If you are into cryptocurrency and want to start trading you need a great trading platform to do so.
Trading Platforms are networks or software that allow investors to place, cancel and monitor trades through financial brokers. On them, you can trade with financial instruments like Forex, CDFs, and other assets.
What is Cryptocurrency?
Cryptocurrency is digital money. It is secured and encrypted by cryptography. It does not need a central bank or a government to control the transactions or the way in which the currency fluctuates. There is no intermediary between the transaction and the profit. For a more detailed look into what cryptocurrency is, check out this SurfsUp! article where we talk about some of the general benefits of trading crypto:
- Eliminates extreme money printing.
- Contributes to less corruption.
- Eliminates the middleman.
- Reached the unbanked or those that do not have access to the banking system.
- Gives people custody of their own money.
- Makes mobile payments easier.
- Has higher security than the money you may have on the conventional banking system.
- Protects your identity.
Pwc explains Cryptocurrency like this:
Cryptocurrency can be also used to buy goods and services even though it’s most commonly used as an investment instrument.
Cryptocurrency has gone viral to the point that several companies have developed their own. They are called crypto tokens and companies that use them, offer them in hopes of raising funds. This new way of fundraising has also coined the term (no pun intended). ICO, or Initial Coin Offering.
Blockchain is the technology that’s behind crypto trading, it’s what makes everything possible. Blockchain is a digital record of transactions. It is composed of a series of individual records or blocks that are linked together on a single list.
It is most commonly used to record transactions made with different cryptocurrencies. However, as this technology has expanded each day it’s being adapted in different economic sectors.
Crypto: A Historical Perspective
You may think that Crypto is a relatively new financial concept. It turns out that its origins can be traced back to 1983, Yes you read it right 1983! David Chaum an American computer scientist and cryptographer developed the first blockchain proposal.You may think that Crypto is a relatively new financial concept. It turns out that its origins can be traced back to 1983, Yes you read it right 1983! David Chaum an American computer scientist and cryptographer developed the first… Click To Tweet
In the 1990s the US National Security Agency described the Cryptocurrency system in its report: How to Make a Mint: the Cryptography of Anonymous Electronic Cash and several authors like Wei Dai and Nick Szabo described an electronic cash system.
The first cryptocurrency created was Bitcoin in 2009. From then on multiple cryptocurrencies and tokens have been developed.
How to Trade with Cryptocurrency?
Let’s get started:
- Open an account: Open your account account according to how you want to trade crypto. If you want to own the coin, then open an account with a cryptocurrency exchange platform like Coinbase.
If you would rather profit from the price movements of crypto, then we reccomend trading CFDs. In this case one of the best places to start is with Tradeview Markets
Related: How to Trade Crypto With Tradeview
- Develop a Cryptocurrency trading plan: Risk management is key in every trading strategy. However, crypto is a volatile asset. Developing a trading plan for crypto includes the same elements as any other trading plan, with the exception that your facing more risk, specialy if your planning to make short-term profits.
Just remember to do right by future you and put youself in the most favorable position. There are no guarantees in trading, so getting caught up emotionally in a trade, specially if its a volatile asset like cryptocurrency can be devestating.
- Make sure you take into account that until the money is in your bank account your gains or profits are theoretical.
Among the main Markets, you can trade, you’ll find the Foreign Exchange Market (or Forex), the Stock Market, Exchange-Traded Funds markets, and Options Market.
Best Cryptocurrency Platforms
A cryptocurrency platform is a site or application that allows you to trade within the market you want. There are various types of platforms. Some of them are suited for certain markets, some have better charting tools than others.
One thing is certain, each one has unique features and you should make sure to choose the one that is best for your needs and goals.
MetaTrader 4 (MT4)
MetaTrader 4 (MT4) is one of the best platforms out there. It’s a customizable trading platform used to do Forex Trading as well as CFDs. Through CFDs MetaTrader 4 allows users to trade the price movements of cryptocurrencies.
It offers technical analytics tools as well as trading signals and trading robots among other features. Learning to use these features can improve your stats as a trader, so make the extra effort to use them.
You can create an MT4 demo account to do everything from getting the feel of the platform to practice your strategy, so we highly recommend creating one
#FastTip: To open a trade-in MT4 go to the “Order” window and create an instant order in the market you are trading in.
MetaTrader 4 was a huge hit from MetaQuotes Software, so it was no surprise they launched MetaTrader 5, with more features. The multi-asset trading platform covers both centralized and non-centralized financial markets. It’s even faster and more efficient than MT4!
If you want to know the main differences between MT4 and MT5 Click Here!
Related: Open an Account With Tradeview
This table was constructed taking into account the information available at Nerdwallet
Remember to check out more Surf’s Up! Content, and if you want to practice trading make sure to request your free demo!