11 January 2021
Blockchain
How to trade crypto effectively?
How to trade crypto effectively?

Cryptocurrencies are the best investment instruments of the new millennium, overrunning gold, and stocks. Meanwhile, newcomers should foremost understand how and where to trade crypto.

The year 2020 is a real breakthrough for digital currencies that are now considered effective and promising investing instruments. Both individuals and major companies invest in crypto assets, while the number of blockchain wallets surpassed 55 million in October 2020 (27% of growth within the year). More than 36% of institutional investors prefer to hodl Bitcoins in their portfolios, while the massive study of Ethereum wallets showed such global corporations as Amazon, IMB, Walmart, and several others are supposed to have ETH investments. Hence, digital assets are undoubtedly on the rise, and that is the best time to trade crypto.
Which are the main benefits of crypto trading?
The following key-note factors are distinguished among the best advantages of cryptocurrencies:
1. The crypto market never closes because digital assets are totally decentralized and controlled by no financial institutions; therefore, crypto trading is available 24/7.
2. The number of issued cryptocurrencies has exceeded 7 500, and traders are free to select the most promising assets.
3. Although the market is characterized by high volatility, there are some evident trends and signals, so a person may understand how to trade crypto for profit.
4. Return on investment rates of most digital assets are impressively high. For instance, the ROI of Bitcoin is more than 9000%. Furthermore, within the year some digital assets have skyrocketed by more than 200%.
Key recommendations on how to trade crypto
Crypto trading is a sector where “the sixth sense” should be combined with analytical instruments. Successful traders are always professionals, and newcomers are expected to remember the following things:
• There is a diverse array of crypto assets, but traders are supposed to be interested in some of them to understand profoundly how to trade crypto currency, what are the factors to influence its price, etc.
• Traders need to follow some strategy. Someone finds out the signals on how to day trade crypto, while others prefer longer terms to obtain more profit.
• Follow the news, as some may impact the market in general, or some cryptocurrencies particularly.
• Deal with reliable platforms only to have your investments protected.
Where to trade crypto?
There are more than 400 crypto exchanges and other platforms where a person may buy, sell, and exchange digital currencies. Such a problem of overchoice frequently leads to a situation when traders join unreliable platforms and lose their investments. Which are the top features of a reliable crypto exchange?
1. On the one hand, digital assets are decentralized, while on the other hand, this class is massively adopted globally by the parliamentarians; therefore, the best way to trade crypto lies in selecting an exchange that meets legislative norms.
2. Traders need a platform that allows them to deposit and withdraw money easily, offering several options.
3. Security is always an important factor, and traders need a platform that provides safe crypto trade and the security of funds and information. Furthermore, two-factor authentication is highly required to protect accounts from unauthorized access.
B2BX crypto exchange offers traders the best conditions, including the fastest execution, a diverse array of crypto markets, and multiple options for depositing and withdrawing funds. Furthermore, the exchange adds popular and liquid digital assets only, avoiding scam and fraud projects. When a trader is interested in how to trade crypto for profit and be protected, B2BX is the right choice.
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