Altcoins, i.e. all cryptocurrencies excluding bitcoin, have been attracting a lot of crypto-traders and crypto-investors – both experienced and beginners. The latter are certainly interested in the opportunity to make a fortune in a short time, but like any emerging unregulated market, altcoins carry a lot of risks. The number of existing cryptocurrencies and tokens has long exceeded a thousand. With every new ICO, another token emerges. Some of them are quite promising, others have long made a name for themselves, while others are created solely to quickly enrich their developers. Altcoin exchanges are also present in the cryptocurrency market in huge numbers, so a novice trader risks getting completely lost in this variety. All this makes cryptocurrency trading a potentially profitable but equally dangerous activity.
What exchange to choose for crypto trading?
As noted above, there are a huge number of altcoin exchanges, some of which do not deal with fiat money at all, while others willingly exchange cryptocurrency for dollars.
Judging by the volume of trading in digital assets, this exchange boasts the status of the largest in the entire financial sector. It offers more than a full range of cryptocurrency pairs available for trading. The exchange is very attentive to the selection of assets, taking care to ensure that users do not become victims of fraud. The service also allows virtual currency owners to receive passive income from assets by transferring them for lending or staking.
The exchange offers many altcoins, as well as the opportunity to exchange cryptocurrency for rubles, dollars and euros. However, users will have to say goodbye to anonymity and pass a special verification. The pluses of the exchange include the ability to activate an order only if a certain price is reached, making it difficult to manipulate prices. Another obvious advantage is the storage of client funds in the cold wallets. In addition, users note that the exchange has excellent support service. Nevertheless, many of the altcoins presented on the exchange have very low liquidity and, therefore, may pose some danger to inexperienced users of cryptocurrencies.
Cold and Hot Wallet
Cold wallet is an offline storage for cryptocurrencies. While it is more secure, it is less convenient because you need to connect it to the device. Hot wallet on other hand, is vulnerable to online attacks but is faster and makes it easier to spend or trade crypto. It is recommended to store big amounts of cryptocurrency in a Cold Wallet and have some amount on a hot wallet.
What to Invest In and How Much
Many novice cryptocurrency users are desperately looking for advice on what to invest in, and often find those willing to give such advice. Nevertheless, professional traders claim that investing in something based solely on someone else’s statements is a rather rash decision, and they advise to do their own research on the coin they intend to spend their money on.
It is worth looking at the historical rate of the cryptocurrency in which you want to invest. Information about the rate and the state of the cryptocurrency market is freely available online, as well as in the rating of cryptocurrencies.
One of the most frequently asked questions from beginner traders is how much they should invest. Answer is simple: only invest money that you can afford to lose.
Crypto-trading might be a bit confusing at first but with enough time and effort invested your portfolio will likely be profitable. Studying strategies and using the right tools is necessary to make profits.