprietary trading. In addition, a high-frequency trader must check the codes and technical relationships on a trader’s day and correct possible errors. But he has, says Berghoff, “more screens at my workplace than I would admit.”

Posted by Laney Seward in Cryptocurrency

How Crypto is Changing the Future of Economy? 

If you’ve been following the news recently, you may have heard that bitcoin is going to crash again or that it has no value. These and other common misconceptions about cryptocurrency are not just false, but they obscure the real story: The way money works is changing, and digital currencies like bitcoin are leading the charge. In this article, we explore how cryptocurrency is revolutionizing the global economy.

What is Cryptocurrency?

Cryptocurrency is digital money that can be used for online shopping, transfer of value, or financing business ventures. Bitcoin, Ethereum, etc. are examples of cryptocurrencies and they are even traded in different platforms. The supply of each of these digital currencies is controlled by computer algorithms, not by central banks or other government institutions.

Cryptocurrencies are decentralized and their digital ledgers are publicly viewable by anyone. Anyone can transfer cryptocurrencies between two people without needing a financial institution to facilitate the transaction.

How Cryptocurrency is Changing Business and the Global Economy?

We are seeing a growing number of businesses accept cryptocurrency payments. This is a big change because these same businesses used to shun virtual money as too risky. Now they are welcoming crypto as a new source of revenue. There are many reasons behind this growing acceptance. One is the growing popularity of blockchain technology, which is responsible for powering transactions with cryptocurrencies.

Businesses see that blockchain is a secure, efficient way of processing payments that they may not have had access to before. They are also seeing that many of their customers are already using cryptocurrencies, and that they want more ways to pay with them. 

How You can Benefit from the Rise of Crypto?

If you buy cryptocurrency now, you can grow your investment as the market grows.

Investing in crypto is different from buying stocks or other securities, but the rewards can also be much higher. Crypto investing also offers more immediate rewards compared to other asset classes such as stocks, bonds, or gold.

And because of the reason that crypto market is still fairly new, even in this modern digital age, there are many opportunities for people to get involved and make money. It’s not too late to get started. To begin, it’s important to understand the basics. Once you know how the market works, you can make informed decisions about how to invest. There are many ways to invest in cryptocurrencies.

Posted by Ness Shantel in Cryptocurrency