If simply investing in bitcoin isn’t quite exciting enough for you, then you might want to think about becoming a crypto trader.
Traders speculate on the price movement of popular currencies, buying and selling based on whether they think the prices is likely to rise or fall.
Trading differs from standard investment in several important ways. With an investment, you are purchasing a certain amount of a currency and hoping that the value will rise by the time you come to sell. It’s a simple process, but one that puts you at risk should the prices crash.
As a trader, you’re not actually relying on the prices rising at all. Instead, you’re trying to make good tactical decisions so that you can make a profit regardless of how the market moves.
This does mean that trading is a little more involved than investment – you need to put some time in to understand the market and then make the trades. However, for many traders this is all part of the fun, and it can become as much a hobby as a way of making money.
Crypto trading software
Given the complexity of the crypto market, it’s no surprise that many people turn to technology that can help make trading a little easier. Software such as the BTC Prestige App will perform market analysis on your behalf, looking at the price fluctuation of bitcoin and many other popular currencies. This analysis can drive your trading strategy, giving you the data that you need to make informed decisions.
Using the app, you can choose automated trading options, or get more involved with each individual trade. This is helpful for beginners who may want a little bit of extra assistance at first, and gives you something to fall back on while you get to grips with the market.
Bitcoin trading software doesn’t guarantee you a profit, so make sure you only trade what you can afford. However, it does help to make the process smoother by providing expert market analysis.
Trading vs. investment
There’s no right option here, as it’s all based on personal preference. Some people will even choose to do both simultaneously, maximising their exposure to the crypto market. Consider whether you want to own cryptocurrency yourself (investment), or earn an income by speculating on its price (trading).
One possible reason for choosing trading over investment is that it typically involves smaller fees. It also helps to avoid the maximum deposit limits which can stop investments from reaching their full potential.
Choosing which currencies to trade
It’s often advised that beginner investors start out with some of the better-known currencies – Ethereum, Bitcoin and Litecoin are three of the most popular choices. Software such as the BTC Prestige App will give you access to a huge range of different currencies, so as you begin to feel more comfortable with how the market works you can branch out into other less familiar coins.
There’s no need to rush in – take your time, start by trading smaller amounts with familiar currencies, and work your way up to bigger trades as you become more confident.