More traders in cryptocurrencies are added every day. They act on a so-called 'exchange', a kind of exchange for cryptocurrency. With online trading, you can earn a lot of money, but also lose. The advantage is that all transactions are secured with cryptography. This offers advantages for investors. Are you a trader on a crypto exchange? Then read this article first. Are you considering starting with cryptos?
Every exchange has a different offer
No exchange is the same. Exchanges naturally want to offer something that someone else does not have. This also makes the offer different. Some platforms go for stability and therefore only offer the well-known coins Bitcoin and Ethereum, while other exchanges dare to make the guess and also offer dozens of other cryptocurrencies. A popular exchange is Binance. Binance is known for its large selection of digital coins. With such an offer, it is also not surprising that the exchange processes 1.4 million transactions per second. To see if the currency of your choice is included and if you feel comfortable with this exchange. You can always switch, but doing it right at once is more convenient.
The payment methods can differ
If you choose an exchange, it is important to have a look at the payment methods. Not everywhere you can pay with for example iDEAL or PayPal. Some exchanges only allow their users to pay with a credit card or debit card. Incidentally, it does not have to be a disaster, because with a credit card you can buy a specific cryptocard quite quickly. A bank payment can sometimes take days.
Practising with cryptos is a good idea
Often there is room to practice with cryptocurrencies at an exchange. By practicing trading in crypto coins, you become familiar with the jargon from the crypto world and you also know what to expect. With Plus500, for example, you can practice dealing with crypto. You can open a so-called 'demo account' there. That way you can avoid losing a lot of money. The website also protects you against a negative balance. It is also possible to make payments with iDEAL.
A review helps you move forward
Before you choose an exchange, it is good to read the reviews carefully. Before you act, you must know with whom you are going exactly. Choose a reliable and safe place. Know what others think of specific exchanges. In general, users give an honest opinion about both known and less well-known exchanges. Look up the reviews of for example Coinbase, GDAX, Changely, Binance and Bitvavo. These are the well-known names.
You have to be able to withstand stress!
Trading on a crypt exchange is not for everyone. Stress chickens might be better off doing something else. The crypto market is known as 'volatile'. This means that the value fluctuates quickly. As a result, you are faced with profits and losses. Are you afraid of Spanish if you have lost a hundred euros? Then acting on an exchange may not be for you. But if you are ready to join and cash in with the big boys, you should definitely not be stopped.
Questions you can ask yourself
Perhaps you are considering trading on a cryptocurrency exchange. You can ask yourself a few questions first so that it becomes clear what kind of dealer you are and which exchange suits you. Ask yourself what exactly you want to do with cryptocurrency. Do you want to experiment with it and learn how it is to buy and sell coins (with the risk of losing money)? Or would you rather buy it and then wait a longer time for the value to increase? In addition: how much time can it cost? Do you want to trade every day or do you leave the coins for a longer period of time? An important question is also how much money you are willing to lose. That is the risk of trading in crypto coins. You can make a lot of money with it, but you can also lose a lot more. Therefore, only invest money that you can miss.
