Greetings, Friends! I decided to write an article about the latest trends and a topic that everyone knows) In the article I will touch on the following points:
- My vision of prospects of cryptocurrency instruments
- Methods for buying cryptocurrency
- Cryptocurrency trading strategy
The prospect of cryptocurrency instruments
In this section, I will not paint a multiple comparison of the current financial system and the financial system of cryptocurrencies – I will only touch on those qualities that, in my opinion, will allow this innovation to survive. The new blockchain method is a continuous sequential chain of blocks containing information. This technology has already been implemented not only on the side of Bitcoin and cryptocurrencies. There is a strong interest in blockchain technology in various areas: the banking sector, land registry, identity systems. It is also worth noting that blockchain technology allows you to get some anonymity and the ability to exchange this currency without providing any data. The market and transactions for cryptocurrencies are not regulated by national banks, which forms the free pricing of this asset. Some assets, such as bitcoin in Japan, have received the status of an official payment system. The presence of all these facts allows us to say that cryptocurrencies are not a passing concept. The only question is in the price reflection of the current value of popular currencies like Bitcoin. This is only a small part of the information, if you wish in more detail – welcome to the Wikipedia pages)
How to buy cryptocurrency?
Of the current methods of obtaining cryptocurrency, consider:
- direct purchase of cryptocurrency through exchangers with crediting to a cryptocurrency wallet
- buying through cryptocurrency exchanges
- indirect purchase of currency through mining
Now in more detail about each method. Buying cryptocurrency through an exchanger A list of exchangers can be obtained through the popular BestChange service. Through this exchanger, you can purchase many cryptocurrencies, such as Bitcoin, LiteCoin, Etherium, Riplle, etc. in various ways, for example:
- exchange hryvnia to Bitcoin
- cash dollar on Ethereum
- LiteCoin to Visa / Mastercard
This is only a partial list, the full list is posted on the exchanger’s website. pros: you can buy the popular cryptocurrency without any hassle. Many payment systems and payment methods, cash and non-cash payments. You can read reviews about each exchanger. disadvantages of this method: the cryptocurrency rate is quite different from the exchange rate (of course not in your direction), overpayment on commission.
Buying cryptocurrencies through exchanges
This method does not always allow you to directly buy cryptocurrency right away; on many exchanges, you need to replenish a deposit that was previously purchased through a cryptocurrency exchanger. For example, you bought Bitcoin on the exchanger, then replenished the deposit with the purchased Bitcoin on the Polinex exchange, and only then exchanged it, for example, for Ethereum. Consider several popular cryptocurrency exchanges. Exmo exchange pluses: quite a popular exchange in the CIS, as there is a Russian interface, transfer via bank payment, replenishment via USD. It is also worth noting the presence of an exchanger with a fairly good rate. cons: communication with support is quite problematic, there is no way to reach the online chat at the time of this writing. Tickets also do not include the Polonex Exchange pluses: fast registration, great liquidity, 143 traded cryptocurrencies, domain registration since 2014, in terms of the daily volume of trade forks, the Poloniex exchange is one of the top exchanges. cons: no replenishment via Visa and bank transfer, no verified support, long account verification process. There are many other exchanges, but due to my youth in this industry I will not consider them yet. Be careful when choosing an intermediary, as the number of fraudulent “pseudo-exchanges” has also increased due to this topic.
Cryptocurrency trading strategy
Let’s look at cryptocurrency as a speculative instrument. To reveal the question of interest to many, how to make money on cryptocurrency? Today, most financial regulators look at cryptocurrency more as a speculative commodity, comparable to precious metals, rather than a currency. Currently, most of the acquisitions of cryptocurrency are solely to make money on its growth. Why not ? This tool has good properties for speculation:
- High volatility
- Clear growing trend movement
- Daily increasing liquidity
How to trade bitcoins?
Let’s consider the scenario of work on the most popular Bitcoin asset:
Based on the chart, we see that the growth is in the area of the 5-7 week cycle, which is replaced by a correction by 50% of the Fibonacci level. A similar method can be applied to other cryptocurrencies as well. Consideration of the strategy that I practice in my analytical reviews of the foreign exchange market. Due to the complexity of direct speculation of these instruments, you can alternatively choose the method of speculation with this instrument through a brokerage company. Today, trading in cryptocurrencies is offered by the time-tested broker WELTRADE. pluses: speculation through a broker – quickly close a position at the best price and withdraw profit in dollars, which cannot be done instantly through exchanges. Good fast support, a personal manager. cons: there is no actual delivery of the cryptocurrency, if you hold the position for a long time, you need to pay a swap. That’s all, do not risk everything, do not trade with borrowed money! When choosing a cryptocurrency, understand the values of the proposed idea, look at the “roadmap” – the company’s development plan, invest in nascent projects. A passing trend)