Whether you’re just starting your adult years or you’re in your mid-adult years right now, you’re probably thinking where you’re going to invest your hard-earned money somewhere along the way. Of course, you can’t stay forever in that 9-5 job you go to everyday. Years later, you want valuable investments for yourself, a retirement, and many other goals such as buying a house and lot property and starting a business. You need money to realize all of that.
While putting your money in the bank would be one of the safest options out there, you’d surely agree that the interest rates offered that you can earn from, are just, well, a small reward you get from trusting that financial institution and putting your money in there. In simple words, put your money in the bank and it will just be sleeping in the bank. For some, it’s just the easiest solution for saving up money and giving themselves extra hard time for giving in to temptation to spend huge amount of cash, especially on non-essentials. You’ll surely agree, when you put your money in the bank that would restrain you in some way to overspend. That being said, you can control your spending habits and avoid wasting money.
Because saving money in the bank doesn’t guarantee huge returns, many people are turning to other investments and financial trading markets such as stock market and forex to grow their financial assets. Learn more about forex trading here.
Meanwhile, years earlier until now, the word “cryptocurrency” is making quite a buzz among financial investors and traders. What is really is it? What are its advantages and disadvantages? Is it possible to get started with trading cryptocurrencies without prior knowledge and experience about this financial market? If you’re a beginner, it’s good that you’ve landed on this page as we’re going to talk about the answers to these questions in a bit.
The Nature of Cryptocurrencies
Let’s admit it: For any novice the word “cryptocurrency” may sound like an alien term. It might even take us some time to understand its concept if we’re not that interested on anything related to financial trading markets or anything highly technical. And yes, investing on this newly emerging financial trading market could be scary.
In a nutshell though, cryptocurrency is digital currency or virtual currency. So-called miners are the individuals who help generate cryptocurrencies using strong cryptography. In the world of digital currencies, strong cryptography is also needed to ensure that all financial transactions are secure and to verify the legitimacy of transfers done from individual to individual. Get to know the different cryptocurrencies click https://en.wikipedia.org/wiki/List_of_cryptocurrencies
Unlike fiat currencies that are controlled in a centralized manner usually by a central bank, under the main government of a country, cryptocurrencies function in a decentralized global network, meaning, all transactions are on a peer-to-peer basis with no central control to oversee and impose rules on transactions and keep all the records. In a decentralized system, every individual in the network needs to keep a record of every single bit of transaction carried out to be used as a reference for future transactions.
In addition, cryptocurrencies are simply how you imagine it to be—they have no physical form, rather, they are only digital. Meanwhile, fiat currencies can exist in both digital and physical form, in the sense that you can do online transactions, send and receive money online, but you can freely withdraw it in physical form, for example, from ATM machine.
Cryptocurrency Trading: Pros and Cons
Just like other forms of trading such as stock market, trading cryptocurrencies can be risky. Yes, bud, financial trading isn’t meant for faint-hearted. It’s rather meant for those who can keep up with the challenge, threats, and risks that high volatility poses. Yet, price movements are actually what makes one earn or lose from trading cryptocurrencies.
Similar to stock market, a trader may earn from cryptocurrencies, say for example, bitcoins, if he buys it in low price, but he is able to sell it in huge amount, then we can say that it’s a winning situation for him. The risk there is when you’re not able to sell those coins when you’ve bought all of it in huge amount but the price dropped and didn’t make significant changes at all for some time. This is why, if you’re not okay with that risk, then trading cryptocurrencies isn’t meant for you. It’s actually not meant for everyone. If that’s the case, better keep your money in the bank and wait for some time for it to accumulate earnings from interest.
On the other hand, while it is similar to stock market and other financial trading businesses popular nowadays, cryptocurrency has some advantages as compared to others. The cryptocurrency market is always open, yup, no closing times, so you can buy and sell as much cryptocurrencies as you want, whenever, wherever. Money transfer is easy-peasy as well. It is faster with lower costs.
Getting Started with Trading Cryptocurrencies
If you don’t have big knowledge with cryptocurrencies or prior experience, is it possible to enter this venture? Well, yes. In fact, many cryptocurrency traders started with little knowledge to no experience about it at all. But along the way, they were able to figure out what is it all about, how it works, and how to possibly earn from it.
Yet, it doesn’t also teach you to jump right away without testing the waters first, so to speak. First, do all you can to find useful information about trading cryptocurrencies. Watch videos, read articles and ask questions to those who have tried it already, if you know someone. There’s a vast amount of information right now about it. You just have to filter out the useful ones. Those that actually make sense.
To make it easier for novice traders, robots or different kinds of software especially designed for trading cryptocurrencies automatically were made. So, how do these robots or software apps work anyway?
These robots or computer programs watch for and recognize the current trends and do the trades automatically on your behalf. These robots can be probably programmed as well when to stop trading.
So, what’s in it for you? Creators of these trading programs claim that it will be easier for beginners to enter the cryptocurrency market even if they don’t have prior knowledge and experience in it. These robots also promise fast, huge returns. Some of these programs were designed to be more user-friendly and easy to learn. What’s more, some of these are also available free of charge.
But, you think you’re sure to bring home those huge profits yet just because these programs exist? Too good to be true, right? Undoubtedly, yes. Too many of these programs would mean too many to choose from. You’ve guessed the bad news right: Many of those aren’t legit. Therefore, you’d still need a considerable amount of time to get to know a software more, whether it’s legit or not. Research and read honest reviews about these cryptocurrency trading robots to find out if it would be the best for you. Many of these programs even offer a walk through via a free demo account where you can get firsthand experience of the trading system.
Cryptocurrency trading isn’t meant for everyone. At least, it’s safe to say that many traders have earned significant profits from it. It has also several advantages against other financial trading markets available. Many are still confused what it is all about and how it works. For some though, it’s the currency of the next generation. What do you think about it? You decide.